Tweet *****It's almost the end of May and the markets are getting nervous. So why the question if the May/Away in the markets keeps holding true. The question becomes more burning if you are still expecting profits and see the drop-off potential of the market. Certainly it looks threatening if we look at it myopically but if if we look at farther out patterns it is merely a blip on this mountain trek.
Embarking on any climb it's good to know where and how high we are able and willing to go before turning back and generally speaking, the higher the climb the more people we need to support us. The danger comes if we are not prepared to stay longer and we insist on doing it anyway, because the higher we go the more likely a storm and colder temperatures. Also, if we attempt a Himalayan hike we better carry oxygen and enough supplies. It is where we need the most preparation and be able to keep good judgement about the possibility of inclement weather and certain death.
Traders who jump in at these lofty altitudes are the ones most likely to jump out too early and most likely to regret it. Also those who can't make up their minds may meander around looking for a better path while the weather is closing in on them. It behooves a trader to keep wits about them and therefore more crucial to have target and stops set just in case they lose their direction. Quick action can be a life saver if you know where it will lead and it is why in trading we need to know our escape path.
For a climber daily/hourly assessment of weather conditions is also crucial for our survival and likewise for a trader who wants to collect profits before a major turn of events.
So knowing some history, current events and basic facts becomes our survivor's almanac where past notes of trades and behaviors will help asses the possible future, be it short or longer term. Watching what others do may be a good indicator, but asking them what to do could lead to disaster. Knowing your own limitations on this climb is the better strategy and turning back early may be a survivor's tool rather than dishonor. The key here is not to be complacent but be involved with your own finances.
Happy Trading, Living and Dancing
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