≈ Taking the roundabouts of the financial markets. ≈
We tend to choose instant gratification over long-term responsibility. We want to make money now so we don’t work over long stretches of time until, despite our cries, time is stretched for us and, at some point, we will have to embrace it: in order to build wealth, we must forego expediency.
That means we must take the winding road less traveled, meander, take the roundabouts of the financial markets, which bends our perception of time. Taking the right in order to reach the left and vice-versa. In a sense, we must love losing money in order to make it.
As once stated by Dr. Van Tharp, we don’t trade the markets themselves but only our perception of them. Therefore, the markets, and by mere logic, the strategies we use to approach them, are not a plug-and-play solution to make money (for some, still more like a plug-and-pray).
Mind comes before action. Reasoning and thinking are paramount. Action becomes pointless and baseless without them. While everyone in their hungriness takes the shortcut, we travel by midnight.
“And the road goes on forever.
And I’ve got one more silver dollar.
But I’m not gonna let them catch me no
Not gonna let them catch the midnight rider.”
Chart of the Day
FED’s U-turn sent the market volatility to 2018’s 15.0 support level. Low VIX equals no risk, right? No. Absence of evidence is not evidence of absence. It’s not because the market participants do not perceive the risk that it’s not there at all. It just reveals their complacency towards risk, implicating in more risk taking and leveraging. Time to buy protection. Safe sex or no sex at all.
Video of the day
How to use leverage to control an expensive stock
In this video, Coach Noah Davidson explains how you can use leverage to control an asset using a fraction of the money you think you would need to buy that asset.
Today’s line up
Trading Justice Blog
Identify Priorities and Stay Focused
One challenge in all our lives is to find the time, energy and attitude to do what’s important, at the right time, and make an impact. Why? Because we’re all busy. Extremely busy. If you have kids, work responsibility, participate in community or church organizations you know what I’m talking about. And, that doesn’t include hobbies, personal development and the things that really matter.
Traders Lounge 11PM 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.
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.