The big question surrounding this rally is – has the market overextended itself a little? Are we due for a pause?
Ross certainly seems to think so – though he believes this will ultimately be a positive for the markets.
So, is the pullback starting? Let’s look at how the markets have been moving.
The Daily Direction
Note: All indexes closed marginally lower yesterday. No change in any of the index directions, however.
The Daily Nugget
“Here’s the essence of risk management: Risk no more than you can afford to lose, and also risk enough so that a win is meaningful. If there is no such amount, don’t play.”
Ed Seykota was a legendary trader who could have turned a $1,000 stake into over $350,000 during the 90s.
And what he said about the balance of risk management is absolutely correct.
Everyone already knows you shouldn’t risk more than you can afford to lose…
But if you don’t risk enough that a win would actually mean something to you – then what’s the point?
That’s the balance of risk that every trader must find…
And everyone’s ideal balance of risk will be different.
No one can teach it to you – you must discover it for yourself.
But what can be taught are valuable skills – like how to read the market and spot the juiciest setups using time-tested strategies.
That’s what we do here at Traders Agency.
So if you want to shortcut your trading success…
It ends in the next two days – then the price will shoot up again.
The Traders Agency Team