Are you a bear? I am, generally speaking. Did you lose money today? I did. And you know what? I'm OK with that.
Now, this isn't a Stuart Smalley session. I'm serious. And I'm proud of myself for not being bothered, because that's the kind of mindset an active trader wants.
The amateurish thing to do would be to be upset. I could tell myself that I'm Mr. Bear, and with the market completely collapsing all around us, I should be raking it in. But I'm not. For one thing, I've made so much since this bear market began that I don't mind a down day now and then.
But the main reason is that the only reason I want to really get upset with myself is if I failed in my own analysis or execution, and I did not. I am buying stocks right now – – and somewhat aggressively, I might add – – because I like their charts, and they have clean, nearby stop-loss levels.
This is not to say I've gone "all long".I have, spread out among my accounts, 176 positions. 64 are long, 72 are short, and 40 are options (all of them puts). So on a position-count basis, I am more bear than bull. But on a cash basis, I'm more bull than bear, particularly since some of my long positions are well into the six figures.
What happens tomorrow if a horrible jobs report comes out and the market loses, I dunno, 600 points? Well, that would be bad for me. I would get stopped out of many positions at nasty losses. But I've got many other positions to balance things out. On the other hand, what if the interpretation of the report is such that the market goes up 300 points? Well, I'd probably have a really good day.
My point is that every single one of these 176 charts stands on their own. I believe in my position in them – long or short – on a case-by-case basis.
I have entirely missed out on some of the core moves lately, such as the run-ups in SDP, SDS, SKF, SRS, and FAZ. I heartily congratulate those of you who have continued to profit from these hyperbolic moves! My goal is to be rational and prudent each day, and as more long opportunities appear, I want to be better and better positioned for the turnaround which, let's face it, will happen some day, sooner or later.
