(Video: Market coach Doug Hirschhorn, PhD, advises investors on how to navigate this tricky "traders' market.")
As you’ve probably heard by now, we’re in what’s commonly referred to as a “traders market.” This type of market is tricky even for elite traders, which is why I want to share with you four things you need to keep in mind to be profitable.
- Take a tactical approach Like a surgeon, you have to pay close attention to where you enter and where you exit. One small mistake can cost you big time.
- Get bigger quicker These types of markets don’t allow traders the luxury of scaling into positions. Rather, you have to know what setup you’re looking for and when it appears, you want to hit it big because it may be the best chance you have to get in on that trade.
- Use tighter stops In trending markets, you have time to let your trades breath so you don’t get squeezed out of them. Unfortunately, that’s not the case in a “traders market.” In this market, tight stops will keep you in the game longer and right now, the traders making money are the ones who are able to survive the quick moves.
- Your intuition will show you where to find profits I’m talking about that feeling you get inside when you think now is the right time to get in the trade. If you want to be successful, you need to pay attention to your gut and then, most importantly, follow it.
The biggest mistake a trader can make is to have a great idea and not have the confidence to put it into action. Do not be that guy.
Think better, invest smarter.