Saturday, March 28, 2015

Cash as a position and why the best thieves never get caught


The best thieves never get caught.  Let's talk about how they do it . . . yeah, I know what you are thinking: 

WTF does this have to do with trading? 

Bear with me.

The best thieves make it easy for themselves. If they come across a house with a "beware of dog sign", they move on to the next house. If a car door is locked, they'll move on and quickly find the car that is unlocked. There is no honor in making a buck the hard way, just moving on to what is easy.

Now you get it, don't you . . .

We want the easy trade. If things get difficult, we move on. Just as a thief can always find an unlocked car door, we can always find that next great setup. No need to take on average trades when tomorrow a slam dunk setup will emerge.

Right now the market is in a tough spot. While some of us can find good setups, most will find this market difficult to trade. There is no shame in that.  When things get tough, remember, cash is a position. Better to protect your capital and live to fight another day than lose it on tough trades.

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1 comment:

Mike said...

Such an outstanding share! Thanks for spending the time to talk about this topic here on your post!
trade stocks for a living