There are two kind of trades_

_there are winning trades and there are learning trades.


Maturing as a trader involves deep desire to be one, discipline, focus and the ability to make decisions. How do you get to this point? Make decisions and learn from them! I openly admit that I have made lots of mistakes in the market, and I still make mistakes. Thankfully, I’ve learned from them and now try my best to minimize those mistakes. The key is to make a decision without worrying that you might be wrong. As long as you learn from it, you can correct it the next time. Again, just make the decision, and make the money or learn from it. Wash, rinse and repeat.

Common sense isn't common. The crowd is invariably wrong at the extremes.

The plan remains the same

RE_READ YESTERDAY'S POST

markets now

The short-lived pullback and subsequent reversal didn’t do much other than perhaps work off some of the overbought condition on Monday. As of this morning, we don’t have any new patterns to work with other than the overall trend, and while yesterday’s pullback failed to do much damage, it still invalidated Monday's breakout for Russell which is still important. While this divergence does not take priority over the continued strong price action, the bulls still needs to see that breakout occur as it will provide confirmation and increase overall probability that we will see the S&Ps rally extend itself back to the 2007 / 2008 highs.

While the market held firm again in yesterday’s weak pullback attempt, the intraday price action has become too difficult to navigate profitably as pattern failures are becoming more common in the whippy, low-volume, program-controlled action. This provides us a small tell that we could be starting to transition into a different environment than what we’ve seen, so must have patience here and use selective positioning until we have some better patterns to work with beyond just the intraday setups that come our way. 

socialist reality grows stronger

The solution for too much debt is not more debt - although that's what Europe and others seem to think the solution is. It's crazy. They should be forcing countries to cut spending, they should allow creditors to take big losses, they should allow people to go bankrupt. The idea of printing more money and buying worthless bonds instead of allowing people to go bankrupt is how you destroy an economy.


The way capitalism works is if you make bad investments, you lose money. In the US they've had states and cities go bankrupt a number of times, but it didn’t end their existence and the US dollar. You start over from a stronger base once you acknowledge your mistakes. That's what's capitalism is all about. Sadly, capitalism is increasingly practiced only in theory, while the statist and socialist reality grows stronger.