When you are out of the market and sitting on cash, money market and some bond funds, and the market puts in nice strong days back to back, you feel left behind. There is a temptation to jump in. But I have to resist that kind of temptation.
I was looking at CREE and in my TC2007 software; the indicators are looking primed for an up move. Double bottom. Nice pull back. But my basic system on Metastock still says down. The market overall is still saying down. Is it wise to jump in? Sure if I want to gamble with some lower odds. But I don’t want to do that. I will be patient and wait for at least CREE to signal up, and then wait patiently for the pullback to stick my toes in the water. Why not have the odds in my favor? After all that is what smart trading is all about. Stacking the odds in your favor, looking at which way the tide is flowing and swimming with the tide. There are tides and then there are waves. Best to catch the wave in the direction of the tide.
No comments:
Post a Comment