The Midnight Rider | Tackle Trading
≈ Taking the roundabouts of the financial markets. ≈
We tend to choose instant gratification over long-term responsibility. We want to make money now so we don’t work over long stretches of time until, despite our cries, time is stretched for us and, at some point, we will have to embrace it: in order to build wealth, we must forego expediency.
That means we must take the winding road less traveled, meander, take the roundabouts of the financial markets, which bends our perception of time. Taking the right in order to reach the left and vice-versa. In a sense, we must love losing money in order to make it.
As once stated by Dr. Van Tharp, we don’t trade the markets themselves but only our perception of them. Therefore, the markets, and by mere logic, the strategies we use to approach them, are not a plug-and-play solution to make money (for some, still more like a plug-and-pray).
Mind comes before action. Reasoning and thinking are paramount. Action becomes pointless and baseless without them. While everyone in their hungriness takes the shortcut, we travel by midnight.
“And the road goes on forever.
And I’ve got one more silver dollar.
But I’m not gonna let them catch me no
Not gonna let them catch the midnight rider.”
Chart of the Day: VIX
FED’s U-turn sent the market volatility to 2018’s 15.0 support level. Low VIX equals no risk, right? No. Absence of evidence is not evidence of absence. It’s not because the market participants do not perceive the risk that it’s not there at all. It just reveals their complacency towards risk, implicating in more risk taking and leveraging. Time to buy protection. Safe sex or no sex at all.
Video of the day: How to use leverage to control an expensive stock
In this video, Coach Noah Davidson explains how you can use leverage to control an asset using a fraction of the money you think you would need to buy that asset.
Trading Justice Blog: Identify Priorities and Stay Focused
One challenge in all our lives is to find the time, energy and attitude to do what’s important, at the right time, and make an impact. Why? Because we’re all busy. Extremely busy. If you have kids, work responsibility, participate in community or church organizations you know what I’m talking about. And, that doesn’t include hobbies, personal development and the things that really matter.
Originally published at tackletrading.com on February 5, 2019.
