Another ugly day out there. Look at the S & P 500 and listen these days happen.. We had a big bounce day yesterday after the fed, but these things happen, and one thing you got ta remember is the market is always right.. Now you know, if you know the channel, if you follow me, you know I'm generally still very bullish..

I don't think a couple shaky weeks marks a shift, a fundamental shift in the market., But the point I wan na talk about today is you have to control losses when the market goes against you. And you have to manage those losses. And when that managing those Losses is sticking to the plan and sticking to a manageable loss. And I'm giving you five techniques for dealing with that.

Cause. Remember losses are part of the game., Something that you may roll your eyes. When I say this, if you've been around but you'd, be surprised, I mentor a lot of new traders and a lot of people will, whether it be a core pattern or a box checker. As we like to say, they'll be like hey all the stars were aligned on this trade and it didn't work..

What did I do wrong And I always preface it by saying: listen: you're not gon na like this answer, but you went through the process. You checked all the boxes. You found a good setup with news with the catalyst with good float rotation, with good volume, a beautiful chart. Everybody was tweeting about it.

Everybody was pumping it all. The stars were aligned and then some bad news comes out. Market tanks and you can still be right, but ultimately you have to take that loss because losing is part of the game.. Nobody wins a hundred percent of the time.

And again you may chuckle at that statement, but a lot of people I think, expect either. I hope no one expects a 100 % win rate., But I think a lot of people expect nine out of 10 or 95 out of 100 or something.. I mean listen when you're trading, especially these extremely volatile stocks, that most you're looking at. If the petty stocks, you got ta, be okay with losing.

And you have to be able to lose and understand. I mean look at yesterday. It was a death drop for two weeks, all the way down to 405 on the S & P., And then yesterday we had that good fed announcement ripped all the way back. Things looked like we were back.

And then today, big gap. Down. I mean when you're talking these volatile markets, you can't overstay and you can't fight the market. All right.

That being said, what are the five ways to deal with these losses and deal with these very volatile markets? Number one scale back. And when I say scale back two things not only number of trades., So what I want you to do until the market' pick a direction and we've been very choppy all of 2022 really.. I mean again, let me zoom out and get a year to date, chart of the S & P.. I mean look at it.

It's basically look at this mess.. I mean we're stuck in this range.. You've heard me talk about that 420 level. Respect to Elon.

Elon will save us. We will maintain 420 on the S & P 500 if we are in a simulation and Elon is in control of it. Anyway, but I mean basically, we've been bouncing off this 420 level and we've been stuck at that 450 level. For I mean it's May here we are May 420 to 450 for basically six months.

I mean couple weeks - is gon na be six months into the year., So in these shappy markets, when I say scale back less trades, be extra extra selective. Back to that box. Checking thing. You'll hear me say that all the time.

We have a process in the SteadyTrade Team check out the SteadyTrade Team.. We have worksheets, we have a methodology and we literally check boxes. Something that we do to select trades. Is we go through a process and there are worksheets available in the SteadyTrade Team that help you be selective., But also when you're trading, fewer trades, but less size.? I mean when we're in these whipsaws markets.

Things move fast to the good and to the bad.. So if you're trading too big a size you're taking losses that you don't need to. And ultimately, if you're right, if you really catch a really good runner, you don't need crazy, size.. I think of well look at CYN, even today, even a terrible day like today.

Cyn is ABCDN., It's a perfect. I mean recording at 2:19 PM guess what A stock that consolidated at VWAP has just broke. The high today., A consolidated VWAP B C broke the high of the day, even in the world, ending markets.. If you focus on those patterns, but you keep your losses small and you catch that big winner.

If CYN really rips, you don't need crazy, size., I think of like RDBX another example. Recently this stock has been several days of multiple dollars. A share. I go back to this would've been Monday., I mean Monday.

This thing did a dip and rip and went from six to 11.. You got a small account. You got a hundred shares., You catch multiple dollars of a move., It's not a bad day, again, small account or maybe at 500 shares. Maybe you got thousand shares.

