Today was a very good day for the PMs. I’m sure everyone trading noticed the VIX was over 30. Many are familiar with Bob Moriarity, but I thought I’d post the following excerpts from a recent blog for those who are not familiar with his blog posts. These are excerpts that caught my eye. On second thought, all 11 are useful, so after the 1st one, I’ll just outline the subject line:
Navigating Tumultuous Markets: 11 Lessons Learned Over Three Decades Of Trading
1 Mar 2022
- You don’t have to trade. Despite the always present temptation to trade, sometimes the best move is no move at all. Being patient and waiting for market conditions to improve can oftentimes be the most effective choice. Taking a step back can also help us to clear our mind and work on improving our trade setups, our trading psychology, and our trade criteria. You don’t have to catch every market move or buy every stock that’s making 52-week highs. In fact, you simply can’t. Being ok with ‘missing out’ is critical to an optimal trading mindset.
- Risk management is everything.
- Reduce your position sizing.
- The bigger your positions, the less room for error you have.
- Hold more cash than normal.
- Increase your focus by reducing noise.
- Commit to spending at least one hour of your trading day moving your body and getting outside.
- … respect your stops!
- You don’t need to know what’s going to happen next.
- Fundamentals don’t matter in the short term.
- Never trade on margin!
Greed kills. Margin kills. Just don’t do it.
The full blog is available here:
(Navigating Tumultuous Markets: 11 Lessons Learned Over Three Decades Of Trading, by @Goldfinger)
While gold and silver are central focus to everyone here, do pay attention to other sectors and commodities that are having excellent performance that have already been mentioned or overlooked (ev metals, oil, commodity etfs). I’m sure others have some in mind and perhaps can post favorite picks on this thread and make use of the Charts for Metals and Stocks 2022 thread.