RISK ASSESSMENT WEDNESDAY: LIQUIDATION EDITION
I ended the day in 100% cash, spending the final two hours of the day liquidating portfolios. A necessary part of keeping risk under control. Moderate losses across the board.
If you are going to play in the dragons lair (meaning leveraged ETFs), you had better be damn sure you know how to control your risk. The moments of emotional weakness you have and doubt as to whether you should wait it out may not harm you in the QQQ. But when you triple the volatility with TQQQ, it will eat you alive and dissolve you in pink stomach acid.
The upside won't work if you can't control the downside...that's the bottom line with this method of trading.
Here are the Twitter updates:
