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It is times like this when many traders are apt to ‘throw out the baby with the bath water’. Or in another manner of speech they ‘throw’ in the towel.
This is understandable as these have been tough times by any standards. One of the characteristics of market pullbacks is that they take different forms and ‘fool most of the people most of the time’.
I would expect however that most readers of the Trading Tutors Newsletter would survive considerably better than the average investor in such tumultuous times. Nevertheless I am sure some are licking their wounds. I am assuming the vast majority of traders were not short.
I am a great believer – from my own school of hard knock experiences – it takes a hard hit to sort out those that are going to make it. Those that will make it get back on their feet quickly and don’t let the past act as a hurdle – rather they take advantage of what can be learnt.
At times like this you need to take in the big picture and if most analysts are right we will see a move up – a relief rally – and then a final move down. A real possibility. That of course creates real opportunities. There is something in it for everyone. For both the bears and the bulls.
These are the opportunities you long for so don’t let them pass without trading them. At times like this you just have to work that little bit harder to get set but with the potential for great returns it is worth the extra yards where you can skillfully work the volatile times to your advantage.
At some point in time volatility is going to settle down and we could well be in the doldrums for some months when it really is tough to make money – and you will wish for those volatile times once more!
So dust yourself off. Revisit your plan and rules and try your hand at applying all that learned knowledge to really make serious money for yourself.
And to finish on another old adage – ‘when the going gets tough the tough get going’. Go on back yourself!
Enjoy the ride
Tom Scollon
Chief Analyst
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