The SpaceX IPO is on our doorstep…
Before volatility explodes in the market, we have to talk about a very important trading mindset.
This is the main idea behind profitable trading…
When traders first start to navigate the market, there’s a fundamental idea they get wrong.
But if you want to capitalize on the SpaceX volatility, you’ll need this.
Trust me, this is an essential part of every successful trader’s process.
Volatility Is Our Friend
When the market is moving this quickly, short-dated options can spike exponentially compared to the stock’s real move.
A 5% move in the underlying share price can turn into a triple-digit move on the right contract.
So when the market turns volatile (like it is now), you don’t need a huge account to make huge gains.
There’s no reason to overload a single trade.
I cut my size when price swings turn more dramatic. I’d rather hold a smaller position that can still pay big than carry a monster that wrecks me on a single headline.
Size down. Let the volatility do the heavy lifting.
You Don’t Have to Catch Every Move
This is a common trap for new traders…
When volatility hits the roof, all the charts look like a potential trade setup. And the longer you watch, the more your FOMO grows.
Until finally, traders start building positions on random stocks just to try and snag a piece of the pie.
That’s how accounts bleed out. Death by a thousand mediocre trades.
I don’t need every move. I just need a few great ones.
I’d rather sit on my hands through ten decent setups and hit the two that are textbook than fire at all twelve and water down my edge.
Pick your spots. Hit them hard. Skip the rest.
Read the Why Behind the Move
Look at the chart on Invesco QQQ Trust (NASDAQ: QQQ).
The QQQ ran roughly 15% in three months, climbing from the low $600s up near $745.
Then came the red candles on the right side of the chart, a quick slide back toward $700.
The move is as plain as day… But what’s actually driving it, and can we trust the momentum to continue?
The Iran war is back in the headlines. But this drop doesn’t smell like war panic to me. Not much has changed in the last few weeks: there are still intermittent airstrikes while Trump claims a peace deal is in the works.
This selling looks technical, like profit-taking after a stretched run. Plus, traders are likely raising cash ahead of the SpaceX listing.
That distinction matters.
The most dangerous price action to follow is the kind with no fundamental fire behind it.
In this case, technical selling tends to burn itself out. When a crowded trade stretches too far and then unwinds on no real news, the snapback becomes the higher-probability move.
I’m not calling the exact bottom for the market. But I’m watching for the bounce, and I’m paying attention to the catalyst behind every move, not just the price on the screen.
You should know why something is selling off before you decide to trade it. And vice versa, understand the catalyst behind the price spike before buying calls.
Don’t Be a Hero
This is another mistake that blows up accounts.
- Heroes try to call the exact top.
- Heroes go short into strength without a plan.
- Heroes double their size to try (trying to make it all back on the next trade).
I’m not interested in being a hero. I’m interested in being here next month.
Take the high-probability setup, respect your stop, and walk away when the trade is done.
The market doesn’t hand out medals for bravery. It hands out losses to traders who confuse too much risk for courage.
Always Keep Dry Powder
I never throw my whole hand at a trade on the first entry.
Always keep cash on the side.
I know that I probably won’t time it perfectly. Nobody does. The stock will dip lower after I buy calls, or it will rip higher after I buy puts. And when it does, my dry powder lets me average into a better position for a stronger setup.
Being early isn’t wrong. It just means the move hasn’t caught up to my thesis yet.
No dry powder, and an early entry becomes a forced error. You’re stuck, underwater, with nothing left to act on.
Going All-In Is a Degenerate’s Move
Let me be clear…
Going all in on one trade isn’t aggressive. It’s reckless.
It might work the first few times. But that’s the danger… a couple of all-in wins will convince you that you’re bulletproof, and then one bad trade erases the whole run.
That’s a degenerate’s mindset, not a trader’s.
The gambler bets everything to feel something. The trader sizes every position so no single loss can end the game.
I plan to trade for decades. And I won’t last that long by betting it all on every position.
When SpaceX Hits, Stick to the Process
In a couple of days, SpaceX goes public. And the volatility is going to be electric.
Here’s actual footage of me tapping into the market tomorrow, June 12, amid the IPO…
I’m warning you right now: it will be tempting to throw the rules out and swing for the fences. Don’t.
Size down. Stay selective. Read the why behind every move. Keep your powder dry. And never bet your whole account.
This excitement is exactly when beginners start to break their own rules.
Profitable traders do the boring thing instead. They stick to the process.
That’s how I stay in the green. And it’s how you can too.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
