If you hadn’t noticed … the overall trend in the market has been shifting recently.
After more than six months of downtrends, it’s looking like the major indexes are finally starting to build some bullish momentum.
And as the market trend shifts, our trading strategies need to change with it.
After all, the markets are cyclical. Trends come and go.
My longtime buddy Tim Bohen understands this as well as anyone, which is why he’s currently focusing on a very specific type of setup — earnings plays.
Better yet, he’s teaming up with Dan Pipitone, Co-founder of TradeZero, to host a very special event outlining his current strategy.
Don’t miss The ‘Earnings Report Aftermath’ this Wednesday, August 3 at 3:30 p.m. Eastern. Click here to reserve your spot now!
Now that you’re registered, the bottom line is this: there’s never one pattern or setup that works well 100% of the time.
The key is learning how to adjust your strategy to shifting market trends. Keep reading and I’ll show you how…
Adapt to Survive
Adapting your strategy is crucial to market survival.
When a setup stops working, you need to have another reliable pattern ready to go.
Think of a golfer’s bag. They carry many different clubs and pull out the best one for each situation.
Growing A Small Trading Account? Check this Out
When multi-millionaire trader Mark Croock first started trading, he was an overworked and underpaid accountant…
So he knows what it’s like to start small while wanting to massively grow your wealth as quickly as possible.
That’s why he just recorded a step-by-step training that reveals what he believes is the best options trading method for someone trading with a small account.
Traders should prepare in the same way by developing a multi-faceted bag of trading tricks.
Years ago, I adapted to a changing market by learning to trade options. And it turned out to be the single most important thing I did to evolve my trading strategy.
That’s just one example of adapting.
I evolved my strategy because I wanted to expand the ways I could adapt to different market conditions.
Sound familiar? It should.
Market conditions have been shifting rapidly over the past month.
If you were successfully playing the markets in June — and you’re still trading the same way — you’re probably not doing so well in July and August.
Learn this lesson now — not every strategy will last forever.
As you progress as a trader, make an effort to learn multiple setups to help you trade through any market. It’ll only help you in the long run.
Why This Market is Perfect for Evolving
You’ve gotta constantly adapt and evolve your game plan if you wanna survive in the stock market.
This is especially true for my strategy, which relies heavily on following the hype in hot sectors.
A sector can be hot one week, only to go ice cold and gap down the following week.
Here’s an example: As geopolitical tensions mounted earlier this year, the energy sector went parabolic.
Makes sense. A supply shock caused a demand increase. Simple economics.
That said, a lot of traders got caught chasing the highs in oil stocks while the better play (in my opinion) was attempting to short the top.
Now, the major indexes are seeing the inverse move.
After finding a near-term bottom on June 17, the market continued to build momentum and make higher lows throughout July.
Stubborn short sellers, who may have been making a killing all year, started getting their hands caught in the cookie jar.
Bottom line: If you went net short in July, you would’ve gotten DESTROYED.
If this doesn’t show you the importance of adapting to shifting market trends, I don’t know what will.
I never would’ve survived 10+ years as a professional trader, earning nearly $4 million in the process, if I hadn’t adapted my strategy to the ever-changing market conditions.
Find the tools you need if you’re committed to trading the long haul. Don’t get lazy and think one setup is all you need.
Never get complacent and think your current strategy will work forever. Always be prepared to shift your game plan when the market calls for it.