How To Trade In An Unpredictable Market

Today on Inside My Brain, we're talking about how to trade in an unpredictable market. There are a couple of key strategies that will help you continue to gain profits while playing it safe in times of uncertainty.

The Week
A little more money flowed into the stock Market last week. Both NASDAQ and small cap company saw investing capital flow in. But what a hard week with prices once again going down hard then level out on Thursday with Friday being an up day. I believe the roller coaster ride will continue through July. There are so many nervous traders out there who just don’t know what to do.

When I am unsure of the Market I prefer to not trade much especially long term positions. What I do is a lot of quick hits in and out with the goal of grabbing a couple of hundred dollars here and there as an opportunity pops up. An example is MRK on Friday. The Price/Action was flat with a strong resistance.

Then the Price Action breaks up with a volume spike. I buy a CALL about a week out and close the trade by the end of the day. The price moved $1.30 and I picked up a 62% gain. Unfortunately, this kind of trading isn’t suitable for everyone.

So, what do you do in a wacky Market? My best advice is be very selective on the Tickers you choose to trade. The other key element is trade management – grabbing profits if you see the position start to reverse or if trade is in trouble, thinking through all the choices. The number one thing is DON'T PANIC TRADE.

DATA Update

The 10-Week DATA class is over. I did double my trading account. It was a hard 10-weeks to trade in. But here is the wonderful part. This kind of Market is where you learn the most. If you can be successful in all the chaos, when the Market settles down, you will be a champion.

I hope you enjoyed learning about how to trade in an unpredictable market. I would love for to join us during the next Double Account Trading Adventure which starts in mid-September. We always cap the class at 500 people. To get on the wait list email [email protected].