Don't Panic! My Plan For This Market Crash
In a Nutshell
Markets recovered after the Fed rate hike, making shorts risky as markets show strong support at 700. Ricky maintains his Micron short position (175 shares, $170K exposure) because the stock is consolidating without making new highs, with plans to reduce size if it returns to support. Position sizing discipline is critical to preserve gains—avoid forcing trades, cut losses quickly, and keep exposure light enough to recover from mistakes.
These notes were generated by AI and may contain inaccuracies.
Markets erased all losses and then some just one day after the Federal Reserve raised interest rates. Markets have strong support at 700, making shorting risky. Markets are irrational and always more bullish than bearish. Probability for more rate hikes in the next meeting remains greater than a potential pause.
Ricky has been on a hot streak, making over $15K two days prior. The concern is that a hot streak can create feelings of invincibility, leading to aggressive trading and potential large losses from a single bad trade. The key is avoiding terrible position size management and terrible risk management.
Today's live trading session was approached with the mindset of preserving gains. The strategy is to avoid forcing trades that aren't playing out as expected, and to accept losses when trades go against. The NASDAQ is viewed as overbought with significant pullback potential.
Micron was selected as the short position because memory chip stocks gapped up significantly. Intel was also strong. SanDisk was avoided due to excessive volatility. The position consists of 175 shares representing $170,000 in exposure, which is within the trader's risk tolerance. The position is priced in well with trades closed daily.
The stock has been consolidating without making new highs, keeping the trader in the green. The profit potential for this short is viewed as greater than the risk potential. If the stock returns to previous support range, the short position will be reduced to $100,000.
Traders should not compare profits to others since everyone trades with different dollar amounts. The approach involves trading with shares rather than options. The focus is on managing position size and risk when doing well, acknowledging that mistakes will occur.
Position sizing management makes risk management easier because cutting losses when all-in is more emotional. A 1% move against a lighter position is easier to tolerate than the same move on a larger position.
Live trading sessions occur every morning at market open at 9:30 a.m. Eastern time or 6:30 a.m. Pacific Standard Time, lasting 30-60 minutes daily. Sessions are fully archived. The LPP program costs $110 today with current sale pricing, offering one-time payment and lifetime access.
After 10 years of trading, the main difference is the speed of recognizing mistakes and cutting losses quickly. Position sizing is kept light enough to recover from losses.
The S&P 500 jumped 1.25% after yesterday's crash, adding $940 billion to the US stock market. The 1% move appears large due to market size. Oil prices continue rising, with US diesel prices reaching a new record of $6.40 per gallon, up 88% in 9 months. Truck drivers now pay $3 more per gallon for diesel than in January.
Oil is the biggest contributor to rising inflation rates. Higher freight costs will affect all transported goods and services, with increases passed to consumers. Higher fuel costs bleed into other consumer goods and services beyond oil.
The Federal Reserve raised interest rates because inflation is high, not at their 2% mandate. Inflation is high due to elevated oil prices stemming from Middle East tensions initiated by the Trump administration.
Direction currently favors going long. When zooming out on QQQ, common resistance and support ranges become visible. Markets should be understood based on these levels to decide whether to sell/trim or buy/cover depending on long or short positioning.
The $2,000 gain from the current position is relative to over $100,000 exposure. A red day is anticipated, so position size management is prioritized to enable quick loss cutting when needed.
The sale for LPP ends September 30th at less than $110 per day with one-time payment and lifetime access. Members from 2018 still have access today.
Keep Ricky Gutierrez in your library
Save the videos and channels worth coming back to, and find them again in one place.
