Surfing with sharks
... I mean “trading sharks”
What do you do with a light market volume week?
We had such a week last week (as happens nearly every year around Christmas & New Year’s).
The big institutions take a break and the remaining retail traders squeak out moves.
If you’re hopping in every day, you might see some crazy movements.
(note: we’ve only see the market trading sideways so far, no crazy flash crash or melt up, yet.)
If you’re a short-term trader, it could be frustrating to watch.
There’s just no conviction in the movements out there because the volume is on vacation.
To me, that’s a hint.
Most of the trading that I do is eating the scraps from the sharks.
🦈
What I mean is, the big institutions — hedge funds and the like — move so much capital in and out that I cannot hope to compete with them.
So, I don’t.
Instead, I like to try and align myself with what I think they’re doing and eat a little bit of profit from the moves they drive.
It’s not a perfect science, but in my opinion it’s a better plan than fighting them.
I’ve seen a lot of bears get pummeled in a bullish market — and especially in short squeezes. Anybody that’s been short on gold & silver recently is either feeling the pinch or has already been completely wiped out.
It’s hard, Hard, HARD to predict when the market will pull back.
But it’s pretty easy to be patient through the pullbacks and ride the bullish waves.
That’s why I prefer to trade a bullish strategy.
I have a whole video inside my “Options 101” mini-masterclass talking about this. Showing you the data on why I believe trading in a bullish manner is the smart move.
I give anyone on my email list complimentary access to that mini-masterclass.
You can knock it out in the next 30 minutes, if you wanted to.
Start by subscribing here:
— Ricky Ketchum