Irrational Market Offers Chance to Position

Sometimes moves happen in markets that are against the fundamentals. Today might be one of those moves. These kinds of moves offer the position trader two opportunities. One, if you had a position and the market moved your way, you get a chance to take it off for a profit. Two, if you don’t have a position, it’s a good opportunity to initiate one.

Of course, that leaves the last and least desirable option. If you had a position and the market moves against you. If you understand why the move happened, and have extra capital, use the adage of, “When in trouble double”! Put a few more on, watch the market and see if it comes back your way. Of course, know that if the market continues moving against you, you will need to pull the plug. No need to go out in a body bag!

Sometimes trading is akin to weathering a hurricane. Horrible to go through it, but relief when you see the sun come up the next day.

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