This Is The Only Way To Survive In Today’s Markets
Editor’s Note:
Please join me in welcoming Steven Primo to TradingMarkets. Steve is a 20-year
veteran of Wall Street. He currently heads a private investment partnership,
where he is General Partner and head trader. Previously, Steve was a 9-year
Specialist for Donaldson, Lufkin and Jenrette (DLJ), one of the premier firms on
Wall Street. Â I’m sure
you’ll enjoy reading his daily commentary.
Brice
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Imagine you’re canoeing down a peaceful river on a beautiful summer’s day.
The sun is out, the scenery is beautiful, and you’re just going with the flow.
Life couldn’t be more perfect. Suddenly you begin to pick up speed, and as you
quickly turn a bend you see it — only 30 yards away begins a stretch of rushing
rapids that go on for miles! Along the banks of the turbulent river, as far as
the eye can see, lie the shattered remains of row boats, rafts and canoes who’s
navigators didn’t believe the river was as dangerous as it appeared.
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What do you do? Have you
encountered rapids in the past? Should you bite your lip and hope to survive or
perhaps would it be wiser just to bail out and abandon ship? You better hurry up
and decide, because you have about 10 seconds before reality hits you square in
the face.
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Trading is exactly like this.
There is absolutely no difference between the two except that instead of a
raging river, the rapids are now consumer and earnings reports. They’re
terrorist attacks, limit moves and global concerns. They’re war threats and
election surprises. Unexpected events are a way of life in the market place,
whether you’re watching a 5-minute chart or a weekly chart, and they almost
always appear without warning. Your only means of survival for such occurrence
is to HAVE A PLAN!
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The
14-week swing-trading course I will be teaching gives you a clear and
concise plan that has been verified by years of research. I will be teaching you
a new way of trading that is defined by easy-to-follow rules. In my next column,
I will explain the number one advantage to trading with a plan. Good luck and
good trading.
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Steven Primo
stevep@tradingmarkets.com