Wild Swings Makes Cash King
2021-07-23 | TG Watkins
In this post:
- What approach might not be for you if you find yourself losing money?
- When no gains can be viewed as a positive?
- What can you learn from past trades?
The market has had a few wild swings lately. While the down move was the easier one to catch, staying out of the market during times like these can be a wise option, too
As traders we certainly have an urge and itch to always be in the action and making trades, but if you find yourself losing money then maybe it isn’t your kind of activity. By not losing money, you are actually staying wealthier so it should be viewed as a positive when staying in cash despite the lack of gains.
I actually view it as a luxury to be able to decide when and how I want to apply my money to the market. When we can recognize things are more dangerous and step aside, I almost consider it a mini vacation — a time to relax because I don’t have funds on the line. When I’m in cash, nothing can hurt my account and there is zero stress.
Cash is a position — a luxurious one when the sharks are out — so this is when I can take a more objective look at the market and do some more studying. Perhaps look back at past trades and see what you can learn, then apply that knowledge to current possibilities. Don’t worry about not always being in the thick of things, especially when there is more probability of losing than profiting.
Your Profit Pilot,
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