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Let's buy, no wait...Just Kidding!

Updated: Oct 31, 2018


"Obvious Danger" Sign

Whoa! Market volatility is taking traders on another rollercoaster ride! And it doesn't look like it's stopping! Volatility is a sign for obvious danger in the markets.


But, it sure makes for a fun trading environment! For prepared traders, that is.


It's a lot of fun for traders who are prepared, who plan out their trades, who manage their risk, widen their stops and reduce position size. For traders who know their plan, trade their plan and execute their plan.


It's fun for traders who are not full of fear, and who don't get greedy. It's fun for traders who are comfortable taking risks but manage and control that risk.


But it isn't very fun for those traders who grab the wrong end of the chainsaw.


Unprepared traders can end up being oblivious to the obvious dangers. They consequently engage in doing the wrong things that end up being pretty obvious mistakes when the dust settles.


Experienced traders have likely ignored obvious danger once or twice....or many times in the past. They've been burned enough, hurt enough, cut enough, lost enough that they eventually learn to prepare and plan. But they still get nervous.


Feeling nervous is completely natural and normal. The markets can cut you, every time you get in just like it's possible every time you turn on a chainsaw that you could injure yourself. That possibility is increased during these volatile times. So you must have preventative rules in place.


The feeling of nervousness is actually good because it will keep you aware of the dangers that are real.


Obvious dangers, like not touching the wrong end of a chainsaw.



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CFTC Rules 4.41 - Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, because the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. 

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