Good afternoon, traders.
With all the disruption happening in the markets, now is the perfect time to talk about the macro environment, trading psychology, and a few important tips to lean on in these tumultuous times.
This is especially true for young traders who haven’t really seen harrowing markets, where everything feels like it might just hit bottom.
Normally, when I do these reviews, I talk about numbers. I go through charts and discuss entries and exits.
And then I talk about fundamentals, or maybe an economic event or an earnings report.
Not today.
We’re in a different market right now.
Now, I’m going to talk to you about trading in a crazy, high-volatility market.
First, my message to newer people having a hard time, or having trouble handling all of this, is to take a pause.
You know what you’re supposed to do. You’re getting great trades from your mentors, but maybe you’re not executing them.
My message to you is to sit it out. You don’t have to trade this.
If you can’t handle what’s happening right now, if it’s too hard for you, if it’s too nerve-wracking, if it’s just too harrowing — chill out.
Because the other side of this, when things calm down, is going to be easy money.
So, if you’re experienced, if you know how to trade volatility, if you know how to fight with both hands, crush it, kill it — go for it.
But if you can’t do that just yet, don’t feel bad. It’s fine.
Because the other side of this, the easy part of this, is where you have to be fresh and you have to be solvent.
You have to have dry powder. You have to have cash and capital on hand.
So, don’t miss that part because you’re trying to surf waves that are too big for you.
Understand what I’m saying? I’m deadly serious.
And for those of you who are crushing it, always be cognizant of the fact that you still need to be disciplined. Euphoria will also put you on tilt.
Making a lot of money in a short period of time can cloud your judgment.
So, emotion — bad emotion and good emotion — will always ruin your trading strategies.
Strong emotions will always inhibit what you’re trying to do. How you’re trying to execute your trades.
If you’re feeling emotional, you can walk away. Even if you’ve had big wins.
Capture the wins. Go play some golf. Take a trip. Go to some fancy restaurant.
Take a break. Take a pause. Because the other side of this is going to be more stable.
It’s going to be less newsy.
Don’t let the news get you down. It will drive you nuts if you let it.
The world will be fine.
It always sorts itself out, so let it go, guys.
Have a great weekend and touch some grass.
And while you’re taking time this weekend to take it all in, check out my #1 strategy for this ultra-volatile market in Burn Notices.
They’re quick, overnight options trades that won’t overexpose you to broader market risk.
If you want to understand exactly how (and why) these trades are perfect in this environment …
Join Danny Phee for a LIVE BURN NOTICE WORKSHOP … TOMORROW, April 5, at 4:00 p.m. EST.
Stop guessing, start burning — Click here to reserve your seat.
Happy trading,
Jeff Zananiri
*Past performance does not indicate future results
