Timing Market Chop

Hey Market Pilots,

The market has been changing character lately and we know it. When this happens, there can be a lot of untradable time and you need to know what to do in this situation. Sometimes that means going down to lower time frames to be more nimble, or raising your time frame to slow things down.

Some traders really love chop, flagging, or a stock that is range-bound because they can be very active. They can see where price is going to turn and enjoy taking a day or a few-day-long trade. It’s exciting and keeps them entertained. If this is your style, then we have had that in spades for most of February, and the market recovered from a really oversold condition. 

Others don’t have the resolution to be able to see those twists and turns, or maybe can’t be at the computer all day to ride these moves. So in that case, zooming out to larger time frames to see the bigger picture is more suitable. It also means traders will have to handle some volatility in their account as the price oscillates a lot. But if they are eventually correct about the next major direction, then their trade worked out and they had to do little to make it happen. 

Each trader has their preferences, and we are seeing that bifurcation this month. If you are still learning about the various paths you could take as a trader, paper trade both and see how they work with you. Or simply watch and observe while the craziness happens.

Either way, this choppy environment will happen again in the future so this is a good lesson for the ways of the market.
Your Profit Pilot, TG

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