Avoiding The Dangling Carrot

We know what you are thinking, what in the world does a carrot have to do with trading the market? We understand, that is a legitimate question. Allow us to elaborate a bit for you.

In the past few weeks, we have (market participants) been experiencing an increase in market moving headlines. Yes, we are wrapping up the first quarter of 2023, the Fed continues to raise interest rates with their hawkish sentiment, the Russian/Ukraine war has no end in sight, the list goes on and on. So, it is only understandable this is occurring. However, what has just been mentioned, there is something that is casting a shadow over all of this– the new-new. Market stability is in question and we are clearly seeing this as the market whipsaws from lows to highs. This type of instability has certainly taken many market participants for a serious ride.

A good example of past “carrot dangling”, was how ex-President Trump used the media to his advantage. There really had not been a U.S. president with the ability to send out a Tweet on Twitter and move the market the way in which he had done. Before he was elected President, and as the election date neared, the randomness appeared to have increased from the Trump camp. Why do you think that was? Perhaps his poll numbers were reflecting a weak position in the race; that is one opinion. Perhaps, he was using what he knows to work to keep the control that was undenied. Either way, the carrot was being dangled in front of easily influenced market participants.

Now, without a crystal-clear trading process, it is easy to fall victim to someone else’s master plan. Emotions take over and trading decisions become clouded – check mate, they win.

Question is, how could you avoid falling victim to the headline games?

EASY!

Cut out the noise, block out the noise and follow a crystal-clear trading process.

Sounds simple enough – however, following your trading process is easier said than done. When the markets are moving, it is easy to question your process when market makers play with price around obvious key levels. But it is at that very moment that remaining disciplined is absolutely required. Your trading process and rules only work if followed – every single time. Period, full stop.

These clowns could use every trick in the manipulative book to entice action from market participants, but if you completely eliminate the opportunity for them to penetrate your trading process – then it is completely irrelevant as to what tricks they try to pull.

Do not fall for their games!

Most know the level of control the U.S. President has on the world. So, you better believe with that level of known control, there will be no missed opportunity to keep it.

Tweets. Media headlines. Whatever platform is used, understand there is an ulterior motive behind the action.

With all this said, how can you as traders use this to your advantage?

Understanding that many market participants truly do not understand how the market operates, so when market moving news comes out – many allow their emotions to dictate their trading decisions.

Knowing these emotional traders are all over the market, you can then take advantage of their frantic and highly predictable decisions once they take the carrot bait dangling in front of their highly influenced faces.

Trade Smarter.

Rinse and repeat.

About The Street Trading

Consistently Profitable.

That's The Goal.

Start with a crystal-clear vision of where you’re headed, then effectively lay the foundation to reach that goal through a systematic process.

That's The Street Trading.

We provide a straight-forward, no-nonsense results-driven trading education, that cuts through the noise to teach new and existing traders on how the stock market truly operates.

Our attention is focused on building actionable knowledge about the markets from the ground up. We construct a foundation of the fundamentals behind consistently profitable trading that you can build a career on. Take the guess work out of trading and ultimately understand what moves the market to finally flow with the Street and Trade with Clarity.

Day Trading | Swing Trading | Position Trading - It all comes down to managing risk and market psychology.

If you’re interested in learning more about what we have to offer you as a trader, come check us out at www.thestreettrading.com

We look forward to joining you on your trading journey!