Max: You are correct, but only partly as I see it. Sometimes we, as traders, need to look at the market fundamentals and sentiment in an attempt to see where we MAY be going. Also being traders, if we exit a position, there is nothing wrong with getting it back lower....or higher, if that be the case.
It is a very dangerous tactic, as a trader, to not take a loss ..... but as an investor, it is a very important fundamental discipline. In the near term, it doesn't matter how good these companies are or not, they will fall with Naz as it falls, or rise with it as it rises. There simply isn't enough buyers in the market right now, and we cannot get by our interest rate concerns. For the first time this year, I am concerned about the market.... as explained yesterday in my www.tigerinvestor.com article.
You have an iron stomach, which is very good..... and you are also wise in having a large amount of cash on the side to take advantage of further declines.....however, many traders are invested well into margin here and it violates a fundamental trading strategy to ride out the storm into obvious weakness.
With that said.....I am out of NPLS today at 19 1/4.
and....into AOL at 101.
Trade well all.
Tj |
