The Dow dropped 40 points on Monday, rallied 350 points over the next two days, declined 230 points on Thursday, and then exploded 300-points higher on Friday.

 

Traders love a trending market. We prefer to spot an early developing trend, take positions, cash out.

 

Trading a choppy market – one that gaps higher or lower and reverses direction nearly every day – is a lot like trying to talk religion with a Presbyterian Rabbi in Jesuit school. Nothing makes any sense.

 

But that's the market environment we have now. And traders need to adjust.

 

In a trending market swing trading is the norm for many traders and maximum  profits can be the rule. But in a choppy market, traders have to be willing to accept something less than 100%.  Otherwise the market will take the gains away from you. The market gods won't let you do that... They'll laugh as they turn your winning trades into losers. The best way to navigate is to tighten up your expectations and be willing to cash out a little earlier.

 

You won’t sell at the absolute best price but you’ll do a heck of a lot better than the alcoholics in the trading pits.

 

Trade well

Ric