The market as a whole has taken quite a beating lately…
And last week alone, we watched it hit a downward trend that sent investors and traders alike running.
But during times like these…
There’s only one way to protect your portfolio and grab some profits while you’re at it…
These Three Rules Can Improve Your Trading Game
With the talking heads on the financial news networks warning of the next market crash and traders buying the news and selling off their shares – it’s easy to understand why many are avoiding the market.
At the same time though, there are several jumping into new trades seeing that the stocks are down – seeing the price as an opportunity.
But I don’t believe in just jumping into a trade on feelings, and you shouldn’t either.
So here is some basic advice we can take advantage of to better your trading…
One of the most important things you can know as a trader is don’t trade until you’re familiar with the market, the outcomes, and the rules. Next up, learn your trading system and strategy – for example, when trading options in place of stocks, have your entry and exit points already prepared. Lastly, plan your trade, and trade your plan. That means sticking with the rules you’ve adopted. Remember nothing is a guarantee – but you’re more likely to be consistent and successful when you follow your rules.
Let’s look at Tesla Inc. (TSLA) as an example.
As we talked about earlier this month, TSLA has been caught up in a media circus and this circus actually led to Elon Musk losing his role of chairman.
And the stock felt the weight of the bad press and made a downwards move, which in turn spooked investors.
But these days, TSLA is actually up 3.6% and is currently outperforming automakers during the same stretch, like General Motors (GM), Ford Motor (F), Ferrari (RACE), and Fiat Chrysler (FCAU).
But this is just one example of how emotional trading can lead you to lose profits and big opportunities.
The truth is, when emotions take precedence over strategy, we put ourselves in the move vulnerable position when it comes to our financial security.
You see, when we are faced with this kind of volatility, it really brings us back to the very core of our trading game. My three simple rules for both trading and investing are as follows.
- Spot rules-based opportunities, but know that not every opportunity is guaranteed 100%.
- Be comfortable with the amount of risk you’re taking.
- Plan, execute, and manage your trades.
Now, my colleague Chris Johnson takes a bit of a different approach to trading through volatility… in fact, he doesn’t do a single thing while the markets are open.
But this unconventional strategy has done wonders for readers who took advantage of his recommendations last week. Take a look: October 4 – 63.93%, 54.84%, and 68.79%; October 5 – 24.79% and 50%; October 8 – 27.87% and 25.43%; October 10 – 53.43%; and October 11 – 25% and 26.61%.
Folks, that’s 10 consecutive winning trades in a row. Even better, he’s releasing a new trade tonight right after closing bell… click here to find out how to make the next move today.
Good Trading,
Tom Gentile
America’s #1 Pattern Trader
P.S. I released the details behind my two latest moves – which I expect to hit 227% total gains. Click here to learn how you can access the exact instructions.
