Tackle Today: The Dangers of All-In, All-Out
September 24, 2021
≈ There is an easier path. ≈
Traders,
Coach Tyler here. The market is now up for three days in a row, and Thursday’s rally was quite convincing. Many wonder if this bounce is the real deal and if we no longer need to worry about another down leg. Count me among the curious.
One reason for the question is because would-be buyers want a green light before gobbling up stocks again. No one wants to get suckered in if this is a dead-cat bounce and lower prices are ahead. Those that worry most are traders who live and die by a single decision. They’re either all-in or all-out. Thus, certainty is ideal before pulling the trigger.
If you’re one of them, I invite you to change your ways. There’s an easier, more incremental path. It’s a road traveled by members of my Team Phoenix Trading Lab. We don’t jump all out of the market any more than we jump all in. Instead, we gradually increase or decrease size as the market winds guide us. When adversity arrives, we reduce risk in part by avoiding entering new positions. And then, when conditions improve (like this week), we tip-toe back in by adding size and new trades. If the market bounce sticks, we’ll continue to build positions as they come across our radar.
If yesterday’s Tackle Today message wasn’t clear enough, I’m betting the path of least is now higher.
#TeamTackle
Chart of the Day
Crude Oil Percolates
Crude Oil held up like a champ over the past two weeks. Monday’s successful test of the 50-day and 20-day moving averages was the tell. It formed another higher pivot low and signaled the continuation of black gold’s nascent uptrend.
Video of the day
Focus on Fundamentals: P/E Ratio Explained
In this Focus on Fundamentals clip from Thursday’s Halftime Report Coach Greg explains what a P/E ratio is and how traders and investors can use it to better understand the valuation of a company it’s cost.
Today’s line up
Traders Lounge 11 AM EST
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Halftime Report 12:30 PM 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.
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