Sorry to be a disappointment to “Weekly Round-UP” fans. I want both of you to hear the reason for no Round-Up this week before doing something rash.
This is election week in the U.S. and is consequently providing us with an object lesson.
The markets will be unpredictable. It is a time when I suggest that most traders stand down. There will be many who will feel that they can call any volatility and make their fortune with some shrewd trades.
I wish them well, and I want you to understand that it is not that I doubt some will do it. They will, but it will be pure B.S. luck.
That idea of placing trades on chance goes against the very core of what I am trying to teach here. It is tough enough to maintain discipline as it is without using Lady Luck as an indicator.
Some people have to learn their lessons by being bitch-slapped by the market. Don’t be one of those.
We know that the market -the broad markets, especially- are living breathing things because they are made up of all of us. That is our hopes, fears and emotions generally are the driving forces in the market. This means that the market has already priced in what it believes the outcome of the election to be.
If the market does not move much, it means that was the outcome anticipated. If there is a large move, the opposite.
The problem is we cannot be sure of any of these things.
So, we have an open position in TBT with a trailing stop. I shall leave that untouched.
We will not be entering any trades this week. Don’t fret, I have ideas to fill the void, so keep an eye out for posts on this site.
As always, if you have any questions about the investment world, or your trading in particular. I am even prepared to chat with you on the phone if you wish. No agenda or obligations – drop me a line: firstname.lastname@example.org.