Good day, Y’all! A lot has changed since the last blog post. We were talking about doing a naked put on a stock because it was in the consolidation phase and that is one of the trades we can use during those times in the market. As often happens in trading, things can change quickly and sometimes that can mess with our trades and other times it has no effect.

The change I am referring to is the slide in the overall market that has accelerated since this time last week. Last week at this time the SPY was happy go lucky and making some nice green candles and fast forward to today and that same index is pushing down hard on an important support level. So what does this mean for us? Well, typically when the indexes start to tumble the majority of stocks can also feel those same effects. The other thing that happens is that the volatility picks up which we spoke about when reviewing the different phases of the market. For that reason I won’t go over that here as you can go back to the previous few blog posts and see what effect that has on equities in general.

This slide could have some interesting effects on traders as well as the overall markets. I have been conversing with some of my trader buddies and some newer traders as well and there is a real mixed bag of euphoria and fear in the markets right now. The more experienced traders are salivating at this new found volatility and the newbie traders are asking themselves what they did to deserve this insane movement. It is totally understandable that newer traders would be feeling the fear as we often fear things that we are unfamilar with.

There are some things that we need to do and remember when times of increased volatilty and downward pressure show up. The first is we need to relax and take a deep breath. Panic is never good and should be the other guys problem. We as Tackle Traders know that if we have formulated a solid plan and stuck to that plan then we will weather these turbulent times and dare I say even prosper from them. Now, if you happen to be one of the few that don’t have a plan then you need to learn how to do that quickly and there is no better way to accomplish that than to get over to the Tackle Trading website and get signed up for the S.T.E.P system webinar on June 5th, 2019.

The question we have now is what did this recent downturn do to our plan? Remember, we were doing a bullish trade, namely the naked put. We should also remember that the naked put trade can win one of three ways, up is good, sideways is good and down a little is ok. Check out the video to see what happen with our trade and what we need to do next.

Until next time, be calm and trade on!

Coach Holmes