Remember the pain and don’t be complacent
We’ve got this week’s Live Q&A Chat coming up at 2pm ET. Let’s get ready to rumble! Ask me anything or email me at support@tradingwithcody.com and I’ll answer your question in the transcript we send out later.
Most folks, including me, thought stocks would sell off if Trump’s poll numbers rose, but his numbers have risen lately and he’s even leading in some polls – yet the Nasdaq is trading at all-time highs. Are stocks still trying to price in a Hillary Clinton victory and fully expecting a Clinton victory as her odds are still 2-1. http://projects.fivethirtyeigh….
I won’t vote for any Republican Democrat Regime candidate and to be clear, the question isn’t who do you think will win or who do you want to win. My question is more about the stock markets though — do you think the stock market is scared of Trump winning? If so, shouldn’t it be selling off now that he’s been moving up in the polls?
I’m interested in hearing from you dear Trading With Cody subscribers. Who’s more scared right now, the bulls or the bears? Are any of you out there scared right now? Maybe we should be. It’s always best to get scared when others are complacent or greedy and the stock markets are hitting all-time highs. Take some profits on some of your largest positions. Trim a little of some of your stocks that have run 50% or 100% in the last few months. Doesn’t have to be all in our all out or drastic. Just trim 5% or 10% of some of your biggest winners. Sell some of your losers or those names you don’t have high conviction levels about.
The Nasdaq and many of our largest positions like Facebook and Amazon are at new all-time highs right now this morning. We’ve had a lot of exposure to the right kind of stocks for the last few years and the last few months and the last few days. Don’t be complacent. Likewise we can add a few index puts here and there as you’ve seen me do slowly but surely recently.
Trading and investing is hard, don’t ever forget that, especially when it feels easy. Remember how scared you were when Brexit hit or when the markets sold off 1-2% per day for weeks on end. Remember the pain. Don’t be complacent. Just a friendly neighborhood reminder to stay vigilant, objective and mindful of the ups and downs of trading and investing.
