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  • Volatility by Socials

    Lots of rules go out the door when we look at the 15th of January when both the US10Y and IWM went down. No correlation is ever 100% when it comes to trading, but it's interesting to see that rule that had been solid suddenly go sideways.

    Things that are creating volatility: Tariff announcements and geopolitical moves.

    What does this mean for a swing trader?

    It's really tough to hold onto anything for more than overnight. A CEO might say something like quantum is not there yet, and kill a whole slew of portfolios by 20%.

    Rules that I am following:

    1. Risk only 1% of my portfolio
    2. Hold trades overnight - not 3 or more days.
    3. If someone tweets something and there's a move down - that's not an illusion. That said, once a tweet is digested by the market, it's like it never happened.

    I'd really like to hold onto a stock, or an ETF, but when SPY can drop 3% in a day from a Fed announcement, it's better to be all cash during the weekends, and hold a bit overnight during the week.