Until recently, the buzz among traders centered around inflation and job data.
But now, with the escalating conflict in the Middle East, the focus has shifted to energy, defense, and security stocks.
The shift underscores a fundamental truth about trading:
The Market Never Stands Still.
If you haven’t adjusted or are still praying that the markets return to how they were in 2020 and 2021, you’re in for a rough ride.
So, how do you make the right adjustments, consistently improve, and flow with whatever the market throws at you next?
Table of Contents
#1 Pay Attention to Market Themes
Earlier in the year, the market was buzzing about AI companies and how it would revolutionize our lives.
During that hype stage, we saw many “AI” stocks skyrocket.
Those who caught the trend early could make some handsome profits.
Lately, we’ve seen short-squeeze plays being a dominant theme.
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— Timothy Sykes (@timothysykes) October 11, 2023
But themes come and go.
With all the unrest happening in the Middle East, there’s been a huge focus on defense, oil, and security stocks.
If you haven’t done so, take the time to build a watchlist of stocks in these sectors.
Things you should want to pay close attention to are market cap and float.
Typically, small-cap stocks with low share floats have a greater chance of spiking whenever there’s a catalyst.
#2 Focus On Price Action
There are times when stocks are trending, and times they’re not.
Are huge spikers following through?
Are we seeing stocks gap up and then fade?
Is dip buying working, or do stocks continue to get crushed?
There’s no universal law here…sometimes certain setups and strategies work well…other times, they don’t.
That’s why it’s so important you study daily.
So many traders are waiting for the 2020/2021 markets to return…and are making no progress.
So many people message me wanting 2020/2021 opportunities/returns again, but you can't go back into the past, all you can do is learn from it so you can be better prepared in the future! Whenever the next mania happens, 2024/25 or 2026/27, the question is…WILL YOU BE READY?
— Timothy Sykes (@timothysykes) October 10, 2023
If nothing is holding up, then be quicker to take profits.
The only way to know this is by reviewing the best trades and your own.
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— Timothy Sykes (@timothysykes) October 10, 2023
#3 Focus On Yourself
You should always focus on your journey first.
I trade to teach. I don’t trade to make lots of money.
That said, we could have totally different goals.
That’s why I don’t want my students copying my trades.
Always make the trade yours.
Learn from what I’m doing right…and learn from my mistakes.
You don’t have to trade every day, but if you can, study and learn every day.
This isn’t a sprint…it’s an ultra-marathon.
It’s okay if you don’t trade for a day or two because you want to collect your thoughts or if you have some personal things going on in your life that have you preoccupied.
Good trading requires a high level of concentration. If your mind isn’t in it…then don’t trade.
I’m constantly adjusting my trading to my hectic travel schedule.
Take care of yourself, focus on yourself, and don’t worry about how much money the next person is making or losing.
Ready to Master the Ever-Changing Market Pulse? 📈
In a world where the Middle East situation influences small-cap sectors and market themes are ever-evolving, it’s not just about tracking trends – it’s about understanding them before they become the mainstream focus.
🔥 Remember the AI stocks surge? The focus now is on the defense, oil, and security sectors.
🔥 With themes coming and going, are you equipped to stay ahead and adapt?
🔥 Realize that while the market never stands still, neither should your learning curve.
🔥 The key isn’t merely to observe and act with informed decisions.
But here’s the real question: How do you ensure you’re not just reacting but proactively setting the pace for your trading journey?
🚀 Delve into live market analysis and understand the importance of self-reflection in trading.
🚀 Witness firsthand how to turn market uncertainties into tangible opportunities.
🚀 It’s not just about making the trade, but making the right trade for YOU.
Are you geared up to chart your path, decipher the market’s nuances, and remain unfazed by its curveballs?
Your Ultimate Guide to Navigating Market Volatility is Here.