Profiting In A Crazy Market

3/3/20

I was just wondering how things were going with you.  How has your trading been?  The market has really been crazy and it has been the general consensus that it was not a good place for long term investors to be.  So, there was a lot of selling going on and then Monday a record setting day with a lot of buying going on.  What was the panic?

No matter what you call it there was something that moved the market both ways.  You will hear the prognosticators explain exactly what caused the markets to move.  Likely, they are right and yet wrong.  There is only one thing that moves the market and that is people and how they respond to any given situation.  When is the last time you have seen a 40 Vix?  Truly this market was not being driven by people with well thought out trades.

I have three accounts.  One account is too cumbersome for me to handle and that is a managed account following my directions.  That account was down considerably but not as much as one might think and before the smoke clears it will be beyond the highs it left behind.

I personally trade my other two accounts.  I made money with my personal account on every day, both the up days and the down days.  Why do you think that is, when the big guys are playing catch up?  It simple actually and anyone can do it.

If you want to make money, you have to use what you have.  That is the key.  If you are going to sell a position because you fear it is going to go against you, why did you not short the position at the same time?  You had the most momentum you are likely to ever see again.  Why did you sell and hunker down waiting for it to pass. Was it because you were not convinced you were doing the right thing?  Maybe you were not.

Today is a down day, I am told.  But yet I made more money than my managed account.  My managed account is three times larger than the one I personally trade.  There are days I cannot compete with a rising tide, as their boat is bigger than mine.  But often I make money when they lose money because I am small enough to be flexible.  When I get too much money in my personal trading account I send it to my managed account.  That way I always stay highly flexible.  Couldn’t I just make larger trades and handle it all you ask? 

Nope, I cannot do that.  I know that I am not psychologically prepared to see that much money in single trade and do not have the automated resources to apply to a large number of securities at the same time as my managed account can.  I know my limitations and respect them.  Why fix something that is not broken?

These hectic markets have been a blessing as my Stress Free System is putting me in and taking me out with no effort on my part.  I am not sure that I know how to convince you to start making money and stop making it all so difficult. 

Let me know how I can help you.

Happy Trading,

Gary Odom

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