Heineken-Ashi said:
I'm probably going to get **** on for this, but it needs to be said. Days like today, following a couple months of space-bound trash, with really no meaningful retracements for months, and following a bad day that still didn't retrace the previous months much at all (zoom out on a chart and tell me how bad Friday was.. hint.. barely a blip).. the sentiment of this market is one of blowoff. I'm not sure if we're in the final blowoff or still building up to it after another retracement. But the last couple months are not normal. Not historically for healthy markets. I say all this to remind, yet again, even though there is likely higher to be had in many names.. to please protect your money. It's numbers on a screen. These valuations aren't real. The prices are a midpoint between bid and ask. Friday in crypto showed us what happens when the bid gets overwhelmed and there isnt enough of it. Whatever liquidity is providing a floor.. once its toppled.. it can be a quick ride down. And all those numbers on the screen can all of the sudden be much smaller. Do what you do. Ride the wave of awesomeness we're in. Have fun and make a killing. But please know it can end quick and reverse quicker. Im not saying sell everything. Im saying know your plan. And I'll keep saying it, because what always follows these regimes is not pretty.
Hear, hear!
Definitely time to use some risk management techniques, or learn some quickly. Seriously, there are several on this board who have VERY good trading methods and discipline. I don't always agree with their stock picking methods, but you can't get a lot better than learning trading techniques from H-A, OA1, 30K, FJ, and several others here.
No one is saying you should convert everything to cash, but PLEASE cash in partial gains, set stops, add protective puts, or write covered calls on highly appreciated runners that may be running out of gas.
