When the Market Surprises You: Adapt, Don’t Panic

Hey traders,

In our industry, you see it all the time:

Past performance is not indicative of future results. All trading carries risk.

And this week, the year’s hottest stock proved that to a lot of people when it reported earnings.

Not only was NVDA among the year’s hottest stock, but they blew out earnings in a major way.

If ANY stock should have gone up on earnings, it would have been NVDA.

Most companies would dream of putting out such a positive earnings report.

But the market didn’t see it that way.

And so the trades I put on Tuesday in anticipation of the stock popping ended up fizzling.

But here’s the thing — I’ve talked to you before about rolling with the punches.

This is such a key thing.

Because while I’ve got my strategy that works for me the majority of the time… At the end of the day, the market WILL throw surprises your way when you least expect it.

So it’s not enough to roll the dice and let the cards fall where they may.

And when that happens, you’ve got two choices:

  1. Panic and freeze: This is what too many traders do. They see a trade not going their way and either sell out for a loss or hold on, hoping for a turnaround.

  2. Adapt and thrive: This is what seasoned traders do. You don’t let a surprise derail your overall strategy. Instead, you adapt. Maybe you sell calls against your stock, like I did with NVDA, to generate income and lower your cost basis. Or you look for another opportunity that fits your strategy.

The key is to remember that no matter how solid your analysis, no matter how perfect the setup, there will always be times when the market doesn’t move the way you expect it to.

That’s why I always emphasize flexibility in trading.

It’s not about predicting the market with 100% accuracy — it’s about having a plan for when things don’t go as expected.

So while NVDA didn’t make the big move I was anticipating, I was able to adjust my strategy and still come out ahead.

This week served as a reminder: Trading isn’t about being right all the time; it’s about managing your risk, adapting when needed, and finding ways to target wins even when things don’t go your way.

That’s how you stay in the game for the long haul.

Enjoy your long weekend.

Trade well,

Jack Carter

P.S. In volatile markets like this, Nate Tucci’s Jump Trades is a must-see.

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