Fear and Greed

Let me share something from investopedia.com on something that defines a good trader:

"The best traders can adjust to whatever the markets throw at them. Rather than focus on what they think or expect to happen, they plan for multiple scenarios and adjust as the opportunities present themselves.

As a trader, it is important to not to lock yourself into only one possible outcome, as the markets are not always rational or logical.

Fear and greed are two of the most powerful emotions we have as humans. If you think of the markets as a huge pool of extreme emotions, than you can understand why the markets often move in ways we could deem improbably or logical.

As stock chart shows price objectively, but traders in turn must be objective in reading them. "


To me, the last 6 months, the market was irrational but I am sticking with the bullish trend. The market can remain irrational than you can remain solvent.

If you need to trade, make sure it is hedged. Buy covered calls and bull puts.