In today’s episode, we discuss how bull markets, much like the one we are currently in, can let new traders get away with some bad habits that will eventually lead to blowing out unless they get corrected as soon as possible. 

A False Sense Of Confidence

Beginner traders often get overconfident when they find a strategy that works –  which may lead to some early success, and then come the plans for how they’ll spend those millions.

But at some point, when market conditions change,  the golden ticket strategy will stop working. 

The resulting losses burn out several months worth of hard-earned gains in just a few days, along with your confidence and will to trade. 

Anybody that has started trading in the latter half of 2020 and through 2021 has experienced nothing but a strong bullish stock market.

Bad habits such as chasing the markets and FOMOing into trades may have even been rewarded in recent months but where new traders tend to get into trouble is that they can engrain these habits in their subconscious, and these programs will run on autopilot even when market conditions change.

How you start influences the rest of the career and sets your expectations so it’s important to get started off on the right foot.

Traders need to have an arsenal of tools to adapt to changing market conditions 

How can traders adapt?

  • Trade less size and be quick to take profits when trades go in your direction 
  • Aim to take your risk off the table and leave a small runner,
  • Remove all profit expectations and be grateful for the opportunities the market gives you!
  • Do some research on how great times end (Ray Dalio – The Big Debt Crisis)
  • Join a community and be a sponge
  • Set some hedging points in your portfolio – there’s no need to get smoked and watch it happen


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