Tackle Today: What Bruce Lee taught me about trading | Tackle Trading

≈ Be water, my friend. ≈

Empty your mind. Be formless, shapeless, like water. Now you put water into a cup, it becomes the cup. You put water into a bottle it becomes the bottle. You put it in a teapot, it becomes the teapot. Now water can flow or it can crash. Be water, my friend.
— Bruce Lee interview on the Pierre Berton Show (1971)

When it comes to trading, coherence can be a sin. The quality of being logical and consistent at all times, independently of the scenario that is developing in front of your eyes could be a deadly mistake.

You’re in love with a company and want to stuff your portfolio with some of its shares. Coca-Cola, Apple, Boeing, Berkshire, whatever corporation. You love it, you buy it. Right?

On the other hand, you hate a bunch of companies and would never hold them in your portfolio. Azul, General Electric, Facebook and so on. In fact, you would be glad to short the hell out of them. Right?

That’s when coherence becomes the 8th deadly sin. The companies you love are on a year-long bearish trend. The ones you hate are running up like hell.

Shorting a stock that’s on a bullish uptrend is a sin.
Buying a stock that’s on a bearish downtrend is a sin.

Trade what you see. Be water, my friend.

Chart of the Day: Hold your nose and buy

Say you hate Facebook. You love the fact that this company is at the centre of a privacy scandal. “Geez, I want to short the hell out of Mr. Zucka.”

Yes, it’s perfectly reasonable except that Facebook is on a bull run since January this year. Now what?

Coach Keith King has his own version of “Be water, my friend.”: Hold your nose and buy.

Video of the Day: How to Calculate the Perfect Call to Put Ratio

In this video, Coaches Tim Justice and Noah Davidson discuss how to calculate the perfect Call to Put Ratio.

Trading Justice Episode 319: Anatomy of the Bullish Retracement

In this episode we deep dive on the Bullish Retracement pattern and how to identify and qualify it. Primary qualifications include trend, liquidity, candle retracement guidelines, how to read a technical catalyst, identify signal candles and recognize confirmation candles. Listen to the episode on the player below.

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Originally published at https://tackletrading.com on May 1, 2019.