9 Minute Read

Tackle Today: When Swing Trading Strikes Out

October 5, 2021

By | No Comments

≈ 4 tips for high volatility. ≈


Volatile markets provide a challenging backdrop for swing traders. As a result, the odds of getting whipped out of trades increases, and seemingly top-shelf setups suffer a high failure rate. To make the best of a less-than-ideal situation, consider the following:

First: if in doubt, stay out. There will be a delightful uptrend on the other side of all this drama. Playing it safe on the sidelines allows you to keep your financial and emotional capital intact, so you’re ready to rock when better conditions return.

Second: trade smaller. While adverse conditions persist, consider making smaller bets to minimize how much damage can be done to your account.

Third: be more proactive with bearish trades. Since bearish patterns are multiplying, now’s the time to play if you’re willing to embrace the short side.

Fourth: consider higher probability trades like credit spreads that don’t require as much precision and benefit from the elevated volatility.

We’ll continue to spotlight the best patterns in our Scouting Reports but realize that choppy market conditions make swing trading more difficult, regardless of how picture-perfect the setups are.


Chart of the Day

Stocks and Rates

Here’s another look at how interest rates are moving markets. Note the strong correlation between the ten-year yield and SPY. To make the relationship easier to see, yields have been inverted. When the red line is falling, it means interest rates are actually rising. In short, falling rates have been bullish for stocks this year, while declining rates have been bearish. I’ve said this before but will repeat it. If you want the stock swoon to stop, then root for rates to chill out.

Video of the Day

Onboarding With Coach Frank

Each week Coach Frank walks new members and visitors to Tackle Trading through all of the features that Tackle Trading has to offer. Watch the video above if you want to check out last night’s onboarding session with Coach Frank.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Halftime Report 12:30 PM 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.

Coaches Show 8:30 PM EST

Join us every Tuesday at 8:30 PM EST for the Coaches Show! Tonight Coach Gino and Greg will be hosting the event.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.