You may have notice last week there was no daily blog. In the market, there comes a time when the best thing to do is sit on your hands (do nothing). Most people invest to the long side only, I don’t want to temp readers with new long ideas when the market is falling out of bed. The power of having a systematic trading system is when the market rolls over your stop-loss orders are triggered, and cash builds in your account. This should be a given, not something that needs to be blogged or bragged about on social media.
I see no justice in telling my readers where I buy or sell a stock because not every trade follows the same strategy or looks for the same outcome. There’s many times I’ll put on a trade only to be stopped out minutes later. I also have no idea what each reader is looking for? Do you want to swing trade, are you trying to scalp a stock for a few pennies, are you looking to trend follow with a wide stop-loss order, just trying to entertain yourself at work, or are you trying to save for your child’s college fund? Please read this blog post – Everybody Just Wants A Stock Pick
I’ve notice on social media that people love to form cliques, to the point they’re almost cult like. New market participants are looking for answers, and if anyone questions their prophet it makes grown man act like characters from the movie Mean Girls. Or if you don’t follow their trading philosophy then you’re wrong even if you outperform. Bragging on social media that your account is currently in 80% cash after the market rolls over and stop-losses are triggered, is just as much of a virtue signal as bragging about going all in weed stocks at the beginning of August and your account is now up 100+%. As Paul Tudor Jones says,
“Stay humble. “If you make a good trade, don’t think it is because you have some uncanny foresight.”
I was taught if you give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime. This is where people have to take responsibility for building their own trading system which includes stop-loss orders. Then it’s a given that when the market rolls over stop-loss orders are triggered mitigating losses. This way you’re not relying on a prophet to tell you when to sell. If you don’t have a systematic trading system in place please read this blog post – Trend Following System Components
Ask yourself – do you take responsibility for your own financial future, or are you one of the sheeple blinding following others for answers?
Have a great day! 🙂
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