Market analysts are telling us that the sky is falling. People are worried and panicking. Money is evaporating. But is it? Or is it being transferred? One of my favorite stocks to follow took a serious nose dive on February 12th to the 13th on during post and pre-market trading. So much so that I had to take a double take and ask myself if I were looking at the right stock. And I was. It was TTD. It fell from $122.23 to $81.92 in that time span. A 33% drop over night. That’s crazy! But what I was thinking is that, I wish I had known that was going to happen. I could have mad a shit load of money!
But as a day trader I was also glad that I do not hold my trades over night. I do not allow myself to be subject to the whims of the market during after hour trading. Which was also a blessing.
As a day trader I wish those types of moves would happen during regular trading hours so that I might be able to ride that train. As traders who long and short our trades we welcome movement. We welcome volatility no matter if it’s long or short. But we also realize more fortunes are made more quickly and greatly when the bottom falls out. The stock market takes the stairs up and the elevator down.
So the question of is the market tanking a good thing or a bad thing is a matter of perception. It depends which side of the bath room door you are on when you want to take a piss. My philosophy is, “Let go of your bias.and flow with the market.” That being said, in my opinion, the market tanking is a good thing as long as I am riding a short position.
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