Larry’s Note: I saw trouble brewing heading into 2008. I predicted the 2020 crash and the 2022 bear market. More recently, I anticipated the chaos we’ve been seeing in 2025.
The thing all those years had in common? Rough, choppy, painful swings that left many investors in ruins.
But if you know how to trade these moments, the volatility can actually be a boon to your portfolio. In each of these years, I helped people profit despite the turmoil.
That’s important because I don’t think we’re near the end of this current upset. Sure, the market will take a breather now and again. But the bull market is dead. And I expect whipsaws will punish anyone who tries to “buy the dip.”
So if you want my blueprint for protecting yourself… and even adding profits to your account while the market drops… then I’d like to invite you to a special event that’s coming up on April 23 at 11 a.m. ET. There, I discuss the next chaos catalyst around the corner… and how I’m turning out profits like 48.2%, 22.4%, 56.5%, 86.4%, 39.5%, 25%, 72.3% – and more – this year.
To attend this briefing, all you need to do is click here to automatically add your name to the guest list.
I look forward to seeing you on April 23!
The market swings in recent weeks have been as big as any I’ve seen throughout my career.
These types of moves can mess with your head. You might spot a promising setup right before the stock reverses sharply and tanks. Or you exit a position only to watch the stock rally strongly.
It’s frustrating. And it can lead you to trade with your emotions instead of your mind. That can be dangerous for a trader.
Plus, while you’re beating yourself up over trades gone wrong, you could be missing out on plenty of other profitable trades.
That’s why you need to change your mindset and think like a professional.
Otherwise, this crazy period in the market could throw you out of the game…
Think Like a Professional
The simple truth is that there are going to be times when things don’t go your way. No matter how much analysis or thought you put into a trade, it just doesn’t work out.
The difference between a professional trader and others is how they deal with it.
Instead of reacting after an event (for example, a tariff policy reversal), you need to put yourself ahead of the trade.
You need to know exactly how you’re going to manage a trade before you enter it. That includes when you’re going to get out. Then you just have to follow your plan.
If you get stopped out, then you get stopped out. If you take profits but leave money on the table, you accept the win you got and move on to the next trade.
Don’t waste valuable time ruminating over what could or should have happened. Don’t rationalize how you were right and the market was wrong.
Doing that achieves absolutely nothing.
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Keep Focusing on the Future
If you exit a position just before it rallies, then take that on the chin. It’s going to happen to every trader at one time or another.
Just move on to the next trade.
Whether you’re running a big hedge fund or trading your own account, you’ve got a limited amount of capital and time.
No one can afford to tie their money up in a trade that is going nowhere. Neither should you chase after a trade that has already run its course. You have to let “missed” trades go.
As a trader, your job is to keep your money moving to the next good setup.
Think of your trades strictly in terms of risk and reward – not what it could mean if that trade goes well. If you’re dreaming that a trade could pay off debt or help you retire early, for example, you’re likely going to attach too much emotion to it.
Finally, you also need to choose the right strategy…
Stick to Your Strategy
The moment you start second-guessing your strategy, you’re vulnerable to your emotions.
A small loss could snowball into something much bigger. Or a profitable trade could turn into a loser.
One of my favorite strategies is mean reversion. I talk about it frequently in these pages. I look for stocks that are overstretched in one direction and are likely to snap back the other way. And I use options so we can play these moves to the upside and downside.
You might use other strategies, of course. But the important thing is to know what your strategy is – and what metrics you’ll use to spot setups – ahead of time.
Of course, no strategy is perfect. You can always fine-tune your strategy off the back of your results.
But you don’t want to chop and change it wholesale just because your last trade didn’t work out. That’s a good way to let your emotions leach into your trading.
The secret to success is simple, but it’s not easy.
Focus on finding the best risk/reward setups. Close positions based on your predefined exit strategy. And keep your gaze on the horizon, not the rearview mirror.
By following these rules over the years, I was able to take the emotions out of my trading. In doing so, I became a successful trader.
And if you want to make it in the long term, this is a lesson you’ll need to learn, too.
Happy Trading,
Larry Benedict
Editor, Trading With Larry Benedict