This is what I intend to do this week :
1. to rebalance my portfolio - ensure profitable stocks, currencies and commodities are either cash out partially or increase my trailing stops to avoid backlash
2. to reduce my long exposure - avoid spreading too thin - there are always something to long if you look hard enough ,haha. To keep the main thing the main thing is a challenge for many, including me so that would need some time to do it.
3. to identify good shorting counters - because it is going to happen fast and without prior warning sometimes, by early identifying which assets to zoom in help to overcome the unnecessary panic attack later. When the light is out, everyone panics and run for the exit. Don't be the last man standing.
What would you do ? Please share your comments
https://www.zerohedge.com/news/2018-01-09/morgan-stanley-people-have-hard-time-even-imagining-how-market-could-decline - good read
1. to rebalance my portfolio - ensure profitable stocks, currencies and commodities are either cash out partially or increase my trailing stops to avoid backlash
2. to reduce my long exposure - avoid spreading too thin - there are always something to long if you look hard enough ,haha. To keep the main thing the main thing is a challenge for many, including me so that would need some time to do it.
3. to identify good shorting counters - because it is going to happen fast and without prior warning sometimes, by early identifying which assets to zoom in help to overcome the unnecessary panic attack later. When the light is out, everyone panics and run for the exit. Don't be the last man standing.
What would you do ? Please share your comments
https://www.zerohedge.com/news/2018-01-09/morgan-stanley-people-have-hard-time-even-imagining-how-market-could-decline - good read
Note
Despite the VIX breaking out of this triangle and hitting a high of nearly 13 (12.81), the S&P500 bulls are not quitting, as yet. This contradictory patterns is confusing traders when it is supposed to be negatively co-related. That means equity moves up, VIX goes down and vice versa. Then again , in the world of charting, nothing is certain but one thing is clear is something is brewing underneath and it can be massive implosion. Could it be the crash of the bond market ? If it is, then the equity market would have more rooms to go up. let's see
Note
bingo, thank you mr marketNote
if you look at this chart you would notice the spikes up are very fast and once you missed it , it is unlikely or seldom retrace to give you a 2nd chance to long. Thus, when it is in the range, you have to get in if you want this piece of action. Of course, there are many ways to short the market as well. Do what you are comfortable with
Note
nothing is certain in the market except changes. Sounds cliche but it is true. One moment you could be celebrating and another you may be crying.....Learning to take profit or having an exit strategy is crucial. A bird in hand is worth two at the bush, I learnt this the hard way over many losses in the past.
Had you taken 50% of the profits and this sudden downswing hits you and strike you out of the market, you still have 50% profits + capital or else..........you could face margin calls and bust your portfolio.
Over confidence is another emotion that traders need to be mindful of. The market as I have said is a reflection of our emotions - greed, fear, envy, procrastination, etc are all displayed in your own trades. Reflect upon your wins and losses and dig deeper and you won't find it hard to understand your underlying motivation behind it.
Know thyself - Socrates
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.