Sometimes greed clouds simple reasoning. If you looked at the chart of the NAZ you'd see, plain as day, a downtrend. One that has been going on for hundreds of days with only intermittent relief.
Just what is it that makes a person think that he can pick the day that trend is going to reverse? To make REAL money, you have to OWN THE TREND, not fight it constantly.
To continually go long, while employing tight stops, is tacitly admitting that your concern is on the downside. Really, who would want to risk being stopped out of a stock that that they thought was in an uptrend? Nobody.
It's interesting that most of the conversations are about how, and when, to catch the low. Yet, very few are actually trading based on their true concerns, which ought to make them be short, not long. |
