TTAM, this week, lost two trades in a row. As a percentage of the trade each were HUGE! HOW COULD I LET THIS HAPPEN!??
Let me tell you. Before I do, let me come to my own defense. It could have been more lost and it should have been 8 round-trips. I was lazy for a purpose.
I’ve been trading the market since 1994. Before that I was a lurker since 1974 (I began studying the market at an early age). I’ve seen many, many changes in how trading was done, rules and regulations, and as a big picture view I’ve had a top-down and a bottom-up perspective in more ways than one. But the one thing that hasn’t changed is Fear and Greed. These are two things that don’t control the market but drive it.
Whether the market is going up or down the one thing that counter-acts the drive is indecision. This is like a brake for the market. The stock market and investors generally, just like a deer in headlights, tend to freeze when there is a question as to which way it will go. That’s where the market is right now. It is a hard position to trade.
I have rules that would preclude (or so I thought) me from taking such large losses as I took this week. Unfortunately, old habits die hard. The one rule that got to my profit picture this week was that there were enough drivers in the market to overcome any braking that might occur.
It seems that the brakes are being applied at just the right time to make the market question who is driving; fear or greed. That, of course, is another post. I only have one rule that covers this time, and until the voices in my head tell me differently it seems that it’s the rule I should be trading by. “When in doubt, stay out!” But I can’t so I’m going to be asking the same question The Pragmatic Capitalist asks; “Where are we in the bubble process”?
The Pragmatic Capitalist threw out the question. Inquiring minds want to know. (Cue the Twilight Zone music).
THE PRAGMATIC CAPITALIST » » WHERE ARE WE IN THE BUBBLE PROCESS?
Related Posts
- No related posts found
