The markets are not to be trusted. They are driven by cold logic. You know who else used cold logic? Nazis. The soldiers gunning each other down in the financial markets are robots. They were designed by humans but empathy cannot be uploaded.
They care not for their fellow man. Your best defense is to develop your own robots to fight back. If this skill set is beyond your capacity, then form an alliance with a stranger’s robots and invest hours understanding the inner workings.
Certain conditions call for certain market approaches. What worked 2 years ago is not nearly as effective today. A few things remain the same—auction theory is an honest guide to short term behavior, and Exodus continues to dominate FinTech.
In fast times like these your plans (written outside the heat of trading hours) will be tested. Afterwards there is a good chance you will need to tweak your plan. It happens all the time. Remaining stubborn and static is how you end up a cadaver (extra Robert Durst).
I rolled out of QID and into QLD too soon. I felt special, if only for a moment, when we ripped 50 Nasdaqs higher right after I swapped bias. Then we rick rolled, rallied, and rick rolled again. I’ve added to my QLD around the current lows.
You hear “losers average losers” and other mantras spouted off. Please, ignore them, find what works for you, and have a plan. Many come to trading because of the freedom it promises. But ultimately you might find yourself following lots of rules. At least I do. I know my limitations. The good news is you get to write the rules. The hard part will be following them, especially if you are an impulsive creature like me.
I stuck with BIS to see if the ‘ultimate comeuppance’ is destined to strike the biotech investors. I have a touch of NUGT left too. I feel neutral. However I do not trust these markets. Come noon Sunday I shall have a more firm bias. Three consecutive weeks of bear calls has me sort of in love with my model, but it’s best trade is its next trade…I hope.
Now I must make haste to a poolside for summer is drawing to an end.
If you enjoy the content at iBankCoin, please follow us on Twitter
The reading on my proprietary office banter sentiment gauge is pegged oversold. Just overheard “Markets are down big today. Damn Chinese lowered their money.”
I shall ride my Twitariot to Zuckerbergian riches!! After 200,000 value sim iterations all parallel outcomes have been evaluated and $22.71 deemed TWTR’s mean value. With my cost basis being well within 1 sigma of said mean I will endeavour to be content with my perfectly imperfect entry.
At least until i get puked out next week.
nice post!