Let's buy, no wait...Just Kidding!
Updated: Oct 30, 2018
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.