PRO 4/13: Lusso's Options

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How Do We Trade In The Current Market Conditions?

The big issue amongst many traders is that they crave action. When an event happens they feel like they must trade, when volatility arises they feel like they must trade. This is the trader who seeks reward first and not risk first.

The first step to trading the current market condition is to know your edge and trade your edge and don’t trade unless it is your niche/edge.

The issue is, many do not have a edge. Many people think that if the chart looks good then its a buy but, that is not an edge. You will never make it in the long term as a trader unless you have a edge, a niche, a specialty.

For example, for myself…I trade momentum. I prefer to catch a stock as it is coming out of a base backed with a strong fundamental thesis. I do not have a edge trying to trade a falling stock such as $ZM but, I have a edge trading a stock such as $VRTX. I want to ONLY focus on a handful of stocks that meet my criteria and not be concerned with stocks that do not meet my criteria.

So as with any market environment you need:

1. Extreme patience

2. Extreme discipline

Trade as if you are retired and you will not come out of retirement unless the potential trade looks so appealing that it forces you out of retirement.

Trade less, don’t overtrade.

Trade less, don’t overtrade.

Trade less, don’t overtrade.