When there’s so much back and forth action in the market… the last thing you want to do is place a lot of random bets – thinking you’ll catch the trend and get paid on all of them.
That’s the wrong mindset to have.
When you’re trading in this type of environment – the best thing to do is sit on your hands and wait for your high-probability setups… even if it doesn’t come up every day.
Less is more in a news-driven market like this one.
One strategy that I like to use when markets are all over the place is my Bullseye Trade – it’s my highest-conviction trade that I place just once a week.
How does it work?
It’s simple, I focus on my charts.
Here’s what I’m talking about.
As you can see in the chart in WYNN… the stock got crushed, but it actually found a support level. Not only that, when you look at the red and blue lines… there’s actually a pattern forming there – it’s what I call the money pattern.
When I see that type of price action… it means the stock has a high probability trade setup – and that was one of my Bullseye Trade alerts not too long ago.
The very next day, I locked in a 70% winner… not the 100% winner that I wanted, but when you rake in returns that fast, it wouldn’t be wise to hold on for more because it could all turn very fast.
I wasn’t the only one locking in profits in WYNN… my clients were also able to pull in some nice profits as well.
That wasn’t the only winner that Bullseye Trade spotted recently.
In fact, we had another winner in PayPal (PYPL).
Here’s a look at the chart in PYPL.
PYPL was on fire this year… but it had a bad earnings report this quarter and the recent market volatility actually brought it back down to reasonable levels.
If you notice, PYPL was holding the $102 level well… and it was right near a breakout level.
When I see this type of price action, as well as the money pattern flash a buy signal… that lets me know it’s a high-probability setup and I should put it on my high-conviction trade list.
I alerted traders I was buying PYPL calls…
… and just a few days later, we were locking in yet another juicy winner.
That’s what I mean by just focusing on high-conviction trade setups and trading less. You’re able to consistently pull in returns while minimizing your risk.
I’ve found some nice edge in my Bullseye Trades despite the market volatility. If you need some Bullseye in your life, click here to join now.