What I Learned This Week

1) Again, I recognized that not every trade has a lesson to teach. Sometimes when I lose on a trade, it’s just because the market turned in a certain fashion, not that I committed some kind of trading error. As I have mentioned in the past, avoiding the periods of self-recrimination that can often follow a losing trade helps me to focus instead on finding the next winning trade. Read the rest of this entry »

Fighting back – aggressively fighting back from adversity must be in our shared DNA as traders because so many traders pride themselves in their ability to fight back from a loss. Some traders say they only trade really well when they are fighting back from a loss. They say they wish they would be so focused and effective without having to first be down for the day.

My take on all this fighting back is that it is wasted energy.

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Generally, I am against being negative on the market. After all, the best days come at the oddest times. However, this week may be an exception.

First, the VIX (the CBOE’s volatility index) has spent most of the year in the high twenties and was over thirty in early March. Today, the VIX dropped below 20. This is less volatility than we have had since last summer. Read the rest of this entry »

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To view the contents of this post, you must be authenticated and have the required access level.

To view the contents of this post, you must be authenticated and have the required access level.

To view the contents of this post, you must be authenticated and have the required access level.

To view the contents of this post, you must be authenticated and have the required access level.

To view the contents of this post, you must be authenticated and have the required access level.