The last 5 weeks of trading have been intense. It seems almost like I’ve done a year’s worth of trading during that time, but ironically, I’ve only done a handful of trades — quite a change from trading upwards of 20 swing setups a week.
Why the change…?
Because I had to.
“The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” – Socrates
Do you know one of the top places traders lose money throughout their careers? Can you guess?
It’s when the trend shifts.
It’s when everything they got used to changes, and the rug gets pulled out from underneath their feet.
S&P Futures – Daily Chart – March 30th, 2020
This time, it was right around February 21st, 2020. But, it’s happened many times throughout history — and it’ll happen again.
How do I know this is when traders lose money?
Well of course, because it’s happened to me. And it happens to traders I teach and counsel every single day. And full transparency… I did lose a bit that day, but I also recognized the trend was coming to an end, I got out, and I didn’t fight it. I shifted to the new reality and moved onto what’s working now with the knowledge that’s been gained from going through this, over and over again, that births the experience.
And that’s how we build again, and renew — successfully.
So remember volatility doesn’t have to kill your hopes or your account.
I know the market’s uncertain right now, not to mention the threat of COVID-19. There’s uncertainty abound. But, what I do know is how to trade volatility. Because I am, and always have been a momentum trader.