Exposing Ideas to the Envelope of Serendipity

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Wednesday, June 15, 2011

It's a Process

Up one day, down the next -- recent market volatility and skittishness has tried the patience of many a trader. These choppy stages, which tend to be preparation for the start of a new trend, can quickly shred trading accounts for those prone to over-trading. For swing traders, it's almost always best to wait for the charts to stabilize and for strong patterns to emerge before committing to new positions; but the temptation to jump in early, fueled by fear of missing the turning point, can be seductive -- and ultimately destructive. Scalping opportunities have been quite abundant for the nimble, and the market does appear to be working on putting in a tradeable bottom of some degree. But for those wanting to get positioned long for a new leg up, it's prudent to let the market prove itself with convincing signs of confirmation and follow-through. In other words: wait for it.

Trade well.

-- Brinkley
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