High Probability Moments In Time

Trading is not about being on the right side of the market each day. That’s impossible, especially when it is Wall Street’s job to lure people in like a newborn baby to the tit.

Feeling comfortable and bullish at the end of the year? So was everyone else. Snuggle up and start drinking. By February 11, there was no one who wanted to be long this market. No one. And if you aren’t long, then it’s time to be short. Right?

Since the February 11th  low on the $NQ at 3862.25, we’ve rallied, as of this writing, 355 Nasdaq points. Straight up. Every shorts worst nightmare. This can’t continue, right? Oh it can. And it will until the last of the shorts have had their heads ripped off.

The answer to this roller coaster? Patience. Yes, patience. The only thing a market does is suck people in, make them comfortable, and then rip their head off. That’s its job. It is an equal opportunity dream killer.

Wait for high probability moments in time to pounce. No chasing. No conviction. The markets always revert back to the mean. You will make the most money when your fellow traders forget that fact.

Get more John Carter insights at Simpler Options.

John Carter

John Carter President/CEO

John Carter’s father was a Morgan Stanley stock broker. One day during high school, John came home from the mall where he was working at a store making cookies. He had saved up $1,000 over the course of a few months and his dad told him that he and some of his friends were going to buy “some call options on Intel” the next day. With his father’s direction, he bought 10 call options at $0.75, and sold them a few days later for $1.50, doubling his money. He was hooked and has been trading ever since—going on 25+ years now.

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