How often do I have to say I don’t predict in trading. My last “Thoughts” was a bit on the negative side, mostly about what I see happening to our Treasury, the FED, the interest rates, the insanity of real estate prices and the ongoing war. The hedge came off and I thought we might see a bit of a rally and then get back to the bear move.
Little did I know that the market’s continued strength touched off a bunch of buy stops and I’m now 70% invested long in my sector etfs when I looked a few minutes ago. Apparently this move up is becoming a bit more widespread than I would have predicted. This is why you shouldn’t predict when trading. Measure the trend, go with it, and enjoy the ride!
Tom what if everything reverses again now till you get another signal to hedge again? Wont whipsaws like these cause huge drawdown? How do you avoid those? Or in your experience do they not happen statistically. Thanks!
Hi Tom, Could you recommend a method or your perspective on how much a trader can withdraw her / his trading profits to enjoy the earnings as well as continue adding to trading capital...