Friday Feature: Thoughts of a Pure Chart Analyst Part 1
June 5, 2020
Be Comfortable with the Uncomfortable Trades
A couple months ago when our big bearish selloff ensued and panic was in the air, I wrote a blog piece mentioning how this is just the beginning and I wouldn’t be surprised if we end up with riots and blood on the streets (see blog: Thriving in Bear Markets Part 1). Well, it’s only been 2 months, even I couldn’t imagine its happening so fast with civil unrest with many events triggering across the country, yet markets seems to be on an unstoppable bull run. How do you make sense of all this?
Can I be blunt and tell you that the market does not have to make sense to you. It does not have to make sense to any of us. Even the smartest human cannot make sense of it, so let your brain take a break and just accept it as a chart analyst. Trade the chart guys. There is no other answer. None of us really know what is going on or what’s going to happen. The only thing left is price action. So, let price action be the king and follow the trend.
Tim Justice at Tackle Trading used to tell me that trading is simple but not easy. Emotionally, this is not easy right now to have bullish positions on and watch the world fall apart. The simplest trend following trading system can be extremely hard to execute when you don’t even think the market should be bullish in the face of so many negative events recently. I had to learn to be comfortable with the uncomfortable trades, and just block out the noise, the opinions and even my own thoughts.
Your main concern is to execute your trading system based on trends regardless of what the rest of the world is doing. That sounds like total ignorance and almost crazy at times. But at the end of the day, you are doing this to make money, not to be right or to express your opinions. It’s that simple, yet not easy.
If you were to forget about everything that is going on in the world right now, how would you read this chart with RUT below?
Pearl Li. The Theta Finder. In the Making.
Pearl Li previously has been a product management professional for more than 10 years working at well-known companies such as Amazon and Nielsen Company. She took the leap in 2016 with Elite Legacy Education to learn about building long term wealth through financial market trading/investing. In 2018, Pearl happily left her job to pursue investing/trading fulltime producing theta style trading that generates monthly cashflow. She is thrilled to be a voice on the Tackle Trading platform to share her transformation as she goes through various phases of her growing experience.
Financial freedom is a journey
The Tackle Today series is brought to you by Tackle Trading.
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
# Sign up now for a 15-DAY FREE TRIAL #
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.
