Some personal tips/opinions to help you navigate the markets we are in:
*While I have no idea were the market is going from day to day, minute to minute, week to week etc. I do know that in the past, some of the sharpest and largest rallies were short covering after a large sell off. More often than not market sell offs and volatility like we are seeing do not end up as V type of action but more like U or W when it is all said and done.
*Expect the unexpected…
* Widen the bands, use Bollinger bands as possible visual
* Use higher time frame. 15 MIN and above to try and filter out the noise.
*Be extra picky = no trade is better than a bad trade
* Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 2535.00 with a stop at 2519.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2519.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
* Have an idea of what you are looking to do, keep in mind possible risk and have a game plan. Now more than ever, plan your trade and than trade your plan!
* Think money management, hedging risk while you are still trying to figure out how to profit.
* Know what is going on, reports, current margins, current limits and more.
*Trade smaller. The bands are much larger. Watch the VIX.
* Learn to reduce trading size. Perhaps trade smaller contracts like the micros.
* Understand that loses are part of trading and this is definitely not a good time to “fight the markets”.
* Focus more on risk management and ways to protect certain positions as needed. Spreads? Options?
* Survive to trade another day.
* NO TRADE IS BETTER THAN A BAD TRADE
* DO NOT assume anything…if you are not sure, contact us
and we will try our best to assist with the combined, vast experience we have here as a team.
* Wash hands, try not to touch your face!!! take this seriously and do your best to stay healthy….