Booking profits in tough markets has never been easy. You need to acquire a set of skills in order to take advantage of the rigorous market. But learning risk-conscious techniques, when used wisely, work equally in favorable cases, giving you an edge in a stiff competition.

But how can a trader survive difficult markets? Let this article tell you.

  1. Always bear in mind that cash is a position, too. The market knows you are there and entices you to get your money on your wallet. Most market participants tend to wait for more conditions to become much endurable and more familiar. Therefore, traders put their money at the ticker tape whenever a price impulse seems like the one that realized a profit in better periods. In modern financial markets, saving a dollar matters more than earning a dollar. Capiche?
  2. Take a breather and look at the charts. Since high volatility can overwhelm you and dampen your focus, making you second guess on your strategies, step back and dwell on weekly and monthly charts. Patience is the key here. Days can pass between buy and sell signals. Between those days, the market will induce you with wild swings which look like instant moneymakers. Go on with your techniques because long-term support and resistance levels work best in corrective environments.
  3. In cases choppy conditions dominate the markets, set your sights on huge game. All bad markets exhibit profitable opportunities, but we get sidetracked by pernicious price action. Good opportunities may only surface at key turning points. It is fine to just sit and stare at your screen for many days or weeks, and do nothing, until that time comes. This is worth the time and effort because you can book months of profits in few days if you get the right timing.
  4. Uncertainty and volatility are inevitable; hence, keep calm. All market movements lead to new opportunities. Volatile conditions imply signal periods of high conflict and high commitment when two sides battle to rule the tape. Should you decide on the winner of this battle? No. You have to wait until one side emerges as the victor and maximizes the victory. Bad markets present good opportunities, too, from time to time. But you might miss them, especially if you concentrate on huge game and the bigger picture. When it happens, keep your cool. You should not chase every good opportunities, aim for the best ones.
  5. Survive the uphill market and the rest will follow. More than anything else, preserve your capital no matter what. Cut down trade frequency by 60% to 90% compared to times the good markets give off all types of low-risk setups. Follow that calm inner voice telling you what to do and what not to do when a crisis strikes the tape.