- The longer the market rallies without a meaningful retreat, the greater my conviction that it might be a correction.
- I have been chronicling my hedging activities. So far it has been more trouble that what it's worth.
- Cash management is a discipline that I recommend going into the fall. Cash is the easiest hedge for the trader.
- Cash management is not a complicated method, it is just finding ways to make it easier emotionally to actually grow cash even when the market is rallying. Always eliminate emotion from trading.
- No one gives you a rule book on trading, there are no instructions. The most logical rule is, don't lose your earnings. Withdrawing cash from risk is the most logical way to do it.
For further details see:
Time To Get Tactical, Let's Drill Down On Cash Management And Introduce Some New Trades