Hey everyone, Ross Cameron here! Today, I want to share my thoughts and experiences from a particularly chaotic day in the market. My trading setup wasn’t ideal, as I was traveling and trading from my traveling station. However, what made this day remarkable wasn’t my location but the sheer panic that gripped the market. From plummeting Japanese stocks to a massive selloff in the S&P 500, trading conditions were incredibly volatile. Let’s dive into how I navigated this turmoil and managed to stay in the green.
Trading Setup and Market Panic
First off, let’s talk about my trading setup. Despite being on the move, I love the flexibility that day trading offers. Typically, my traveling trading station gets the job done just fine. However, the panic that hit the market caught me off guard. The Japanese Market plunged by 12%, a massive drop by any measure. The S&P 500 also took a huge hit, continuing a selloff that began late last week. We opened the day near the lows and experienced a quick rebound, which was a bit of a relief for me.
Factors Driving Market Panic
To set the context, the market had been strong for a while, driven by tech stocks and other sectors. However, rising inflation and high interest rates have started to take a toll. Despite the Federal Reserve’s initial belief that inflation was transitory, it persisted. In response, the Fed jacked up interest rates to the highest levels in decades, putting pressure on companies and consumers alike. This year has seen a significant number of bankruptcies due to the high cost of borrowing. Even the government, which often runs on debt, has felt the squeeze. This environment set the stage for the panic selling we are witnessing now.
Historical Context and Federal Reserve’s Role
The Federal Reserve has historically had a huge influence on the market. Their actions, whether it’s raising or lowering rates, have profound effects. For instance, the de-industrialization of American manufacturing in the 1980s and the policies leading to the Great Depression in the 1930s provide cautionary tales. Cheap money policies led to market bubbles that eventually burst, causing widespread economic hardship. Today, the Fed’s policies are again under scrutiny as they navigate the current financial landscape.
Navigating Market Volatility
So, how do we trade in such a volatile market? High interest rates mean you could get decent returns from treasuries without taking on the risk of the stock market. However, for those willing to take the plunge, opportunities exist. Even in panic, stocks will find support levels and bounce back. For instance, when selloffs happen, it’s often a good time to buy, as the market will generally recover. My motto during these times is to remain cautious but ready to act when opportunities arise.
Trading Strategies and Tools
Monitoring the market closely using scanners and trading tools is crucial. On this particular day, I traded stocks like MGOL, SNTI, and TENK. MGOL was my first trade, but it didn’t yield much profit. I then moved on to SNTI, which gave me a small loss. Finally, I found opportunity in TENK, a recent SPAC, which surged dramatically. These trades require quick decision-making and the ability to read charts and market sentiment effectively.
Reflecting on Trade Outcomes
This wasn’t an easy day. I started the morning with minimal gains and faced challenging market conditions. However, by sticking to my strategy and staying disciplined, I ended up in the green by +$3,813 (results not typical). The big move in TENK, although somewhat unexpected, provided a nice boost to my overall results. Trading days like these highlight the importance of preparation, risk management, and the ability to adapt to changing market conditions.
Looking Ahead
The day’s events serve as a reminder of the volatile nature of the stock market and the impact of macroeconomic factors. The Federal Reserve has tools to navigate through these turbulent times, like cutting interest rates. However, as traders, we must remain disciplined, stay informed, and be ready to make quick decisions. If you’re interested in day trading or improving your trading skills, now is a great time to start learning and practicing. Check out my 14-day Warrior Pro Preview here.
Conclusion
Day trading offers incredible flexibility, but it also demands a lot of attention and quick decision-making, especially during times of market panic. My results today were favorable, but remember, these aren’t typical. Everyone should practice and gain experience, preferably starting in a simulator. The key is to stay informed, manage your risks, and continually learn from each trading session. (Results not typical)
Thanks for tuning in! If you’re eager to dive deeper into day trading, check out the resources and memberships we offer at Warrior Trading. Remember, trading is risky, so take it slow and always practice in a simulator before putting real money on the line. See you at the next recap!
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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross
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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.