In a market showing signs of volatility, you must have the willingness to not only be flexible, but a willingness to practice patience while waiting for ideal entries. This is a good environment to be “balanced,” with a few long positions in bullish stocks or sectors and a few short positions in bearish stocks that are breaking structure.
Google and Amazon were very profitable trades for us in April. Profitability had nothing to do with the stocks and everything to do with the structure of the environment. As traders, we don’t want to fall in love with the stock. Instead fall in love with high-probability setups, entries, and exits. Once the structure that served us well is no longer present in a particular group of stocks… we should no longer be present either.
Stay Focused!