•  4 essential tips for trading this up-and-down market…
•  How to avoid FOMO when you can’t find ideal setups…
•  PLUS – Bryce’s strategy for sizing trades in an unpredictable market…

What up, everybody? Bryce here.

On Friday, Tim Sykes woke up sick, so Matt and I filled in for his all-day, live Trading Mastery session. It was super fun, but we got so into the trading that we didn’t get to write the Sunday watchlist.

But don’t worry, you’ll get your watchlist on Tuesday. Today, we’ll get you prepped for the trading week with four important lessons to help you navigate the current market conditions. 

Let’s dive in…

Tip #1: Don’t Oversize Just Because Stocks Are Moving

When the market’s as hot as it was last week, it can be tempting to increase your position size. I’m here to tell you why you shouldn’t do this.

Don’t feel the need to use massive size if you haven’t proven consistency in the past.

First of all, some traders seem to be quickly forgetting how bearish the market was recently. So remember that there’s still a lot of leftover negative sentiment. You should proceed with caution, not size up.

What if last week was just a relief rally? Could the market be “fake hot”?

The answer is yes, it could. ANYTHING is possible in the stock market. 

Stocks have been ripping for a few days, but don’t get ahead of yourself. Now is the time to let the market prove itself to you. 

Tip #2: Let the Momentum Tell You What to Trade

How should you decide what to trade?

Different things work for different traders. I tend to stay away from the biggest percent gainers on the day.

I prefer to ride the momentum surrounding the main runner of the day. In other words, I let the momentum tell me what to trade. Here’s what I mean…

If there’s a huge single runner that’s dominating the small-cap market, it can often dictate momentum among related stocks throughout the day. 

These are some of my favorite setups to trade. They get the tailwinds from the main runner, but the names are much less crowded than some of these massive single-day winners.

Let the main runner of the day establish the momentum of the day. Then trade your plan, find your setups, and manage your risk just like you normally would.

Tip #3: Know Your Market

With the whipsaw market action we’re seeing, it’s more important than ever to understand the market you’re trading. 

You gotta know what setups work best for you — and which plays are appropriate for the current market conditions.

If you don’t see the setups that play into your strategy, size way down (or don’t trade at all). Be patient and wait for the perfect opportunity. 

In the past, I’ve had problems knowing my market. I would keep trading the same way I had for weeks (even when the price action was telling me to do otherwise). 

Don’t make the same mistake I did. If the market is signaling that you should adjust your strategy — listen!

Tip #4: Control Your FOMO

Sometimes your setups just aren’t there, even in a red-hot market. When this happens, it can be frustrating to watch other traders crush it while your account languishes.

But this is where you’ve gotta have DISCIPLINE. Giving in and trading a subpar setup is the worst thing you could do. If you do this, you’re letting FOMO control your trading.

Do the opposite. Control your FOMO to help set yourself up for success.

As a trader, you should be like a zen master — confident in your mindset and discouraged by nothing. 

If you didn’t make a ton of money this week, don’t worry about it. Stick to your plan and don’t let FOMO get the best of you. 

Conclusion

I hope these lessons help guide you through this crazy market. You need to be prepared for ANYTHING this week. 

Stocks have been all over the place in the past few weeks. Now we need to see if the market proves itself to us.

Matt and I will be back on Tuesday with an all-new watchlist!

To the moon,

Bryce Tuohey