As we progress along our trading journeys, it’s important to never stop growing and improving. Sometimes, the best way to do that is to take the time to learn from one of the greats. As part of an ongoing series on notable traders, we’re taking time to talk about one of the most recognized names in the space: Paul Tudor Jones.
We know, we know. These "new year" themed posts are supposed to come out at the beginning of January, not in the middle of it. But since our traders have been so busy getting ready to crush it in 2019, and we had so much to reflect upon in 2018, we decided to give you a break from all the themed posts out there.
2018 was a banner year at TopstepTrader for a whole host of reasons. In case you missed some of the milestones, we broke it all down, and are incredibly excited to give you a glimpse of what's on the horizon.
Our traders are making big and small moves every single day to boost their earnings and further cultivate their trading skills. Every now and then, a trade stands out to us as particularly smart. It’s not always about the most profitable trades, but ones that demonstrate discipline and steady insight. This week's notable trade is a perfect example.
Image Source: Wikimedia Commons
We wrote earlier this week about how large government crises, like the ongoing government shutdown, rarely correlate with increased volatility, encouraging traders to remain disciplined and stick to their strategy. We stand by that.
But as we mentioned in that post, just because these events don’t always correlate with increased volatility doesn’t mean they don’t impact the economy or the way we interact with the markets. There are a whole lot of people out there who missed a paycheck Friday as a result of Washington’s stalemate, and while that’s tragic in and of itself, it could have broader implications for the economy.
December 2018 saw a major surge in market volatility, with the S&P 500 plunging more than 14% at the bottom and the VIX jumping over 68% at its height in the month. While things have settled down some since the start of January, the spectre of volatility looms, everpresent, raising the question: how do you deal with it?
44.66% winning trades.
Average winning trade of $511.79.
Average losing trade of $263.90.
These statistics may not seem remarkable, but disciplined trading compounds in a very short amount of time. These are stats from Gabriel F., a funded trader in Spain. Gabriel accumulated $26,266 in profits over 33 trading days since November 1 in his Funded Account®.
Here's what Gabriel is doing so well right now.
This is an incredible trading environment. Yesterday's moves in U.S. equity, interest rate and forex markets offered tremendous opportunities. This is a time when traders have to adjust their strategy, says Peter Davies of Jigsaw Trading.
Peter recently sat down with Topstep's Eddie Horn to talk about how to trade volatility — from someone who has been involved in markets from before the 1999 tech boom and bust. Peter offers tactical advice for traders, including what the absolute worst adjustment you can make in heightened volatility is and how you can improve your performance each and every day.
Trading can be frustrating. Perhaps never more so than when you think you are seeing the market clearly and yet, you can't seem to take advantage.
That was the topic of a post on Topstep's private Facebook community, where Lee A. said:
"I'm again having the comical problem of being 100% correct in directional moves, yet getting stopped out or filling entries that go nowhere. And just found myself upside down once again today and had to cut a trade at a big loss. Can anyone share some wisdom?"
The post hit a nerve within the community, particularly given the recent volatility that has some traders wondering how to adjust their styles in a new environment. So, Performance Coach Dan Hodgman and our Content Manager Mark Meadows got on Facebook Live to talk through their recommendations for adjustments traders should make to continue to make money trading futures. Enjoy.
Why have we been saying that markets right now are full of opportunities? Because volatility plus risk management can equal big profits. Take just one example, Jacob B. in Utah, who started in his TopstepTrader Funded Account™ on October 1 and amassed a healthy amount of profits and a $7,000 withdrawal check by the end of the month.
What can you learn from how Jacob managed his account and took advantage of what the market gave him?
10 years ago, markets presented opportunities that we haven't seen since — if you were disciplined and poised to take advantage. It's a bit ironic that on the tenth anniversary of the 2008 financial crisis, we are seeing current markets go a little haywire.
In this documentary, we talk with five traders about what it was like to trade through the 2008 financial crisis, how they adjusted and what their thoughts are for markets 10 years later. You are not going to want to miss it.