Since the beginning of 2018, markets have transitioned from one of, relative ease to make money on the long side, to a volatile environment, with a downside bias. Moves in both directions are difficult to sustain for more than a few days. This environment has left many participants chasing moves up and down, only to be frustrated with being stopped out or stubbornly adding to losing positions.

I consistently say “risk management is job #1!” and that will always be my guiding principle. I have seen too many people get locked into a belief about what a market “should do” rather than simply listen to the message of the market. These people, unfortunately, come and go, they do not have the ability to put their egos aside and learn to go with the flow of the market.

Right now, the “flow of the market” is difficult to decipher and that means we need to go slow. I understand, and am with you, in wanting to make big money every day, but the market is telling us shouting at us (with big volatility) that we need to goooo slooooooooooowwwwwww! Let’s do ourselves a favor and LISTEN to the market. Price is truth and the truth is, this is a difficult time in the market.

As mentioned in the video if EFX triggers, it is just a half size suggested.