One of the most frustrating aspects of trading is the idea of taking a pass on fast gains in the interest of discipline. To always look at the market through the prism of the potential risks involved can seem tedious and not very fun. There is not much comfort food I can offer you for that, other than to say that risk management is what separates those traders who blow up their trading accounts from those who consistently grind out a solid return.
With those ideas in mind, the updated charts from last evening of the leading indices and sectors illustrate why I am reticent to be aggressive on the long side at this point in time. Although there is certainly the possibility for an imminent breakout of these falling wedge patterns, to chase that potential breakout right here, right now would not entail a favorable risk/reward profile, in my view.
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Guys around here’ll tell ya… you play for a living.
It’s like any other job. You don’t gamble. You grind it out.
Your goal is to win one big bet an hour, that’s it.
***Get your money in when you have the best of it, and protect it when you don’t.***
Don’t give anything away.
Knish.
Feel ya on that one – after yesterday’s session, I vowed no matter what happened today, I was going to trade anything.
Discipline and Patience are KEY to trading!
+1, especially in this kind of market with late day ramp jobs….