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3021 to 2822 (a 6% range) is hardly "head-spinning".
Wild swings...do me a favor.
2008 was genuinely "head-spinning", I'm sure all will agree. There is absolutely no comparison to today.
Honestly, I am becoming increasingly fed up of all the hyperbole that is making the rounds just to sell copy. We have barely begun the biggest bull market in history yet the snowflakes are terribly offended over minor price adjustments in the market. By all means, sell if you want to and head for the mountains. The big boys on Wall Street will be only too happy to part you from your money. And so will I, because I am more bullish today than ten years ago.
How to Deal With Head-Spinning Market Swings ... In short words ... Play the Swing
Big money has the ability to create volatility in the markets though their program trading systems. With this, the markets get pushed around more than they perhaps use to. And, this leaves the little investor wondering, at times, how to govern. Generally, when in doubt, they sell. For every sell that takes place there has to be a buy. And, again generally, this is big money that is doing the buying when the little guy is selling. When the big investor is selling generally the little investor is buying towards the top. Through the years I've seen this process repeat itself many times.
For me, a small retail investor, I now generally do some buying during the dips and sell the rips. Some call this playing the swing. I call this activity a special investment position or a spiff. I've been doing spiff activity for the past twenty years, or so, with good success. Please note that my spiff positions are a part of my overall investment plan and are not designed to be my complete investment plan.
Old_Skeet's market barometer helps me govern my spiff activity which I have been posting on the MFO board for the past couple of years, or so. Here is a link to my most recent post.
Trailing comment: The graph in the link below reflects the S&P 500 Index's range of movement over the past rolling year. Notice, the trend for the most part has been down to flat with a recent gain resulting of about a 3% to 4% overall return for the time period. By playing the swing, at times, I was able to increase my returns over just being invested in a long only strategy.
Ignore the swings if you're a longterm investor. Volatility is a natural part of the markets and is not necessarily something to be feared. Going nuts at every wiggle, even a short-term violent one, is a recipe for disaster. If anything, embrace the volatility to accumulate shares that go 'on sale' or get so overpriced you can lock in more profits and reposition things if you like.
Folks freaking out about every market spike/drop are probably the same folks who expect to get a participation ribbon just for being in the market and expect the very fact of that participation to result in immediate gains. IMO the past 12 years artificially-induced and sustained 'bull' market conditioned folks that there is only one direction that markets can ever go, which is disturbing.
Speaking of Seykota, don't forget his 'Whipsaw Song' -- which I still play now and then.
Yeah but percentages aren't as eye-dropping and fear-inducing as 'OMG DOWN DOWN 600 POINTS THIS MORNING!' ... which leads to 'STAY TUNED: HOW TO INVEST DURING VOLATILITY' segments .... after all, finp0rn media's first loyalty is to their advertisers and bottom lines, informing the public effectively is a distant third consideration.
Comments
Wild swings...do me a favor.
2008 was genuinely "head-spinning", I'm sure all will agree. There is absolutely no comparison to today.
Honestly, I am becoming increasingly fed up of all the hyperbole that is making the rounds just to sell copy. We have barely begun the biggest bull market in history yet the snowflakes are terribly offended over minor price adjustments in the market. By all means, sell if you want to and head for the mountains. The big boys on Wall Street will be only too happy to part you from your money. And so will I, because I am more bullish today than ten years ago.
How to Deal With Head-Spinning Market Swings ... In short words ... Play the Swing
Big money has the ability to create volatility in the markets though their program trading systems. With this, the markets get pushed around more than they perhaps use to. And, this leaves the little investor wondering, at times, how to govern. Generally, when in doubt, they sell. For every sell that takes place there has to be a buy. And, again generally, this is big money that is doing the buying when the little guy is selling. When the big investor is selling generally the little investor is buying towards the top. Through the years I've seen this process repeat itself many times.
For me, a small retail investor, I now generally do some buying during the dips and sell the rips. Some call this playing the swing. I call this activity a special investment position or a spiff. I've been doing spiff activity for the past twenty years, or so, with good success. Please note that my spiff positions are a part of my overall investment plan and are not designed to be my complete investment plan.
Old_Skeet's market barometer helps me govern my spiff activity which I have been posting on the MFO board for the past couple of years, or so. Here is a link to my most recent post.
https://mutualfundobserver.com/discuss/discussion/52513/old-skeet-s-market-barometer-report-august-september-october-update
For those that would like to get on board with some proven trading strategies (The Essentials) the link below might just be of good interest.
http://www.seykota.com/tt/
You might also enjoy listening to the Tribe's theme song. Just click on the link below.
http://www.seykota.com/tribe/essentials/index.htm
I'm a card carrying member.
And, so it goes.
Old_Skeet
Trailing comment: The graph in the link below reflects the S&P 500 Index's range of movement over the past rolling year. Notice, the trend for the most part has been down to flat with a recent gain resulting of about a 3% to 4% overall return for the time period. By playing the swing, at times, I was able to increase my returns over just being invested in a long only strategy.
https://finviz.com/futures_charts.ashx?p=d1&t=ES
If you would like to view the volatility spikes the below link graphs the VIX for the past rolling year.
https://finviz.com/futures_charts.ashx?t=VX&p=d1
Folks freaking out about every market spike/drop are probably the same folks who expect to get a participation ribbon just for being in the market and expect the very fact of that participation to result in immediate gains. IMO the past 12 years artificially-induced and sustained 'bull' market conditioned folks that there is only one direction that markets can ever go, which is disturbing.
Speaking of Seykota, don't forget his 'Whipsaw Song' -- which I still play now and then.
Yeah but percentages aren't as eye-dropping and fear-inducing as 'OMG DOWN DOWN 600 POINTS THIS MORNING!' ... which leads to 'STAY TUNED: HOW TO INVEST DURING VOLATILITY' segments .... after all, finp0rn media's first loyalty is to their advertisers and bottom lines, informing the public effectively is a distant third consideration.