SPX - Quick Update (08/14/2024)

SPX did have an uptrending day yesterday and we're now positioned. Managing risk is an important part of the game and I don't recommend taking risky trades. If you are in this for the long haul (and you should be!), then you need to be able to understand what managing risk is. Let me take a moment to explain something.

I was a heavy buyer back on August 5th on the massive dive. Now all of those assets are up significantly. NVDA is up 20% from where I bought it. CRWD was a beaten down stock that I picked up and it's almost up almost 20% as well. My short positions, in a bull market, are to hedge against my long positions.

Only risk what you're willing to lose and when you enter a trade, understand that the money you're putting at risk may go away. If your trade is invalidated, cut the loss and move on, but don't keep trying over and over again, otherwise you'll be trying to short the market like many did in Q2-Q4 2020.

Two daily closes above the 61.8 invalidates this trade and I'll retreat on my hedge, while still keeping the gains from all my equity positions.

Take it one day at a time with a methodical approach and don't rush it. You'll be glad you waited for the right trade.

Have a great day everyone!