The Biggest Trading Mistake You Can Make in This Difficult Market

After some hopeful action on Monday, the market is struggling again Tuesday. Breadth is poor with just 30% of stocks in positive territory, but index losses are relatively mild and everything is holding above the lows hit on Friday.

The pattern with Iran and oil has become routine. Every piece of positive news is met with a burst of buying, then doubt and skepticism move back in and the mood turns negative again. Monday's Trump announcement was the latest example.

There were also reports of unusually large trades placed roughly 30 minutes before Trump announced the five-day delay in bombing. The timing raised eyebrows across the market. There are almost certainly large funds tracking Trump's communications and positioning ahead of any announcements he might make.

Someone nailed it and made millions on Monday. That is the environment individual investors are contending with.

The Mistake Most Traders Are Making

The biggest error in this market is a lack of clarity about time frames. If you rushed in to buy on Monday and are frustrated by Tuesday's action, that frustration is worth examining.

Did you expect the market to go straight up? Were those buys intended as longer-term holds? Do you still have capital to add if prices move lower? Did you have a stop level in mind? If you bought for a quick trade are you still holding it? What is the plan?

My advice to stay patient, avoid bottom-calling, and focus on relative strength has been consistent because it is the best course of action. But most traders cannot resist the pull of volatility. They jump in on big moves and then undermine the trade by having no clear plan or time frame. The result is churning, emotional decision-making, and unnecessary losses.

A practical solution that works for me is putting some small short-term trades on the screen to keep busy while the larger picture develops. The time frames on these are explicit and non-negotiable. They do not become investments. The value is that it keeps the urge to do something significant at bay and helps control the emotional responses that lead to bad decisions.

What the Charts Are Doing

Even with Tuesday's pullback, we are not making lower lows. Support is holding and that gives us a defined trading range between recent highs and lows.

One short-term setup worth noting is Xeris Biopharma (XERS) . A break of support that triggers obvious stops often shakes out weak holders and sets up a quick bounce. Xeris fits that description Tuesday morning.

At the time of publication, Rev Shark was long XERS.