Mid Day Trading Update – The Patient Trade
Thus far in today's trading session we're looking at quite the choppy environment. During times like these it's important to cut down your position sizes as well as your time-frames so you don't get tossed around when the inevitable turn in sentiment comes your way. Direction biased day-traders have been taking it on the chin lately, simply because of the consolidation and lack of conviction in the broad indexes. Both bears and bulls can make their case and somehow both be right.
The patient trader has the willpower to suspend trading if presented with a more difficult than usual environment. These traders can sit on their hands and avoid any kind of interaction that would put their account in any unnecessary adverse positions going into June. For most of the options traders here at Sanglucci.com, unless we're writing options there's no reason to aggressively attack this market expecting solid gains.
The story of the day has been this Fannie Mae (FNMA). This was a penny stock not too long ago and has risen all the way up to $5 before selling off today. Twitter traders are all over this, hopefully on the right side.
I'm doing nothing today and planning to continue on this path until the end of the week. The last thing I want to do is force trades in a market with no clear direction.
Stay tuned for more updates!
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