It’s no secret equities have been on a tear the past month, ever since the infamous ‘V’ pattern made it’s reappearance. This pattern brings a lot of emotions to the forefront of social media and more often than not, this is in the form of spiteful Tweets from (semi) upset traders.
This phenomenon is 100% understandable. I don’t think any true market participant would call trading ‘easy’, because it is not – for sure. However, even if it is understandable, that does not make it warranted or appropriate. Emotions are apart of being a human, without them, well to be frank, life wouldn’t be near as meaningful. However, when it comes to trading being consistent in the lack of emotions is more important than letting them take first place of importance in your mind.
In terms of the markets, people have have missed this rally and I will be the first to admit it. “I have missed this month’s rally“, there I said it. However, this is not a reflection of a my strategy, trading capabilities or anything of that sort. However, it is a reflection of what my process sees as actionable and high probability.
Just because I (or you) missed a move, it does not mean that you are is a failure or that your strategy is flawed. It is vitally important to examine your results in a vacuum, not relative to the indices. Why? Because the indices have a different strategy than you – they are invested 100% equity, 100% of the time. It is only applicable to compare your strategy to the indices if you are also employing this strategy.
If you are producing consistent returns with low risk while following a detailed process, is there anything else you need? No.
So, simmer down, remove the indices from your view and focus on creating, improving and implementing what makes you – you.
PS: for what it’s worth – I do not have any quality long set-ups coming up on my screens at this moment, the only two stocks I have on my watch list are for short trades: $SLRC & $MBLY.