Most of you rookies out there have never traded a real correction. The new class of investors/traders have been spoiled, programmed to simply buy the dip. You get brokers with zero commissions, and are rewarded daily for simply buying the dip.
Back in 2005, when I really started to become an active trader, the environment was similar. Buy dips and be rewarded.
I was young, naive, and programed well by market forces. As I made more money, I wanted more. I thought I was a financial guru, and decided to apply leverage using options. Once 2007-2008 rolled around I was humbled. My small option account that I grew exponentially soon went all the way to ZERO.
I remember thinking back in 2008, stocks can’t possibly go any lower, so I made my bets. I was wrong. It opened my eyes to a lot, and glad to gain experience trading through it.
Never in my life, as a financial blogger, have I claimed to be an expert in the field. I am still learning everyday. I may not be a man of letters just yet, but I definitely earned a few stripes.
In no way shape or form am I calling this a top, although Mark Cuban may think otherwise, but I would like to give a word of caution.
Things can change on a dime. Do not be programmed into one set way of thinking. Just when you think a stock cannot go lower after being dismantled, think again.
Some of you are on a road to perdition. And, if you are young and playing heavily with leverage, you might as well take you money out and enjoy a nice trip overseas.
The stock game is glamorous until it isn’t. I remember first starting out, I hated the weekend, I wanted Monday back so I could trade. That’s not the case anymore. I fucking hate Mondays.
https://www.youtube.com/watch?v=ZKAAUEhvi5U
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And Act II: The Turn is just the memoirs with no omissions”
thanks for the insight
i clicked hoping you would somehow link the new jay electronica. Song is fire.
@larry,
Genius: http://genius.com/5002482/Jay-electronica-road-to-perdition/My-road-to-glory-was-road-to-perdition
+1, appreciate the candor. Winter is coming at some point – this BTFD shit can’t go on forever. When it finally ends, going to be a lot of hurt feelings.
Instant classic. The post, I mean.
Great advice to all traders RC, thanks. Leverage is great until it ain’t and stocks are hot until their not. Caution is required at all stages of any market cycle. Good luck to all
Refreshing. RC = Class Act.
Great post RC. Thanks for sharing!