Here’s Why I’ll Be Staying In Cash This Month
Looking back, it was nice spending my long Labor Day weekend with family. It wasn’t just the good times and family that kept me, level headed and stress free, though. The biggest reason is because I am mostly in cash right now.
As I see it, now is not the time to take any stock trades. I’m also hesitant to look at bullish options. Even when I see a follow through day I have to remind myself that not all follow through days are created equal. Instead of throwing my time into chart analysis I’ve focused my recent efforts on skill sharpening.
At a recent Meetup of investors that I host, I noticed that attendance was lower than usual. My thinking is that some traders I know have lost a ton of money in the past few weeks and are just too embarrassed to admit it publicly yet. However, I think that right now is when a trader should focus on shoring up their weaknesses. One benefit of staying in cash is that it frees you up to spend a little time on Virtual Trading and Paper Trading!
These days, every broker offers you some options for skill sharpening so set aside some time to look that over. Virtual Trading allows you to maintain your good habits (watch list building, trade planning, analysis) without putting any of your money at risk. It’s also a great tool when you want to test out some new theories or trading strategies.
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