Tuesday, 8 October 2024

I took some flack yesterday

 
   
     
Yesterday, the markets looked ugly
 
 
But that’s only if you take a very “zoomed in” view. Which, I think, most people do. They get caught in the action of the day and panic – especially if all their holdings are lighting up red.

I took a little flack for posting yesterday that not a whole lot was going on - nothing of conviction to note.

People acted like I was ignoring the market crashing!

But folks have to remember to “zoom out” a bit…

Zoom out just 30 hours or so and we’re already near yesterday’s highs…

 
 
Zoom out a bit more and we’re in a massive bull market…
 
 
Just to be clear, that doesn’t mean I am ignoring potential downside.

I think that’s very real.

If you watched my “Shockwave” presentation today, you know I am taking that seriously.

But here’s what I think is just as important:

You can’t have a quick trigger finger in this market.

We live in a time where global conflict, Fed involvement, tweets from Presidential candidates or EV business owners, and a ton of other things spike the volatility of the market.

Trying to react or respond to every one of those things is what I call the “meat grinder”...

It puts you in a position where you are chasing the market, flipping your bias back and forth and probably paying more in trading commission than you ever had a chance to make.

Instead, I think having a medium to long term view with clear levels that can dictate your decision making is a lot better approach (both for potential profits and mental health).

And, of course, trading dynamic strategies goes a heck of a long way too.

You’ve heard me say it a thousand times, but once more for good measure:

Regular options are broken. If you’re just buying calls or puts and chasing direction, it’s a recipe for disaster in my view.

If you can learn to twist options like we do in Jump Trades (or my other strategies for that matter), I think you have a significantly better chance of winning in these markets.

But, regardless of the trade structure you’re implementing, just remember to “zoom out” first.

Nate
   
 

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