Trading Volatile Markets While Preserving Capital

Trading Volatile Markets While Preserving Capital

Adapting to the Current Stock Market Conditions

Show notes

This week, Kate’s guest is Josh Hayes, long-time trader and founder of Big Wave Trading. Josh talks about adapting to the current market conditions, and how he manages trades with a view toward different holding time frames.

Why Josh believes some trading methodologies are outdated due to changing market conditions, as well as changes in the available information and algorithmic trading

Why he believes traders and investors need more than one approach in this market

How Josh approaches the question of capital preservation, and keeps his time horizon methodologies separate

Josh’s use of trailing stops as a stock moves higher

What setups and indicators Josh uses

What Josh is seeing regarding market bifurcation

How he manages risk and position sizing

How does Josh view the SPAC IPOs?

Josh has a rule: Never fight the Fed

Why Josh is currently not shorting stocks

What are the chart setups Josh is looking for in various market conditions

How the intense volatility means it’s difficult to hold on an end-of-day basis

Why Josh uses a breakeven stop in certain trades

Why he advises taking some profits right now, after even a small gain

What’s the most he’ll risk with his account capital in this market

What are the signals Josh is looking for to get back into the market fully?

How Josh has begun opening long-term positions in large cap stocks

What will Josh do if he sees a 50% Fibonacci retracement in this market?

What level is he looking for in the S&P 500 to go long?

Stocks mentioned in this episode

Hostess Brands (TWNK) Flexsteel Industries (FLSX) Tsakos Energy Navigation (TNP) Roblox (RBLX) Occidental Petroleum (OXY) Chevron (CVX) Sky Harbour Group (SKYH)

Where to find Josh

Twitter @BigWaveTrading StockTwits BigWaveTrading LinkedIn Instagram Facebook

Links mentioned in this episode:

This podcast is hosted by


Kate Stalter

Kate Stalter

Kate Stalter is a Series 65-licensed asset manager, with more than two decades of experience in various areas of financial services. As an investment advisor and financial planner, Kate personally manages client portfolios, with a focus on successful retirement, including asset allocation, income generation and tax strategies.

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Josh Hayes

Josh Hayes

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