Six-Figure Trading

Six-Figure Trading


Trading Lessons During Extreme Volatility | Podcast

November 09, 2016

Why Most Traders Struggle and Lose Money During Stock Market Volatility
There is a delicate balance traders need to assess, before choosing stocks to trade. The balance between; profit potential and risk.
How much can I earn, in exchange for the risk I need to accept?
Struggling traders choose volatility, as the only criteria. The desire to make money takes control. This is like driving without brakes. This type of trading gets your heart pumping, but doesn’t keep you safe.
Most traders struggled, or lost money, because their criteria is random. Successful trading is structured. If this, then this… This applies before the trade AND during the trade.

* If the stock meets this criteria, I will consider trading it.
* If a stock meets these up trend identifiers, I will be a buyer.
* If the stock is in a down trend, but is strong today, this is my profit taking strategy, for today.
* If the stock moves higher, this is what I plan to do.
* If the stock moves lower, this is my plan.

If you struggled, your criteria is fuzzy. You are missing, “this is exactly what I am looking for…”
If you struggled you chased price, without the proper context of institutional order flow. You could not clearly answer, “what is the big money doing?”