I don’t know about you, but I have been through the trading training circuit more than once. I’ve spent so much time on webinars and far too much money on education and trading rooms and indicators. It’s a rite of passage, I believe, for anyone who wants to excel at this most challenging endeavor.
The bottom line, I’ve concluded, is that no one knows what’s coming. It doesn’t matter what magic indicators they have, whether they study Fibonacci, Gann, Elliott, order flow, etc. Everything is going to be right sometimes and wrong sometimes.
If you would only accept that now, I could save you years of questing and thousands of purchases.
Sadly, you likely won’t listen. Sadly, I wouldn’t have. It’s part of the deal. Most people have to walk this path themselves to arrive at the same conclusion.
But, in the hope that you will listen, I am telling you, there is no secret to trading. There is no silver bullet, no holy grail, no magic answer. There is nothing but uncertainty to the right of the most recent bar. Events, emotions, and randomness will have the market do what it does. And no one knows what that will be. No one.
What this means is that some of your trades will win, and others will lose. This is a game of probabilities. So you’d better be okay with continuing to trade through the losers, or you will miss the winners. It’s not easy.
This morning, it looked like the end of the world. Here we are, four hours later, and the Nasdaq is green, and the S&P and Dow have recovered most of their losses. No one knew that was coming. And many folks, undoubtedly, took big losses, only to find their position has now recovered without them. Instead, they locked in a loss and missed out on the gain.
What I can tell you is that the name of the game is and has always been to buy low and sell high. That is really all that matters.
And the SAG Method is a formalized approach to doing exactly that. I bought some XLF today at 22.99. The low of the morning was 22.975. Am I a genius? Did I know that was the bottom? No and no. I simply had a plan that causes me to buy low and sell high, no matter how I feel or what I believe.
Without a plan, it’s extremely intimidating to buy as prices plummet. It can be quite lucrative, but it’s still scary. But it’s not something you can do on a whim. You must have a plan that makes that happen, or you are facing risk of ruin. You have to have a proven plan that you can trust.
The SAG Method is genuinely easy, even on a morning like today, when most peoples’ stomachs are in knots. You can do the right thing every time. Every dip is an opportunity. Every rally is an opportunity.