If the world had to choose one strong leader during a global crisis, who would be your first choice ?
A) Vladimir Putin
B) Donald Trump
C) Xi Jinping
D) Volodymyr Zelenskyy
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Sold our $LEN and $DHI at a nice profit this morning. $LEN may pop on earnings tomorrow, but I decided to take the sure profit and get out while the getting is good. Also trimming some of our other profitable names that are extended. This allows me to hold partial positions through pullbacks with stops fully "financed" - effectively eliminating risk while banking some coin.
The market - along with many stocks - is getting extended and due for a pullback. If the indexes run up from here, I would definitely use the strength for selling into. With that said, the popular averages are indeed overbought with sentiment starting to get overly bullish. And while short term, this could limit the upside, longer term it's a sign of strength and bullish.
Favorable seasonality and a recent dovish "lean" by the FED will likely put a floor beneath the market. Pullbacks on the $SPY should be contained to 3-6%. With the market starting to broaden out, I wouldn't get too caught up in trying to figure out where the "market" is going to go next. Personally, I'm taking a bottoms up approach focusing on individual stock setups, buying the breakouts, and trimming based on individual sell rules, not a top down or macro view.
With the market improving and setups proliferating, it's a great time to join our winning team. Make 2024 your best year ever. https://t.co/JXzFFTmMtn
Consistent big returns require:
1. Concentrated positions (at times)
2. Relatively high turnover
3. Keeping losses small in relation to gains
4. Nailing down decent profits into strength
5. Never letting good size gains turn into losses
6. Sitting in cash for extended periods
7. Never averaging down!!!
Trading is a business and competition of discipline. Instead of trying to make the most money, focus on having the most discipline. Master that, and the money will follow.
A poor person will come to a rich person and ask for money... and then take that money and go do exactly what has kept them poor until they need money again. When I was poor, I did just the opposite. I found successful people and said to them... "don't give me money... please give me sincere and truthful advice." Then I went out and replaced the stupid shit I was doing with the things they told me to do. And THAT is why I'm rich.
There are two disciplines you need to develop to become a great stock trader. 1. the ability and willingness to stay put in cash when few stocks meet your criteria, even when the indexes are rallying and everyone else is making money. 2. the willingness to trust and trade the individual stock setups, even when the news is bleak, you're scared to death and everyone else is screaming the end of the world is coming. Bottom line: you need to learn to trust the stocks.