How to Handle Overbought Markets

The instinct of many new and developing traders is to wait for confirmation.

Then, once they have confirmation, they tend to freeze because the move seems too big to chase.

This pattern is what leaves traders on the wrong side of the market when the big moves happen.

I adjust proactively when the move starts. Then trim back when the move gets extended. Then when the move re-starts after consolidation or pull back, I proactively adjust for the new trend.

I don’t predict or anticipate — I follow. It works, I sleep well, I enjoy trading this way.

Right now the market is extended. I’m finally switching from long Delta to slightly negative. However, when paired with negative Vega — I’m still positioned great to respect an accelerated bullish trend.

Members, check out today’s Premium Signals.

Leave a Reply

You must be logged in to post a comment.