Adapt and Thrive: How to Shift Your Strategy to Fit the Current Market

[Image] Adapt and Thrive: How to Shift Your Strategy to Fit the Current Market Listen… I want you to really think about what’s happened in the stock market over the past two months… From July 27 to October 3, it was all doom and gloom as the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) shed more than 8%. The indexes continued sliding further down with no bottom in sight … until the end of last week. On Friday, October 6, the market blasted off following the release of the September Jobs Report. And I don’t mean to brag, but I called it… I told you that the easing of uncertainty around the jobs report would likely lead to a market rally … and that’s exactly what happened. But now, that trade has passed us by. It’s time to tackle a new beast — adapting to the shifting market conditions. With that in mind, keep reading and I’ll show you how to adjust your strategy to fit the shifting market conditions like a Wall Street pro… The Market Doesn’t Care About You (or Your Money) First, I’d like to let you in on a little secret that I wish I knew in my early days… The market doesn’t care about you or your money. If you’re looking for a fair fight, the stock market’s not the right place for you. You can’t compare yourself to everyone else or try to make excuses. You have to understand what’s in your control (and what isn’t). Then, learn how to use what you can control to your advantage. Most people never realize how to do this. And to me, that says that too many traders don’t understand the reality of trading… Trading is one of the most bizarre jobs you can have. You can find the perfect setup with the best catalyst, enter the trade with an ideal chart pattern … and still lose money. With most jobs, if you do everything well, you get a paycheck. You could even get a raise or a bonus for stellar performance. But trading requires a different skill set than any other job. It requires long hours of hard work with no guarantee of financial reward. You must understand this harsh reality to succeed as a trader. You’ve gotta live for it. If you approach your journey to profitability with a slow and steady discipline, the eventual rewards can potentially exceed anything you’d ever imagine working a day job. And this slow and steady discipline requires that you harness another important skill… No Trend Lasts Forever Adapting your strategy is crucial to market survival. If you haven’t noticed … the overall trend in the market has been shifting recently. After more than six weeks of downtrends, it’s looking like the major indexes are finally starting to build some bullish momentum. And as the market trend shifts, your trading strategy should change with it. After all, the markets are cyclical. Trends come and go in the stock market just like they do in fashion. But when a particular setup you’ve been trading stops working, you need to have another reliable pattern ready to go. Are there any golfers out there? Personally, I love golfing… Now, think of a golfer’s bag… PGA tour pros carry many different clubs, knowing exactly which one to pull out for each specific situation. As a trader, you should do the same. Build out a diverse tool belt, or ‘bag of tricks,’ that can potentially benefit from different market conditions. Why am I saying this now? Because market conditions have been shifting rapidly over the past month. If you were successfully shorting the markets in August and September — and you’re still trading the same way — you’re probably not doing so well in October. Learn this lesson now — no strategy, pattern, trend, or setup will last forever. For example, this week, the conflict in the Middle East has caught global markets by surprise. But when the news came across my screens, I immediately knew what I needed to do: I needed to switch my game plan up, pull a new club out of my bag, and turn my attention in the direction of one particular commodity… My Commodity-Driven ‘Burn Notice’ Short Play Gold is always an emotional play when there are geopolitical tensions in the world. But through my years as a floor trader, I noticed that no trade fades faster than gold bullishness surrounding a potential war. Traders tend to overextend themselves going long into gold as tensions rise, leading to a potentially massive dump in the precious metal once the uncertainty subsides. The moves that matter for gold are the big technical swings… And when I alerted this Burn Notice on Monday, October 9, spot gold and its related stocks were seriously breaking down. Yet, still, one gold stock was squeezing upwards to ridiculous levels — Anglogold Ashanti Ltd. (NYSE: AU). However, my timing was off. AU continued to squeeze another 13% into Wednesday, October 11… AU 3-month daily chart — courtesy of [StocksToTrade.com]( WARNING: Normally, I would’ve cut this red position immediately. However, difficult times require unconventional moves… The SPDR Gold Trust (NYSEARCA: GLD) had a red-day pullback on Tuesday, showing signs of weakness, while AU continued to blast off. This leads me to believe holding AU short for one more day could work out nicely. (Plus, just look at how many gaps there are to fill on that chart!) But again, this is me shifting my strategy to fit the current market conditions… I wouldn’t hold this position for this long in a normal market. But with so many geopolitical catalysts bubbling up, I think it’s important to trust my gut here. BOTTOM LINE: You’ve gotta be willing to adapt your game plan if you wanna survive in this stock market. Closing Thoughts I said it yesterday and I’ll say it again … I don’t root for bad events to make money. What’s going on in the Middle East right now is utterly terrible and my thoughts are with anyone affected by it. However, trying to understand the world as it is (and not as I wish it to be), I’m realizing how critical it is to adapt to this ever-shifting market. I’m making moves I wouldn’t normally make … you might consider doing the same. As always… Stay Street Smart, Jeff Zananiri P.S. My overnight trade idea has already been delivered to Burn Notice Members, but the next one could be even bigger! DO NOT MISS IT — [Click here now to get my next idea!](   66 West Flagler Street STE 900 Miami, Florida 33130 United States [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Click Here to Unsubscribe]( **Our gurus teach skills others have used to make money. Any results displayed are extraordinary and are not typical and will vary from person to person. For more info read our [Earning Claims Disclosure]( About: Making money trading stocks takes time, dedication, and hard work. 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