Markets are about only two things – risk and probabilities, and they work hand in hand. For entry points, higher probability means lower risk – for the entry point itself. People throw dozens of more variables into this equation – such as “penny stocks are too risky”, “you have to take a lot of risk for a big reward”, etc. This stuff has nothing to do with the risk and probability with the entry point itself. It has to do with other things. And here is the 11/1/16 post about shorting gold right before the election.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.
2 Comments
Hey Scoot.this question is referring to 1:34 on the video. A) can you talk more on your exit strategy .What to consider when deciding if one should or should not wait for the rally to exit ? B) in the scenario that waiting for a rally to exit and the rally never comes. What do you do after?(In other words if exit plan A fails what is your exit plan B?) If you can demonstrate in a video that would be cool. THanks for the educational information.
I’ll plan it out, and post a video soon. This thing about exit strategies has many facets. But we’ll focus on we’re either trying to preserve profits, or we’re trying to minimize losses. And the real issue is our psychology fear, overconfidence, stubbornness, hope, uncertainty, confusion. It’s an argument for using physical stops, but which I usually don’t use physical stops. And in that scenario where plan A doesn’t work, then usually I’m screwed. And because of my confidence, actually better said overconfidence, I certainly get myself in some “pickles” sometimes. We’ll go thru some different scenarios with some of my crappy trades already on videos.
Hey Scoot.this question is referring to 1:34 on the video.
A) can you talk more on your exit strategy .What to consider when deciding if one should or should not wait for the rally to exit ?
B) in the scenario that waiting for a rally to exit and the rally never comes. What do you do after?(In other words if exit plan A fails what is your exit plan B?)
If you can demonstrate in a video that would be cool.
THanks for the educational information.
I’ll plan it out, and post a video soon. This thing about exit strategies has many facets. But we’ll focus on we’re either trying to preserve profits, or we’re trying to minimize losses. And the real issue is our psychology fear, overconfidence, stubbornness, hope, uncertainty, confusion. It’s an argument for using physical stops, but which I usually don’t use physical stops. And in that scenario where plan A doesn’t work, then usually I’m screwed. And because of my confidence, actually better said overconfidence, I certainly get myself in some “pickles” sometimes. We’ll go thru some different scenarios with some of my crappy trades already on videos.