The Daily Dose of Trading Comments

With less than an hour to go I have pushed my portfolio around to the point where I have about as much short as I do long and about 40% in cash. I'm preparing for a pullback; freeing up cash and putting short positions in place to try and capture some points on the expected retracement. If we get the hard pull back it will be difficult to step up and buy. It will likely be one of those hold your nose and buy situations.

If your portfolio is extended, it makes it just that much harder to do any buying in such a situation. Now if you have lightended up it is a bit easier and if you are actually coining change on the way down as well, then buying here and there as they come in is that much easier. Trading is all about market psychology; both yours and the rest of the market. You have to try and put yourself in a position to trade to win. To me, that means you have to prepare for what is the most likely occurrence and position in front of it so that if it plays out that way, you can make your move and not second guess. When you are losing money it all becomes second guessing. Don't leave yourself in that position.

This is my last post for the day. I'll be wrapping it up shortly and heading out to do something fun with the family. Have a good weekend and I'll see you next week.