Managing Your Expectations for Profit with the Market

Taking advantage of the profits the market is willing to give you is oh-so-important!

The S&P 500 hasn’t made a move of over 1% in more than 3 months now. As a result, you have to be patient with the market and can’t expect to make huge gains in a single day. Sure it is nice when the market runs 2 or 3% in your favor, but that doesn’t happen much, and hasn’t happened at all lately. 

As a result you have to curb your expectations. For one, you have to expect there to be plenty of give and take – and for much of 2014 that has been the case. Reacting to every two day sell-off with a massive influx of short positions will result in you over-trading and losing in both directions. Instead, use the opportunities to buy the dip and use tops to off-load some winners that have reached their full potential and when the market comes back down again, you will be ready to pounce on new opportunities. Aim to book profits of 3-5% on your trades and to do it consistently in this kind of market. 

So manage your expectations for the market and trade accordingly. You can’t expect to consistently book huge mega-winners. It’s always nice if they happen, but to be gunning for that isn’t the smartest move in town if you want to keep risk at a minimum – and keeping risk at a minimum is what I am all about.

I have managed in the SharePlanner Splash Zone, for the many years that I have been running it, to consistently profit in each and every type of market because I’ll align my goals and my profits not based on what I want, but what the market is willing to offer and when that happens, the opportunities to book consistent profits will always be there. Like today, I managed to book the profits in Western Digital (WDC) before the close for a 6.7% gain. The stock was overextended, there were a number of companies in its industry that was reporting earnings after the bell, and the stock was sporting a doji candle outside the upper candle. As a result, I decided there to book the profits and move on to the next trade. 

And that’s how you trade these types of markets where conviction seems to be lacking. 

So if you’d like to trade side by side with me each and every day from the time the market opens until it closes, then be sure to sign up for a Free 7-Day Trial of the SharePlanner Splash Zone, where you will receive all of my real-time trade alerts in the chat room as well as via email and text alerts (including international phone numbers).

For my complete past performance, you can check that out 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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