Trading Is Getting Harder Again, So We Have To Be Smarter Again

Mr. Market has been quite crazy lately as we all know. Dipping viciously, then rallying hard to the upside. Thankfully we were short and in a bunch of cash when it puked, and we got long some things at a good spot. Not the best spot, but a good spot.  The best spot was the bottom, but who gets those spots anyway?

It feels to me right now that after this big bounce, things could get more challenging again until the market finds its true sea legs.  As I’ve said, expect volatility and big intraday moves in the meantime. The market always does this after big selloffs and subsequent rebounds.

The key to success is to adapt. Realize the market isn’t ready for prime time, so trade accordingly. That means smaller size and tighter stops.

The way I have always looked at the market is that it gives you maybe five to eight easy opportunities to make good money throughout the course of the year.. I try to press my bets during those time frames and trade lighter through the choppy times. The only people that make money through the choppy times is your brokerage. They make money as you buy and sell and flip and flop and churn your own account. Usually to know avail.

Avoid the temptation to trade out of boredom and be patient for the really good setup. Its not that hard, but it takes work.  Stupid things get done out of boredom, in stocks and in life.

See you in the morning.



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