Buen post ayer de un trader de bios (al que b2k consulta muy a menudo):
An hour and a half until open and it looks like the markets will highlight the dangers of holding overnight in these volatile markets. While yesterday was filled with a buffet of trading opportunities, it looks like today will give back much of those gains.
This highlights why we have this "trading" board. When it comes to investing, there is no "one size fits all". Currently, there are many who are scared to death of buying anything and the boards and Twitter are filled with comments of how high a cash position folks have, how they can go for a year or two without buying anything as they wait for the much anticipated correction.
I get it, I understand their fears. Every day I watch excellent gains, like yesterday, get taken away and investors have to climb the hill once again to try and get back to where they were. These are scary times for investors. But there is also an old saying that has been around forever on Wall Street and that is "don't fight the trend". And it has been around forever because it is true.
Those who have been so fearful have been missing much of the historic bullish gains made by the markets since the Spring Crash of 2020, when COVID made it's appearance to the world and changed all of our lives. "Fear" is one of the two great enemies of all investors, the other being "Greed". Those who choose to sit out are missing opportunities that don't come along that often.
Most traders I know have had record returns since early 2020. Even better, those gains are normally in cash by the end of each trading day. I understand, "trading" is not for everyone and I would not encourage most investors to try and change their style.
What I would advocate is do not let fear keep you from participating in one of the Great Bull Market moves in all the history of Wall Street. The "trend" is what it is until it changes. Tweak your system just a little bit ... lock in some nice profits rather than hang on and give much of them back, as it looks like we could see today. Not one of us can buy back anymore time once it has passed.
Do not let fear paralyze you into doing nothing ... adapt a bit and see if you can't profit from the opportunities that are still out there. Yes, the time will come when "reality" slaps us all in the face and it will be time to pay the Piper ... it always does. But stick with the trend to see happening in front of you. Watch for the strong stocks that show good relative strength on bad days and consider them for purchase on bad days with low volume. Good trading to all.