Watch the Charts, Not the Profits and Losses

The market proved how one day’s fearful sell-off is the next day’s buying opportunity. 

In the midst of the sudden and heightened volatility, one thing should not change – and that is one’s emotional state and approach to trading. 

One thing you can do is turn CNBC off and quit worrying about what they have to say. They need a bear market to boost their viewership so the sky will always be falling in their eyes. It’s a fact that their viewership more than triples in times like the 2008 recession and the dot-com bubble burst in 2000. So it is in their best interest to make you panic and tune in to them as a result. 

Also what traders like to do during times of great selling pressure is to stop following what the charts are telling them and instead watch the profit/loss on their account and then start selling stocks when the pain becomes too much. 

First off, if your profit/loss on a bad day in the market is causing your stomach to churn, then you are risking far too much on your trades. You should be able to find comfort in your stop-losses and not fear them being stopped out. If that is not the case, then you should reduce your positions size on your trades until it is an amount in conjunction with your stop-loss that will not cause you grief when a trade does not go your way. 

Because if you look at the chart from Thursday’s sell-off, the one thing that leaps off the page was that the sell-off took price on the S&P 500 down to the upward, rising trend-line that started off of the April lows. When I looked at most of my charts, the majority of them were still in good shape and didn’t need to be sold. As a result when Friday rolled around, there was a profit to be made off of the bounce and despite the sell-off on Thursday, the losses could be recovered simply by staying in the game and managing your positions based on what the charts are telling you and not what the profit/loss on your positions were saying in a specific moment in time. 

If you are struggling with your emotions in trading and how to consistently profit or you are simply in need of a place where you can trade with a multitude of other traders and profit from their ideas and strategies, then you need to sign up for a Free 7-Day Trial to the SharePlanner Splash Zone where you will receive full access to my chatroom where I am at Monday through Friday from the time the market opens until it closes that includes real-time trade alerts including email and text alerts (international numbers also). You can get started in the SharePlanner Splash Zone by clicking here. 

You can  also see just how consistently profitable my trading past performance has been over the years 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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