My biggest losses didn’t come from poor entries, but from moving stop losses because the position size was too large to accept the initial loss. This “more room” approach invariably leads to even greater drawdowns 2.
Market consolidations and corrections are designed to frustrate, drain capital, and sow doubt in a trader’s strategy, often leading to hesitation when an uptrend inevitably resumes 5.
The observation that Ray Dalio, despite his “end of the world” narratives, maintains a heavy allocation to tech stocks suggests that even prominent bearish voices may not fully commit to their own dire predictions 4.
An unpopular opinion: It is entirely possible to achieve profitability in trading while simultaneously maintaining a fulfilling life outside the market; they are not mutually exclusive 24.
While pullbacks are often anticipated, market participants frequently react with surprise. Expect the VIX to touch its peak and jump 30%3.
$SPY option flow shows a significant bearish lean, with $206M in puts versus only $6.9M in calls, a 30:1 ratio. This represents actual capital movement, not mere sentiment, and should not be ignored 6.
Basic trading rules: Pay attention to insider buying; avoid stocks below their 200-week SMA; ignore stocks hitting new lows in a market making new highs; if a stock is down 50% in a bull market, it’s typically for a fundamental reason, not an “opportunity” 11.
Focus on the process and adhere strictly to your trading plan for each holding. Always use stops and keep emotions out of decisions. If your specific trade setup is not present, wait for it rather than forcing a new position 26.