A message to anyone who holds overnight positions
Why? Why put yourself through the stress? Here’s a chart from today’s S&P 500 e-mini. At the time of the picture (10/06/08 2:50PM) the market was down over 8.5% in a single day. While many “investors” are screaming bloody murder, I am petting my dog and reviewing my profitable trades from this morning.
I talk to people almost every week who have some kind of horror story about this market. It seems like they keep telling themselves stories about how the bailout will turn the market, or how we’re close to a bottom. Stop guessing! Why on earth would you try and catch this falling knife? I’ve said this time and time again- If you have losing positions, close them! Not tomorrow. Not next week. NOW!
This is a classic example of how day trading, with the right strategy, is more conservative than “investing”.
