We have all heard the phrase over and over again; Patience is a Virtue.
For most traders, patience is a difficult but very import skill that each individual must learn to master. To be successful trading, it is important to wait for the proper combination of patterns, price action, volume and volatility that provides us with an edge for a new trade entry, particularly a weekly. That edge is where the risk is acceptable and probabilities are in our favor. Patience is also a test of endurance because the longer we wait, the harder it is to maintain the discipline of being patient.
The way I view this current market is the bulls and bears remain locked in a fierce battle for control. Volatility is still high, price moves are fast, and complete reversals happen in the blink of an eye. I have written previously that the selloff earlier this month may weeks to resolve.
Like many fellow traders, I have learned the hard way over the years that a market such as this can chop an account to pieces. I have been there, done that, and allowed the market to take back some or all of my hard earned profits at times. I want to remind everyone once again that the right environment for the weekly trades will return. It's important that we practice capital preservation so we can take advantage when that environment presents itself.
We are not recommending either the VXX Weekly Call Credit Spread, or the SPX Weekly Iron Condor, for the March 2 cycle.
As always, stay keen on your risk management and trade carefully,