Be Patient And Don’t Stress — But Be Disciplined
Sometimes I get so tense but I can’t speed up the time, But you know love there’s one more thing to considerSaid “woman take it slow and things will be just fine”, You and I’ll just use a little patience — Guns n’ Roses
It didn’t take but two days for the fear to creep back into the markets as the many of the highest beta stocks and especially most of the crappy speculative small caps have gotten hit for 10-20% from their recent highs from earlier this week. I don’t think shorting is going to be easy either as stocks aren’t going to go straight down.
The good news is that the recent smack down is again starting to open up some opportunities to dig into the sell-off and find some new names. I am hard at work on two or three names that are looking very interesting but I’m being patient about pulling the trigger just yet.
My best advice right now is to remind you to be patient and don’t try to time the big swings in the markets. Let the valuations develop, let the currents cross and let other people do the stressing and chasing. There are times to be aggressive, there are times that the risk/reward scenarios for buying get to be wildly compelling and you’ve seen me pound the table at times like those over the years. I’m just not in a rush right now. Consider this an Anti-Trade Alert as a reminder that it’s okay to mostly sit tight for long periods of time. Patience is a…
On the other hand, this is another reminder that if you were stressing and/or freaking out about your stocks back at the recent panicky lows from just like two weeks ago, that you are probably too long and should look at trimming some of your biggest positions and closing out a smaller position or two entirely. It’s okay to take losses to stay disciplined and keep the portfolio cleaned up.
We’ll do this week’s Live Q&A Chat next Monday (sorry) at 9am ET in the TWC Chat Room or just email us your question to support@tradingwithcody.com. I’m not sure I’ll have time to write anything up while I’m gone but if something crazy happens to the markets, I will certainly find the time.
