Desperate Times Calls For Non-Desperate Measures

Since February there has been nothing really good to say about this market. 

Traders are losing interest. 

Traders are losing hope. 

Traders are simply becoming exasperated. 

I get it…I feel it too.

But I have also felt it before. It isn’t unusual for the market to try to bring out the worst aspects of your personality and put it into your trading. 

Since February the market has been stuck in a historical range-for-the-ages and everyone is just sick of it. There is no momentum and there is no opportunity to really let a position run before getting pummeled by the market with its constant twists and turns. 

You have to be careful though, because these are the markets where traders lose their shirt due to poor decision making. They become desperate and they assume because the market is range-bound that they should widen their stop-losses or that they should just ignore them all together. Essentially they become desperate in their trading decisions.

If you are following someone who is saying this to you, you need to stop listening to them and get as far from them as possible. These people will destroy your portfolio with their “expert advice”. 

This is the time where you MUST adhere to the principles of risk like never before. If you are getting tired of seeing positions getting stopped out, don’t be. That tends to happen at a higher rate in sideways markets. The alternative is to let the losers run, and that obviously has never made anyone rich. 

So right now you have a market that has opportunity in it, but very limited opportunity. The range that it trades in continues to tighten and there is nothing great about that really. Ideally a trending market that is going higher or lower is preferable but that is neither in the here or now. With the tightening range that we are seeing underway since the beginning of July, there is a developing likelihood that this market is going to break hard in one direction or the other and when it does, you will want to be ready to jump on the opportunity at hand.

But you can’t do that if you are destroying your portfolio trying  to make out-sized gains in a limited-opportunity market. You have to take advantage of the opportunities the market is giving you and not try and force the market to conform to your expectations of profit returns, because the market does not care about your expectations. So the key here is to conform yourself to what the market is willing to give you. Trade with minimized expectations for profitability on trades. Keep the risk tight, and search out those opportunities in this underwhelming market that provides you with the most upside for the most limited amount of risk. 

I seriously cannot convey this enough! The market will break in one direction or the other, very soon. Be ready for it. Be ready to put some capital to work. And don’t trade this market the same way you would a market that is trending because that is not this market… not yet at least. 

So preserve capital, follow your risk parameters more serious, more diligently, and more mechanically than ever before. Don’t let losses get away from you. Keep them small while they are small. Big losses destroys the profits of future gains! 

If you are interested in learning more about my trading in this market and how I managed to continue to profit in it despite the limited opportunities, then sign up for a Free 7-Day Trial to the SharePlanner Splash Zone and with your membership you will have access to the best-in-class chat room that I am in every trading day, as well as all of my real-time trade alerts via email and text (international included). With my trade alerts you will get my entry price, my stop-losses, target price, chart analysis, trade confirmation, and rationale for every single trade that I make. 

I also am the only service that publicly posts a past performance with years worth of trading data for every trade that I have ever made in the Splash Zone. You can see this by clicking here. 

With The Splash Zone, you will get my low risk and high probability trade setups that no other trading service can offer.

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