≈ Embrace it and learn from it. ≈
Markets have been swept up in bearish sentiment for most of the week as the prices across most stock indices dropped sharply.
The fear of losing money is real because losing money is painful. Nobody likes to do it. Which is why there’s a saying that’s been around trading floors for decades.
‘There are old traders, there are bold traders, but, there are no old and bold traders.’
The opportunities in markets are incredible. Trading successfully and building profits can change your life for the better. But, there are limitations to what the market can produce. There are things it ‘cannot’ do.
- Markets are not an ATM machine that will give you automatic profit
- Markets do not have to behave based on any of your personal logic
- Markets do not have to be rational
- Markets do not have to come back to give you an exit point you feel good about
When you start to take on risk in the market it is critical to execute your trading plan and avoid overleveraging or taking on excessive risk. Position sizing and money management are some of the most important components of any trading plan.
But, sometimes it’s hard to understand everything happening in front of you if it’s happening quickly. Which is why we have Tackle Trading. On any given day, you can get support and help from the Clubhouse by posting a question, from the Coaches Lounge by attending and asking questions, from email and customer support or from the team. Reach out, participate and ask your questions.
We want you to be an old trader, who has a proven business model, understands the complexity of markets while also having the confidence in your system. We know you can do it. Let us know how we can help when you need it. Because remember, there are also some things about markets that are amazing:
- Markets give you the ability to build wealth
- Markets offer better long-term returns than almost any asset class
- Markets give you the opportunity to build income through trading, and you can do it on your terms
This week might have beaten you up, it might have given you a flesh wound, and it might have even offered you profit. Learn from it, respect the volatility and learn to manage risk.
Chart of the Day
Forward Focus
Video of the Day
Developing As A Trader
This is the 6 step process you will go through if you do this correctly:
- Education is first.
- Design is Second
- Testing is Third
- Paper Trading is Fourth
- Live Trading is Fifth
- Review and Adjust is Sixth
Today’s Lineup
Options Theory
Thoughts About Market Crashes
Yesterday’s sucker punch has left bulls dazed and confused. Is this another in a long line of market corrections that will eventually give way to new highs? Or, is it the beginning of the end to our long-lasting bull market?
Unfortunately, nobody knows. Insert unsatisfying quip such as “time will tell” here.
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cashflow Club Replay
Last night, your host, Coach Tyler Craig, talked about credit spreads.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
