≈ Or go watch the grass grow. ≈
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”
—Paul Samuelson—
Paul was an American economist, considered by many the Father of Modern Economics. He was also the first American to win the Nobel Memorial Prize in Economic Sciences. Listen to what the man said.
The landslide we experienced during the last couple of days put many traders in a permanent state of bewilderment.
It shouldn’t. You should be watching paint dry instead of riding a rollercoaster.
- Were you too leveraged?
- Were you loaded with Condors?
- How much was your max loss on each position?
- How many positions were you carrying simultaneously in your portfolio?
- Were you too confident?
- Did you bring the umbrella with you? The sun was shining until October 3rd but you know how opaque the future is.
It really doesn’t matter the reasons behind this February-like selloff (feels like yesterday). Anything can happen between now and sometime in the future. The markets ain’t rational so the final defense is simply our position sizing.
Here’s some advice: attend the Coaches Lounge, the Coaches Show and the Halftime Report. Ask for help in the Clubhouse.
The Coaches at Tackle are here to help you watching paint dry and the grass grow.
Chart of the Day
Feels like yesterday
‘Lightning never strikes the same place twice.’ or so this old saying goes. People who were caught with their pants down in February managed this last price correction like PROs, right? That old saying is a myth. Lightning can strike any location more than once. In fact, given enough time, it is actually inevitable.
Video of the Day
Building a Put Option
Coach Matt Justice shows how to enter a put option.
Today’s Lineup
TALES OF A TECHNICIAN
Hedging Naughty Condors
Iron Condors are hearty and can survive most environments. But mix in low volatility at trade entry with a deathly 12% nosedive and, well, prep the coffin because your bird’s going into the ground. For those that just began deploying monthly condors and were greeted with a loser right off the bat, my condolences.
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show 8:30PM EST
This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