Multiple dollars a share.. You don't need crazy size, less trades, more selective, smaller size.. Other thing is: look for other patterns.. I still think the dip and rips the ABCDs, the VWAP holes the week open red to greens..

I still think for now those are the best patterns., But there's a million different ways. To trade. - I mean VWAP reclaims bounces off of green to red those stocks that spike big the day before gap and go then pull back dance around that red to green and perk., I mean again, maybe stock big runner, yanks hard starts coming back to VWAP might Still be red on the day which you might be like, whoa wait, a minute Tim. Did you just talk about buying a stock red on the day again different markets, different patterns, but that VWAP reclaim on that big runner that pulls back..

So there's a lot of different patterns out of there., There's a lot of different techniques., Again cool thing about SteadyTrade Team: we're live every day, we're adapting and we're growing. Together. Next thing is: stop adding the losers. That it never gets.

Better., That might be the biggest post-it note I talk about. I don't know if you can see the whiteboard over here.. I have post-it notes all over it. Reminders rules, I'm big into can band boards and post-its., But the one biggest takeaway.

Maybe from this video. Never add to a loser, especially in volatile stocks.. I promise you - and this is what I want you to write on - that post-it note. It always gets worse., It never works never..

Well, I always like to avoid absolutes. I like to avoid nevers and always in life. Nevers, and always in trading but 999 out of a thousand times adding to a loser in penny stocks always gets worse.. Next one leave your emotions out and cut it quickly..

How do you leave your emotions out? I get it you're new to trading, maybe you're struggling with your controlling your emotions, but I am telling you write your plan. Down. I use index cards, I use post-its.. If you can't fit your trade plan, entry stop goal.

And what you'll do if it goes sideways? You can fit that on a post-it note, you can fit it on an index. Card.. You go back my social media. It was a technique I developed about 10 years ago..

I would put my plan on that index card when I was in the trade, and I would stick it in the function key row of my keyboard. And it would stare me in the face. And that plan written down. There's something to be said from tactile.

Putting it in ink and that massively improved my ability to stick to a loss., I don't know why. I always joked like that. Index card would be like laughing at me, like a cartoon where the inanimate object comes to life. The index card's, like ha ha you're.

An idiot. You let your stop slip. Again., Hey moron! You wrote down. You were gon na stop at four and you're still in at 350..

So I think that writing things down. First of all, have a plan. A lot of people. Don't even have that they just hey I'll, buy it and I'll sell it.

When I'm green. Have a plan but write it down., I think that's very, very powerful. And then the next thing is get a mentor.. Listen, volatile markets, crazy out there.! You don't have to go alone..

I mean you're here on the channel for a reason., Maybe you're, on pre-market prep 8:30 Eastern Stocks, Trade Advisory, the SteadyTrade Team, I'm telling you. And again find a mentor., I mean listen. Maybe you can't stand me.. Maybe I yell too much.

Maybe I rage too much.. Maybe I make too many dad jokes, or maybe you don't like penny stocks., Mostly. What I do is focus on low price, big runners., Here's a good example.. I can't remember the last time I went anywhere near an OTC stock.

If you're interested in OTCs Tim Sykes specializes in OTCs. Check out Tim Sykes. He is a buddy of mine, he's partner of mine, he's the OTC man. Again.

I can't remember the last time I went anywhere near an OTC., So find a mentor that matches your style cause. You don't need to go in alone. And I'm telling you're making it way. Harder.

Check out the SteadyTrade Team.. I think I'm a little biased., It's the best mentorship program out there. Two webinars a day, every single day over 3000 webinars in the archive and still going strong. All right, stay safe out there, my friends as we head back towards new lows but again stay safe Out there be agile., Remember all the rules we talked about and yeah there.

We are getting ready to take out the lows., But there's always a trade.. I mean listen, BTTX great runner. Today, CYN ABCDN beautiful, look at that., There's always a trade. So have a great day.

We'll see you next time.