January 02, 2025 | Read Online

Don Kaufman here.

If you thought the first trading day of the year was going to ease you into the markets, think again. January 2nd kicked off with a level of volatility that would make even the most seasoned traders sweat.

The S&P futures were swinging like a wrecking ball, Tesla was dragging the Nasdaq down like a lead weight, and the advanced-decline line was flashing warning signs left and right.

This isn't your average market, and if you're not managing risk like a professional, you're in for a world of hurt.

Let's break down the 5 critical lessons from today's trading session—lessons that could save your portfolio and your sanity as we go into a new year.

#1 : Respect Volatility— It's Not Your Friend

This market doesn't care about your plans, your predictions, or your bullish bias. It's a firehose of chaos, and if you're not careful, it'll knock you flat.

The S&P futures saw 90-point overnight swings—a clear sign that volatility is running the show.

Here's the deal: when the market is moving like this, you don't fight it. You don't try to guess the next move.

You use defined-risk strategies like vertical spreads and butterflies to protect yourself.

And for the love of all things holy, if you're trading futures, stick to micros—these moves are too big to mess with full-sized contracts unless you've got nerves of steel and a fortress of capital.

#2: Focus on Risk Management– Keep Your Head in the Game

If you take one thing away from this, let it be this: risk management is everything.

I don't care how confident you are in a trade—if you're not managing your risk, the market will humble you.

One of the biggest mistakes traders make is averaging down on losing trades.

Don't do it!

I'll say it again for the people in the back: don't add to a losing trade. You're not going to bluff your way out of a bad position. Period.

Instead, focus on trades that are working.

Press your winners, not your losers. And keep your position sizes in check—because in a market like this, a little leverage goes a long way toward disaster.

#3: Mega-Cap Stocks Are the Market's Puppet Masters

Let's talk about the elephants in the room: Tesla and Apple. If you think the market is moving based on fundamentals, think again. Today, Tesla missed delivery numbers, and boom—down 7%. That one stock dragged the Nasdaq down with it like an anchor tied to a sinking ship.

Apple?

Another lead weight.

These mega-caps are the linchpins of the market.

If they're weak, the whole market feels it.

And let's not forget Microsoft, Meta, Nvidia, and Google—they're all part of this tight club that can dictate the day's price action.

Here's the takeaway: keep your eye on the big players. If Tesla or Apple sneezes, the market catches a cold. And if a few more of these names start selling off, you'll see a cascading effect that could rip the market apart.

#4: Patience and Discipline: Know When to Walk Away

In a market this wild, you've got to stay disciplined. It's not about trading every setup—it's about trading the right setups.

Take today, for example.

I had a butterfly spread I wanted to put on, but the price wasn't right. Could I have chased it? Sure.

Would that have been smart? Absolutely not. I canceled the order and moved on. That's what discipline looks like.

Patience is a trader's best friend, especially on a day like today. If the market isn't giving you a good entry, don't force it. Let the trade come to you, or don't trade at all. There's no shame in sitting on the sidelines when the market is a minefield.

#5: Adaptability Is Key– Evolve or Die

Markets change. Strategies evolve. What worked last year might not work this year, and if you're not adapting, you're falling behind.

That's why I focus on strategies like in-out spreads and back spreads—they work in volatile environments like this one. And when the market shifts again? I'll shift with it.

Here's the truth: the traders who survive in this business aren't the ones who are always right. They're the ones who know how to adapt. If you're stuck in your ways, the market will eat you alive.

Final Thoughts

Today's market action was nothing short of a masterclass in controlled chaos. From volatile price swings and mega-cap stock drama to the relentless tug-of-war between buyers and sellers, the first trading day of 2025 reminded us why discipline and preparation are critical.

Volatility isn't going anywhere, and the traders who thrive in this environment aren't the ones chasing every move—they're the ones sticking to defined-risk strategies, focusing on risk management, and staying patient.

This isn't a sprint… it's a marathon.

The markets will test your resolve, but with the right mindset and tools, you can come out stronger.

If navigating this storm feels overwhelming, remember: you don't have to do it alone.

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At just 58 cents per trade, it's a no-brainer—especially if you're looking for a way to navigate today's wild markets with confidence.

2025 is already shaping up to be a wild ride, but with the right guidance, it could also be your best year yet. The opportunities are out there.

The only question is—are you ready to take advantage of them?

Strap in.

Let's make 2025 the year you conquer the markets.

To your success,

Don Kaufman

How a Regular Guy Turned $6K Into Over $40K Without Obsessing Over the Markets

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Between career demands, family responsibilities, and the sheer noise of financial news, it's easy to feel like you'll never have the time, skills, or focus to succeed.

But what if you could turn a small account into something extraordinary—without being glued to a screen, devouring endless market updates, or holding a finance degree?

That's exactly what Gianni's "mystery guest" (his own brother!) did—and the results are jaw-dropping.

👉Watch the Replay Now!