The Best Strategies for Choppy Markets

by Roger Scott | May 18, 2026

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Let me clear something up right away — choppy markets don’t mean stop trading. They just mean you’ve got to adjust how you interact with the market.

I’ve gotten a lot of questions recently about what’s working and what’s not. People have noticed I haven’t been doing my usual 2 p.m. swing trade setups. That’s true. I did one Thursday because I thought we might have a couple more days of runway, but beyond that?

I’ve shifted gears entirely.

Here’s the thing — when markets get choppy like this, it closes one door for a week or two but it opens up all the other doors. You don’t sit on your hands. You adapt.

What’s Working Right Now

I’ve been doing tons of scalps, quick in, quick out. Scalps, snipers and high-flyers are working beautifully. The small caps we’ve been tracking are immune to what’s going on in the broader market, and that’s created a fantastic opportunity for traders willing to look beyond the usual suspects.

On the short side? We’re trading more to the short side in large caps right now and that’s been productive. The key is staying nimble, taking smaller position sizes and keeping your time horizon short.

What’s Not Working

Let me be blunt — diagonals, straddles and strangles are definitely not right now. And my usual calls or puts for swing trades? I haven’t been doing any of those traditional setups.

There’s a lot of danger with the market’s directional bias to the long side right now. I’m not saying you can’t trade — I’m saying be cautious. This environment demands respect.

One big reason I’m pushing caution is the bond market. We’re dealing with a structural issue there and when bonds break down, stocks eventually feel it. That kind of pressure can spill over fast, so staying nimble isn’t just a preference — it’s a necessity.

My Patience Principle: Wait for the close. Don’t exit on emotion or intraday wobbles — react only when a full trading bar closes below your support.

My Wave Theory: Wait for the clean setups. Don’t chase every move — focus on the highest-probability trends.

Mindset Reminder: Care less about being right on every call and more about aligning with probabilities. Don’t let recent highs or lows cloud your judgment — let the numbers lead.

For those asking how to protect retirement accounts, consider a simple volatility hedge. One example is a VIX call spread — buying a Dec. 17 call and selling a Dec. 23 call. It’s a thoughtful way to insure your portfolio against a volatility surge, especially if you put it on during quieter sessions.

Quick Tip on Rolling: Rolling a trade is just closing a losing position and starting fresh. Losses are part of the business — own them and stay honest with your P&L.

Look, I could trade forever without touching a long-side swing setup if I had to. There are countless ways to approach this market — you just have to know which doors are open. Stay cautious, stay nimble and take what the market gives you.

I hope that helps!

Roger Scott
Roger Scott Trading

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