Wednesday, June 4, 2008

Three Positions A Trader Must Take

A trader needs to know:
1. when to be long,
2. when to be short
3. and when to sit on his hands.

This week's trading clearly tells me to not waste too much energy chasing something that isn't there. The market is searching for direction right now. There is no momentum, no traction. It is not sure where it wants to go. There are too many mixed messages out there and hence the rallies are weak and the selloffs are unconvincing.

Cash is KING!

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