Trade Alert – More scaling, but don’t be a daredevil

Skill is successfully walking a tightrope over Niagara Falls. Intelligence is not trying. – Anonymous

Bulls got no mojo. The selling pressure continues to swamp the bids and the markets just keep fading lower. Apple’s down after trying to open higher, and I think we’ve got to let it sit for now before doing another set of tranche buying. And how about Facebook? After a strong quarter and proof of accelerating mobile monetization, the stock is back down below $19 a share this morning, after having popped above $24 immediately after the report. FB’s long-dreaded lock up expiration is upon us and I’m to buy back some of the calls calls we sold after the blow out quarter over the next couple days. Looking at the June 2013 expirations with strikes from $20-22.

But, let’s be clear – as I’ve been saying over the last few weeks, let’s not rush back into getting overly long. Perhaps we could navigate the tight rope that is the market right now, but it’s smarter to stick with our long-successful game plan of patiently scaling in and out of some of the fastest growing, most revolutionary stocks on the planet, and shorting welfare-queen companies whose days of profiteering are numbered.

Nobody knows when this selling pressure will end, but knowing our strategy, having hedged/shorted/trimmed before this sell off came gives us the ability to now continue to execute on that playbook.

One of the most important lessons I drive home here is the importance of patience whether you’re a short-term trader or a long-term investor. Don’t let your worries drive you to make mistakes.

Trading and investing is never easy, but with a steady-as-she-goes approach based on rational, cut-throat analysis, you can navigate these types of swings to big long-term success.

Daredevil Nik Wallenda Walks Tight Rope Across Niagara Falls – June 15, 2012