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Navigating some of these extreme price swings in the market can be pretty daunting to a lot of people – even downright confusing.
Now we'll probably see this volatility continue as we wait to see what happens in The Fed's meeting on Tuesday.
We'll also likely continue to see some uncertainty in the markets surrounding President Trump's next steps for his aluminum and steel tariffs.
But whether the market swings 1,000 points down or 500 points up, there's a surefire way to survive these markets – and turn a fast profit, too.
Check out this simple little volatility trick…
Plan Your Trade and Trade Your Plan
This sounds easy enough – and it is.
But there's a little more to managing your trades than you might initially think…
Trade management involves using price and time targets to maximize your profits and minimize your losses. And the best way to do that is to establish these targets first.
Your price target is the price you need the stock, exchange-traded fund (ETF), commodity, or whatever you're trading to hit in order to capture profits. Your time target is the time frame in which you need to hit your price target. You can set both of these targets easily by looking at a stock's past price moves and patterns and eyeballing the time frames in which the price moves you need to happen.
When you've got your plan in place and stick to your guns, you can feel confident about what you're doing and can set yourself up to make money no matter if the markets go up, down, or sideways. It also allows you to remove the emotion from trading and investing that can potentially sabotage your profit opportunities. It gives you control of the markets instead of leaving you at their mercy.
You shouldn't change the way you trade regardless of the market temperature. So shut out the FOMO, the talking heads, the flashing red headlines, and the constant dialogue about the "next big market crash" – and follow your rules and strategies.
The profits will come quicker than you can imagine.
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.