Corporate America is still in denial about the prospects for a global trade war,
even though protectionism was a central theme of the Trump campaign.
… The … relevant legislation gives the occupant of the White House remarkable leeway should he choose to go protectionist.
Looks like a trade war is here…read how to benefit from this here
In a previous post,
I wrote briefly about what investors can expect in 2017 as a result of the Trump presidency
and suggested some investment ideas.
In part 2 below, I’m going to delve into the merits of precious metals for 2017.
Options trading can appear intimidating to some traders.
To make money, you must understand how option values fluctuate, the risks of option positions and the regulations pertaining to option expiration.
You can have option positions that expire after periods ranging from one day to more than a year.
Understanding the mechanics of option expiration will save you from unpleasant surprises.
If you’ve traded actively for at least a few months or years, you’ll know all too often the agony that comes
with getting stopped out of a position and immediately, the trade takes off.
A similar but lesser form of agony is felt when a trade has hit your price target and you proudly sell your position.
Except, it keeps going and going…
Fed Turns Hawkish, by Tim Duy:
The FOMC raised the target range for the federal funds rate by 25bp today, as expected.
But the tone of the press conference and the summary of economic projections were more hawkish than I anticipated.
The Fed is shifting gears, a shift I did not expect until more data piled up in the first quarter of 2017.
Fed surprises market by turning more hawkish faster resulting in a pause in the rally.
There is nothing so disastrous as a rational investment policy in an irrational world – John Keynes
Trump’s victory surprised even the most well-informed financial analysts and bloggers.
A quick scan of the headlines leading up to the elections showed endless articles which pontificated
what a Hillary presidency would mean for markets.
And those few articles which did venture a guess at what a possible Trump aftermath
would look like seem even more ridiculous now in hindsight:
Barclays – 6% fall in the S&P 500 before a partial recovery by year-end
Citi – 5% drop in S&P 500
RBC Capital Markets – 10% to 12% fall in the S&P 500
Wolfers,an economics professor at Dartmouth College – 12% off the S&P 500
In the first part of this article, I briefly discussed a rather painful early trading experience during the financial crises in 2007/2008.
I was short and still somehow killed my account.
I let my emotions dominate my trades earlier in my career.
My self-worth was tied to each dollar made or lost.
I was many things back then.
Too eager, too risk-loving, too young.
Eventually, learned that my trading career is like a war that never ends.
Every minute of trading is a battle with others trying to separate me from my money.
If we fail to manage our emotions, we become easy targets.
After blowing up my account multiple times, I learned some very painful lessons.
As promised, I will share with you my framework to keep psychologically sane while trading and also what to do when off balance.