ive been in cash since 2008. Why, i totally blew up my trading account prior to the 2008 crash if you can believe that. I made very few small time trades the past 10 years and missed this huge rally. I started a business in 2007 and never looked back but i still follow the markets . However, i realize if i get back into trading i know i will revert back to my former daytrader self which i can absolutely never do. I am sitting on a good amount of cash and will start nibbling on some ETF’s when the time comes. When i was datrading i made a lot of money and then lost a lot. Finally i made one of those demoralizing trades that made me throw in the towel. It sucked and i went through some very bad times because of it. This basically means i was never a good day trader, thats really what it boils down to. I went through the 1997-2000 tech boom and bust and then the 2008 melt down so i am familiar with bear markets. This is a bad one and what is troubling is we really dont know the exact cause. Staying in cash is sometimes the best investment.
Most traders I have ever met have blown out at least one account... It's part of the deal... It's dark and tough but not the end of the world... It taught me a lot and lead me down the road to real risk management
Amen. The market right now is pointing to a crash. This period will be known as the trump dump. Don’t go long in equities right now (there are exceptions, but very few stocks). The market condition has changed since oct. It is time for the bear to come out. Join the party and short the market. I have no problem shorting. It will be investor who will suffer.
Same. I think this one is particularly dangerous because of the abysmal liquidity. Since that Feb 2016 bottom and the few limit down events (Brexit and election), it's been a slow motion blow off top (without any of the fireworks that we saw in 2000, yet the parabolic nature of the charts is basically the same). 2003-07 never got this out of hand and yet 2008 was a massive downside liquidation.
Yes, staying in cash certainly feels better in volatile times. But there is also the fact that you are missing opportunities as well. And if you lost some money then you are just like just about everyone who tries to trade. I lost lots of money before I figured out the way that it's best for me to trade. That's what everyone needs to do: find the method that suits you and then trade that way, and trade small enough that you will not take you out of the game.
I'm very bearish.. like super bearish but let me tell you how bulls have now changed their stance on the market, it makes me wonder why everyone again after the fact the market is down 20% is all of the sudden bearish......again no one saw this coming, all those who said the bulls would run for years to come prior to this drop are now changing their attitude on the market, too late now!!
The best trade is the one that follows price. In a bull market be long, in a bear market be short. Cash is not an investment, it is not an adequate excuse for not finding a market which is bullish or a market which is bearish.
USD and treasuries are common recipients of equity sales...its a good trade in a bear market when liquidity is at issue. no?
Does that "nibbling" implies investing or daytrading ??? I think when people that say staying in cash is the best investment, they should do exactly that. Thus, no nibbling in the markets...no nothing or actually put in in an investment vehicle. There's just too many people saying that they are cash right now while still having money in their accounts to daytrade once in awhile whenever they get that itch that needs to be scratch...they then quickly go back to their former daytrader self. wrbtrader