Wednesday, August 17, 2011

Time for Experimenting

When the market has been as volatile as it has lately, its time for experimenting.

On Stocktwits IWO to the close and Stocktwits Brunch, Steve Place has mentioned that if you trade as a hobby and don't have to be in this market, then don't be. It is really interesting to watch the video from the last 2 weeks, throughout this draw down. When I compare what I thought was happening to what actually happened, there was quite a divergence. Volatility can fool you into watching things at too narrow a time frame. Go back and switch all your charts into weekly time periods to see a different perspective.

So I have been playing with an option simulator to learn how to make money in a down market.

Are we done with this trend? Probably not. It takes a lot longer to get through these things than we think; However, I am taking advantage of the situation to watch/buy good cheap stocks and to learn how to trade in this down market.

But the market sometimes does things we don't expect.

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