What's wrong with this market today? Nothing. It is just part of the endless cycle that occurs on a random basis. The one great certainty about the market is that it will shift. If you count on it always doing the same thing that it did yesterday, then the likelihood that you will be disappointed.
Market players will often waste their time trying to find explanations for why the stock that was up yesterday is down today. It is just the ebb and flow of trading. The problem is that many traders have absolutely no tolerance for volatility when they see red on the screens that become anxious and start wondering what's wrong.
One of the hardest things for many traders to do is to get through routine volatility. It never feels routine when we are losing money. We tend to believe we made a mistake and that the stock that we liked recently has lost its luster.
The challenge is to manage positions tightly enough so that losses don't become significant but not so tightly that you are shaken out of a good stock just because the market action is slow or dreary. Days like today can actually be some of the best times to add to favorite positions if you aren't already in too big and if you have some room in case there is more downside.
One mental game I play all the time on a day like today is to sell part of a position with the goal of being back in an even bigger position on further weakness. I find that it changes the way I view trades in a positive way. Rather than sit and stare at the unpleasant loss in a stock I like, I start looking for it to go even lower so I can be more aggressive with my rebuy.
I'm using this method today with Enthusiast Gaming Holdings (ENGMF) . As I discussed yesterday, I'm looking ahead to some positive catalysts in the next couple of weeks, and I want to try to have a maximum position as it develops. Rather than just buying more and more. I play some mental games that make me a more aggressive buyer on weakness rather than just someone that is disappointed that stocks don't go up every day.
The trading action in many stocks is not very good today, but that is perfectly normal, and if you look at it the right way, it actually may be a good opportunity.