How you find more trading opportunities in this market

I was on a phone call with a former *star* futures trader who blurted, “this is the worst market I have seen in my life.”  He was referring to the lack of movement in e-mini futures.

During a private coaching session with one of our better senior traders, that trader stressed, “patience is the key in this market.”

One veteran trader with whom I gchat regularly has lamented, “I am just waiting for my market.”

Count me out as one who does not see trading opportunity.

We trade Stocks In Play and are not as reliant on overall market movement or direction for opportunities.  Having said that, it is crucial for firm traders to find new areas of edge.  Many have EXPANDING THEIR PLAYBOOK as their primary goal, in this market that rewards less trading and a sniper’s precision.

Last week we saw excellent improvement among some firm traders, who expanded their PlayBook.  How?  They found a setup similar to their favorite trade in a different types of stocks.  They built from what they do best and expanded it into another cadre of stocks.

So an example comparable to how these firms traders made progress in expanding their PlayBook would look like this: Let’s say that you trade a breakout pattern very well in high beta names.  Consider trading select break out opportunities in large cap names.

Generally, I see/hear/read traders struggle applying setups with very different buckets of stocks.  They place trades in high beta names the same way they do large cap.  They short low floats the same way they do high beta.  From my seat, that does not breed good performance.

But I do see traders able to take their best setups in a bucket of stocks and apply them to another bucket with increased selectivity.  And we see that working on our desk.

Try this to expand your PlayBook in this market.

  1. Ask: what are my best setups?
  2. Ask: what is the most similar next category of stocks I can apply my best setups?
  3. And then apply your best setups on that next category with selectivity and precision.

As always, I welcome your feedback and/or questions at [email protected]

Trade well!

*no relevant position

 

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