Why do you think the market dropped 16% this week?
Your first thought is the virus, right?
Well let me ask you another question, why?
This question is much harder and your probably scratching your head or ending your statement sounding like Ron Burgundy in Anchorman, it’s ok, because every other person walking the street also has absolutely zero clue as to why
The market will rise and fall how it wants, and when it does, people try there hardest to justify “why”
Could it be because of these hyped up flu? Sure, could it be that the market has rallied almost 50% in 16 months with no corrections and no real levels of support after breaking all time highs? Could be
The why doesn’t matter, all that matters is the market fell, and even that, really who cares?
If you are not retiring tomorrow then this little drop means nothing in the scheme of things and if your nearing retiring and reading this and still trying to learn how to trade, you’ve been doing something wrong for 50 years
Right now the inexperienced trader and investor are doing exactly the opposite of what they boast that they would do when the markets at highs
Remember your friend who said “I’m waiting for a pullback bro!” “I’m waiting for a bear market to get in!” Well here it is, yet all those macho traders at highs are being given the opportunity to get in and what are most doing?
The complete opposite, they are puking into the lows of the move and now will be waiting for it to be “safe” again when we’re back at highs
The sooner you can forget about “why” the market is doing what it’s doing, and simply focusing on how you trade, trading becomes much easier