Understandably, a lot of inexperienced traders might struggle to survive, let alone thrive, in this market environment. But paradoxically, it is exactly times like now when some experienced traders tend to do very well. So, to help reduce your learning curve, I have put together this video showing how I typically look for trade ideas and manage risk, using example of my recent trades in my private group, all to help you spot similar opportunities in any market that you trade.
Whatever the market conditions, the way I see it, you have to be in tune with the market fundamentals and thus have a strong bias in terms of which direction you think the markets should be headed based on X, Y and Z. And equally, you must be open to the possibility to be completely proven wrong.
You then use your favourite technical analysis tools to look for entry and exit levels. For me, the entry has to be as close to support as possible in a rising market and, as close to resistance as possible on a falling market. My profit target(s) are typically around levels where trapped traders’ stop loss orders might be resting. That’s because the market is a function of liquidity. It moves from one area of liquidity to the next area of liquidity. Typically, these areas tend to be above or below price ranges. However, my targets can also be based on the nearest trouble areas (for example, near a recently broken support level on long trades).
So, this video is, above all, an educational one. I wanted to share examples of how I look for trade setups to help you spot similar opportunities in any markets you trade. My aim is to shorten the learning curves of new traders. There are lots of lessons in this, so I hope you take something on board!
The start of the video shows some of the highlights of the recent trades I will be talking about 2 minutes in.
This is no different to how I look for trade ideas in normal times. You can refer to THIS article to see lots of more examples of my trades and how I managed their risks.
But as you will see in the above video, I have slightly wider profit targets when markets are a little more volatile as markets tends to have larger daily ranges than usual.
Obviously there are many other ways people trade. It is not a one-size-fits-all business. It is a moving business, and when markets are highly volatile, like in recent days, certain strategies can excel as ranges expand.
So, I hope you find the content useful and helpful in your trading journey.
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