Trade What You See (Not What You Think)

In order to go from an amateur trader to an exceptional trader, you need to learn one basic skill. And that is trading what you see and not what you think. There was no better example than what happened on Friday. This week I talk about trading what you see!

The Week
I was surprised by the reaction to Jerome Powell’s speech on Friday. He said exactly what I
thought and had shared on Thursday’s webinar. The stock market rally suffered significant
losses for a second straight week, with Federal Reserve chief Jerome Powell saying Friday that
more "pain" is needed to bring down inflation. He also commented on the jobs Market which is
strong. The problem is we are not seeing a lot of people grabbing those jobs.
The Market had a second week of loss with Friday being over a 3% move down. This is not
typical Market action for this time of year. I had expected what we saw to happen in Mid-
September. All I can say is the world and the Market are a little off kilter these days.
As you have heard me say time and time again - Trade What You See Not What You Think.

How did I do?
It was an OK week. Two weeks ago, I was in a lot of positions. Friday a week ago I saw the
Market starting to shift. We covered how I spotted the changes on Thursday’s webinar. My
hope is that you study how I see changes and start to adopt the same or similar strategies to
anticipate Market shifts.

On Friday I exited any of the Long PUT positions I had left. The Market went down hard and
those PUTS were all quite profitable. I have no trades on at the moment. I am going to wait
through the early trading on Monday before planning my next move. The reaction to Powell’s
speech was so strong down that I am unsure what the Market will do next so I am willing to just
sit on my hands rather than stick my neck out. Don’t want to give away any of the profits I have
fought so hard to get.