Since we do not have any new longs or shorts tonight, I thought it would be nice to share some thoughts about the current market with everyone:
Well if today was not a perfect example of disciplined trading I sure don’t know what else would be. We did not have any new longs the past two market sessions due to my charts not giving me a single “buy me” signal. Then today we selloff on higher volume adding a distribution day right at the 50 day moving average on all the major market indexes. I am an extremely disciplined trader and have learned from the greatest stocks and traders of all-time. History ALWAYS repeats itself and it is doing it again. The greatest traders understood and understand when it is time to be fully invested on full margin and at the same time know when to be either fully in cash or have the majority of your capital in cash. Right now, in this very mixed market, the obvious play is cash. Only new investors without ANY knowledge of history would want to be trading (or feel like they need to right now). Thank God I have paid my dues and spent 15 years in the stock market. That along with reading 200 books (150 of them USELESS!!!) has given me the confidence to trade or sit in cash confidently knowing that the majority of the time I will be doing the right thing. Today’s action and my disciplined trading has paid off. Not only did we not buy anything new that hurt us today but by not thinking the market was going to shoot to the moon we held on to our three shorts that did not EVER give us full cover signals. This is the beauty of disciplined investing. You don’t have to trade with fear or lack of confidence. You KNOW the odds are on your side and eventually your day will come. For those of you that think you can get rich overnight…well you better build a damn time machine because that is NOT going to happen in a market like this. You needed to be around in 1995-2000 or 2003 when my methodology of buying breakouts would INSTANTLY pay off with 100%+ moves within weeks. Those days are long gone. You are going to have to learn that making money takes time in today’s market. I feel like I have the market pegged perfectly right now and can only give that to the fact that I spend ZERO hours watching CNBC or reading about the stock market. Did you read that? ZERO hours. I spend all my time looking at charts and even then I don’t spend too much time doing that. The noise is complete junk and the more time you spend reading about the market the longer IT WILL take you to master this game. Drop the BS and study history’s greatest winners on the long and short side if you want to do this for a living. Turn off CNBC and unsubscribe from ANYTHING you are reading in magazines about the market. If you decide to keep watching CNBC and reading those crap publications, that is on you. Good luck.
