Mine is when in doubt get out. Then do nothing.#1 rule that has saved me the most $ and head-aches, is (when in doubt, do nothing).
It's amazing how much clearer you think when you don't have a position.
Cut and run or double down?
- Thread starter bookish
- Start date
It's amazing how much clearer you think when you don't have a position.
If you want it to bounce back, then you want it to remain crazy. If it behaves rationally, then it will go a lot lower. It's a Fed-driven market. Has been for decades. Difference is that now Fed is trapped between supporting the market with low interest rates and more debt vs. inflation.
Thanks ET180. What is your thinking as far as it should (if it is rational) go a lot lower? I get that rising interest rates tend to push stocks down for a few reasons. Is that what you are focused on? Or something other than stock being too high given next to nothing interest rates that are about to end?
Thanks!
Thanks!
Yeeeeees, I was going to post exactly this. This is a true sign of a bear market. Most days, market starts up in a little rally, then gets HAMMERED to the downside. Been happening a lot lately. Not good.
Earlier, early morning rallies are the game for bulls that spreads lush greens all over trading terminal, mostly with the correlated pairs but now scenarios have changed! traders believes more in pull backs and think about filling the pockets rather than anticipating a positive trend.
%%
Good way to get a goal\ if its underperform. Everybody cant do better all the time , so good thing to look @ both sides of the trade.LOL
With a starting price of $7.50 now --$1.75 .
My 2-fiat cents of cliff-notes:
With interest rates going up we have the following scenario.
But if the slow pace turns into a faster walk and everyone starts to run to the exits, then we get a nice panic on our hands which often happens at times of insane valuations like we have now. In other words, all the ingredients are there for that spark to go off.
Despite the lessons of 2007, a lot of money has now leveraged up again, so it is possible just one large margin call by a big player could be the catalyst for all the layers underneath any liquidations being forced to sell as well and get away from the implosion.
What's the take-away? I don't know what to tell you, but those who gamble less with margin will have stronger 'diamond hands' and sleep better in 2022.
With interest rates going up we have the following scenario.
- Players who borrowed (which is just about everyone) must reduce equity holdings.
- Certain players will naturally rotate some of their stocks into bonds again.
- Players must anticipate the above two players, and also reduce holdings if on margin.
But if the slow pace turns into a faster walk and everyone starts to run to the exits, then we get a nice panic on our hands which often happens at times of insane valuations like we have now. In other words, all the ingredients are there for that spark to go off.
Despite the lessons of 2007, a lot of money has now leveraged up again, so it is possible just one large margin call by a big player could be the catalyst for all the layers underneath any liquidations being forced to sell as well and get away from the implosion.
What's the take-away? I don't know what to tell you, but those who gamble less with margin will have stronger 'diamond hands' and sleep better in 2022.
Most people say cut your losses but doubling down can be effective but you have to do it in very strong stocks/crypto.