Thursday, August 4, 2011

Be Very Careful if You are Novice

If you are a new investor or trader, you may be learning your first lesson of how markets work. This sell-off is fast, vicious, and devastating to many new traders, and quite frankly seasoned ones as well. Big guys are not immune to this sell-off either. Big guys make big mistakes. Be very careful! Stay focused and pay attention to your size, stops, entries, and exits. I am not trying to teach you how to trade, I am trying to warn those who are staying in front of the freight train with no plan how to get off the tracks when it approaches. No need to be a hero, no need to catch a falling knife, no need to blow your account in one trade! Use caution and be patient, after the market bottoms, you will have all the time in the world to get back in. Leave this bottom fishing to only the most professional and experienced traders, with large and seasoned accounts, who can withstand the level of volatility we are experiencing. Be safe...

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