I Know Nothing
- Posted by chicagosean
- on February 2nd, 2012
If I’ve proven one thing to myself over and over again throughout the nearly 15 years I’ve been involved in the markets, it is that I truly have no idea which way the market or any particular stock is headed beyond the next 5 minutes. And looking at my tax returns, there have been many years where this is plainly obvious.
Yet, this doesn’t necessarily mean I should fold up my tent and head back home. It just means I’ve got to recognize this about myself, never forget it, and then position myself accordingly.
This is why in 2012 I’m making a concerted effort to trade credit spreads on both sides of the market while maintaining minimal delta risk to my portfolio. While position adjustments will be mandatory as the markets move, it doesn’t require constant monitoring and my success doesn’t hinge on me picking proper directions. This is very important for me as I don’t typically have the time available during the trading day to be closely watching every tick of my positions. Nor would I want to even if I could.
I’m cautiously optimistic that 2012 will be a nicely profitable year for me, thanks in large part to the trading plan I’ve put in place. Of course, I’ve been wrong before… ;)
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Sean McLaughlin - Editorial, Curation, & Investor Relations Solutions at StockTwits. Also, former Member of the Chicago Board of Trade who trades his own account in Boulder, Colorado. More »
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