Managing Editor’s Note: Our colleague Jeff Brown is about to give away THREE free recommendations tomorrow night – including his top pre-IPO trades for the Anthropic IPO AND the OpenAI IPO.
Why give them away? Because Wall Street is going to get rich from these IPOs… and Jeff believes regular folks deserve a way to claim their fair share. That’s the whole reason he’s holding The Super IPO Summit.
Save your seat now with one click.
Some weeks, everything seems to be moving around at once.
Take last week, for example. Oil shot back above $100 a barrel. The 10-year Treasury yields surged towards 5%. Inflation data showed that inflation refuses to go away.
Along with that, the market went from wondering whether the Federal Reserve will raise interest rates to treating a rate hike like a done deal.
Despite that, the S&P 500 recovered much of last week’s early losses by Friday’s close. There’s a clear disconnect between the macro picture and the price action.
When markets are moving around like this, many people have a natural temptation to jump in and capture some of the action – even if trading signals aren’t lining up.
True, volatility and opportunity often go hand in hand. But they’re not the same thing.
Sometimes extreme price action can create strong setups. Other times, it creates more ways to lose money.
Knowing the difference is one of the skills that separates experienced traders from everyone else…
By November 11, Jeff Brown believes Elon Musk is going to help trigger a historic rally in what could be… “The Only AI Stock You Need to Retire.” Wall Street is already projecting sales will triple in 2027 alone. Click here to see the details before it’s too late.
Tomorrow, Wednesday at 8 p.m. ET, Silicon Valley legend Jeff Brown will name his #1 pre-IPO trade for the coming Anthropic IPO… his #1 trade for the OpenAI IPO… and a third pick for an upcoming IPO almost nobody is watching. All completely free. The Super IPO Summit is free to attend – but it takes place on an exclusive website, and access is limited. Register here before spots fill up.
Doing more trades doesn’t necessarily translate to higher earnings.
In fact, the opposite can apply. If the additional trades come from low-quality setups, they could leave you worse off.
Yet the bigger the market moves, the greater the temptation is to get involved.
Take what happened last Friday. At one point, the S&P 500 was trading almost 90 points higher than the previous day’s close. You might chastise yourself for missing the move and pile back into the market with a long trade. But then suddenly the market drops, and you kick yourself for not being short.
Before long, you’re chasing the market rather than letting it come to you – and that’s a dangerous habit. That’s especially relevant in a market like we’re seeing now.
You have to respect the price action. While broader macro themes might eventually play out, our job is to trade the market that’s in front of us.
Being a professional trader is not about participating in every move. You only put your capital at risk when the odds are sufficiently in your favor.
There’s an opportunity cost to taking a mediocre trade. It consumes your capital and your attention, potentially leaving you compromised when a stronger setup appears.
That’s why I’d rather miss a trade than try to manufacture one.
Of course, there’s a big difference between being hesitant and being selective. When a strong setup appears and the risk/reward profile stacks up, you need conviction to enter the trade.
Until then, there’s nothing wrong with sitting on the sidelines. Sometimes that’s exactly where you need to be. That way you still have your capital and a clear head for when a genuine high-probability opportunity comes your way.
Remember, you don’t get paid for how many trades you make or how many hours you spend in the market. You get paid when you successfully bank profits – and have the discipline to know when to keep those funds in your pocket.
The good news is that with oil, inflation, bond yields, and interest rates all pulling on the markets right now, we’ll see plenty of opportunities ahead. We just need to be patient and wait for the right ones.
After all, sometimes the best trade is the one you don’t take.
Happy Trading,
Larry Benedict
Editor, Trading With Larry Benedict
Reading Trading With Larry Benedict will allow you to take a look into the mind of one of the market’s greatest traders. You’ll be able to recognize and take advantage of trends in the market in no time.
