Stay Directional Neutral...Here is why! 
I think we can all agree that driving downhill with your car in neutral is going to be exponentially easier than doing it the other way around.. driving your car uphill in neutral. That doesn't make much sense now does it?
In the past I've written about the importance of being “directionally neutral” when trading. Part of having a neutral attitude is creating what's called a hedged thesis. I've talked about this in the past and I want to elaborate on it a little bit more. I also want to share a video with you on a past trade that I put on. The idea of being directionally neutral is such that you don't have a bias towards the markets direction. You are neither long nor short. . You are simply waiting for Price action to afford you an opportunity to apply your trading edge. Whether it's long or short, again, it doesn't matter. Being directionally neutral means that you're open to any and all opportunities that present themselves. The only caveat is that your trading edge must be applicable.

The simple fact of the matter is that if you're a long biased Trader or a short biased Trader you're only exposing yourself to ONE SIDE of the market. A true hardcore veteran trader knows that we are opportunistic in nature. Our job is not to be married to one side of the market, but to take advantage of price action movement and the volume that follows on either side of the market. There have been countless times where I've seen fantastic long opportunities collapse into incredibly beautiful shorts. I've also seen incredible shorts hit floors bounce and rally and turn into incredible movers to the long side for days on end. Again the idea here is not to be long or short but to be open to the opportunity that is presented. If you're looking at the market and the market gives you a short opportunity you're not necessarily shorting the market, you're simply accepting the opportunity to profit. That’s the true name of the game…making money!

All that was just a warm up, a trader rant if you will, into my chief point.. below there's going to be a video where I'm going to break down step by step a long trade that I was looking at based on some pre-market news that we talked about in chat. This particular setup is the same setup that we see every single morning on these low float opportunities. Having said that, with every long setup I instantaneously apply a hedge thesis… meaning that if my long thesis fails I've already got a short thesis that will cover me on the back end. Which will allow me to take advantage of an opportunity while price action is sliding to the downside. Having a hedge thesis, in simplest terms, is being directionally neutral. Again I'm never long nor short. I'm simply neutral on any and all opportunities. 

For example, if price action breaks a dollar long, I'm willing to get into the position and ride it to $1.25. With that said, if the long opportunity fails and $0.90 support breaks to the downside, I'm willing to short 90 cents all the way down to 75 cents. The point is we, as traders, need to be 100% directionally neutral. There is no value in caring about long stock or short stock, but understanding whether or not there is an opportunity that you can take advantage of.. Again the job of a Trader is to be neutral and to be completely opportunistic. This is an attitude that should be carried through the equity markets, option markets, forex markets, crypto, Bond and any other speculative asset class you decide etc trade.

Check out how this position was hedged 
into a 100% intraday play!

As you saw in the video above when I was entering the market the idea was to get long. The long setup failed, what happened next?, A key injury level rolled over and broke. That intraday support level that was propping price action up fail so the approach there is to get short the stock. I initially had a long thesis because that's where the high probability pattern was presented having said that high probability patterns fail not all the time but they do fail and when they do fail the best thing you can do is not necessarily walk away from the trade but employ the strategy that will allow you to take advantage of that failed opportunity.. in this case it was getting short using options.

I’ve been in the Finance space for close to 10 years now and I worked for one of the largest trading academies for 2 years before venturing off on my own to start J. Lewis Trading. I did so because there was a common theme with how clients and customers were being treated.

I hate to say it, and I’m sure you probably already know this but the problem with the Trading Academy Industry and the establishment that runs the game is that they DON'T respect the good people that come to them for help...they simply take advantage of you, confuse you and leave you hanging…

With that said, we have changed things up. We have offered the level of service and customer care with your success in mind…One of the common traits we have found over the years with our success stories is that they are INCREDIBLY COMMITTED to the process. Our Top Producing students have laser focus…and with them “success” is the only option!

I want to work with you! I want to show you the path to profitability…jump on the expressway to becoming a well seasoned trader!:


About Author: Julian Lewis

I have been trading for close to 10 years and have been a Trading Performance Coach for the last 7 years! Trading is not as difficult as you may think! We’ve been made to believe that only a small group of hyper intelligent mathematicians and rocket scientists can run Wall Street. That idea could NOT be further from the truth.
My goal is simple…I want to do two things for you! First, I actually want to get you trading the markets successfully so you can take your power back and own your own time!!! Second, and this is an IMPORTANT one…I want to save you from falling victim to the establishment! I want to save you from their predatory type business practices that they have…These guys only have their best interests in mind. How do we know that? Just look at the false promises. Listen to the narrative…It’s truly criminal!
I want to be part of the solution to what has been a HUGE problem for ages! Our team is here to offer you a healthy alternative. Something that the public has been asking for. You asked for it and we delivered it…Change is here.