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3 Trading Tips To Help You Overcome Trading Fears

Jun 01, 2020
 
Do you feel like sometimes you're trading in the darkness? And even though Leonardo has been telling you philosophy days that the market was going to hit all time highs, and it is hitting all time highs again today, do you feel sometimes when you trade you are in complete darkness? And do you start hearing voices after you get in a trade? Why did you do it? Your account is turning red. You need to get out now. Right now, get out of this trade before you lose even more. The good trades that you are in, all of a sudden you're out of them. You're looking at the market and just on a one day, one minute chart, just a four point drop an S&P 500 is driving you nuts. It just looks like things are about to crash. And there you are. You're jumping out of your trades and what are you doing? You're buying boots. Why? Because you're scared, because you are fearful.
Guys, in this video, we're going to share three very basic fundamental things with you on how you can conquer your trading fears. And if you'd like more information, you can check out some of the courses by clicking the links below to get more details on conquering your fear in trading. Guys, it will happen to you each and every time if you let it. The market is a very tough challenging mental game and it's going to challenge you each and every day, so you've got to master the skill of conquering the market challenge that it's throwing at you each and every day. So the three basic things I'm going to describe, they're not being crazy. You can actually start utilizing them tomorrow. That's how simple and basic they are. But first, let's get an understanding that many traders feel that way.
I talk to many traders each and every day and one of the main comments is this, "Well Leonardo, I get into my trade and the moment it starts going against me, I freak out. I get scared. When I start seeing my account going in the red. I freak out. That's what happens. And so I start doubting the trade that I've just taken. And then what I want to do is just I just want to get out. I want to count my losses. I just want to get out and typically as soon as I do, the trade starts going my way." So guys, the very valuable lesson here is to understand, if you've done your calculations behind your trade and you spend some time investigating and you understand the reasons why, you're not going to get freaked out so easily, okay?
And the market is going to have a very difficult job convincing you and making you doubt yourself. So the worst thing you can possibly do is doubt your trades. Just think about all the trades that you have jumped out of that actually ended up stellar trades. And then you were just sitting there thinking, "Oh my God, I can't believe I got out of this trade." So write these three things down guys. They should really make life a lot easy as a trader. So number one is VIX. VIX is typically known as the fear factor but what it really is it's a barometer, if you will, of what institutions are expecting the markets to do. And clearly when there's a lot of political events, when there's a lot of economic data that could sway the markets to either direction, trade wars, you name it, all the stuff that you hear about, most of the people talk about in the news, VIX is pricing those things in.
And so it's very important to pay attention not to just where the VIX number wise, which historically it has been as high as a hundred and the lowest the VIX has ever been is nine, like 8.9. But just understand this, the very basic formula for trade in an environment like this right now when VIX is around 12, 13, 14 basically the market is really telling you that the probability of the market crash is almost nonexistent. And what validates that is not the fact that VIX is just 12, 13, 14 is the fact that it has been consistently creating a down trend over the last two weeks. If you study the chart of the VIX, you will actually see that it has consistently been dropping and dropping and dropping, and in the last few days, particularly hitting these levels in the 12 handle, which we have not seen in a year.
Guys, so this is very important because it fits the historic analog that we've shared with you guys in our 13 Markets Move formula analysis subscription. We've shown you the analog of how the current
situation highly resembles that of December, 2017 and January, 2018. VIX environment was very similar and that actually created substantial upside for the markets. So point number one or the tool number one to help you keep your fears in check, is actually check the fear index. Okay? If it consistently creates a downtrend, then you know when these intraday pullbacks happen and you begin to freak out, look at the VIX. If it's down trending, there's no reason to be fearful because clearly at that point the market is not fearful. All the institutional investors are not fearful. The only person who is fearful, guess who. You. So stop it. Keep your fear in check by paying attention to the VIX, guys.
All right. Point number two, and I've stressed that in many of the media was before, guys. It's very simple, right? Pay attention to the volume. Guys, remember this, markets do not crash on low volume, and so when you see those intraday pullbacks, it's actually really easy to calculate the volume. And it's not the volume itself that you need to pay attention to, but the rate of change in the volume in the context of the duration of last five to 10 days, one month and so on. So if you understand that, okay, then your job as a trader becomes substantially easy and you not going to be freaking out by paying attention to these simple observations. Now, if you're new, if you're trying to make sense how to make this volume observations work in your favor, simply click links below, especially in our Trading Like a Rock Star course.
We spend a lot of time showing you all the details, all the insides and outs on how to first understand the volume, how to make good trading decisions based on these volume observations and key stocks, indexes and so on. So if you are not at that point yet where fully understand it, click the links below. Take advantage of the Trading Like a Rock Star course, which is also going to teach you a lot of stuff, really cool stuff, guys, about trade in the earning season, which kicks off next week. So do it now so you can be ready to set some records during this earnings season. And point number three... So the tool number three guys, the most powerful tool of all things which actually combines not just the first two points I described but a lot more of course is the 13 Markets Formula because at this point we're paying attention to specific institutional behavior on one day sequence on two days sequence, five day sequence.
You've probably seen me post some crazy media was on the market moves seven, seven, seven. Believe it or not, since then we've had a sequence of eight bullish days in a row. The formula works insanely good, guys, if you understand being tire formula. Not just what market move it is, but how to make sense of the sequence correlations in regards and respect to the VIX environment, how to actually apply it in combination with the institutional buying or selling activity on the one day moves, two day moves and five-day moves sequences. So you really got to get entire understanding, which we described in our course. It's about six hours, guys, but it's the best six hours you can invest in yourself if you're trying to take your trading game to the next level.
And with that said, guys, if you understand what a move seven is, it's institutional buying behavior type moves. So all the intraday pullbacks that you might've gotten scared by yesterday. Okay? They ended up in the markets rocketed higher today and setting another high. So if you just how to trade the move seven, you will be able to conquer this market and trade fearlessly. With that said, guys, I'll catch you on the next trade in the next video.
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