I sold out of my trading account this morning, which was smartly long, for a gain of 70bps. If I do nothing for the rest of the day, I would have locked in a loss of 8.7% for January. Should I feeeeel good about that, given the carnage is so much worse in nearly every facet of the market sans commodities?
No, absolutely not.
The market is always going to fuck with people and it’s my job, your job too, to figure out how to extract money from it. It’s a pointless and thankless endeavor. People who do not trade will never understand the commitment needed to trade well. In January 2022 I did not trade will, so with about +300bps in gains since Friday I figured now was a good time to slow things down and go to cash.
It’s very likely the market will scream higher now, leaving me in the dust. It’s also possible that the idea of that happening can permeate my psyche and cause me to buy a rip, only to soon find myself bogged down and mired in one red candle after the next.
So I won’t do that.
What I will do, honestly, is take a more methodical approach, one not rooted in emotions, to this tape. What I mean by that is avoiding the allure of stocks down big in favor of those working now.
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