Notes From 'The Sellout'

So, now where? Well, I'll give you my best shot, if you remember, it's only my best shot.

And that brings up an important question. A few readers questioned my call on last week's TSC TV show of selling out Friday morning. Comments ranged from, "Admit your mistake, you moron!" to "Gee, it must have really hurt to see the market ramp right back up after you sold."

Therefore, a few comments. One, did I make a mistake? Oh, if you look at what the market did, Monday and Tuesday, I most certainly did. But, truthfully, that's not how I measure my success. Rather, I measure my success in how well I adhere to a high-reward, low-risk methodology. To me, not selling when I did would have been high risk, as I thought the odds of a further drop on Monday were quite high. It didn't work out that way, but that's what trading is all about. Sometimes the long shot comes in. And frankly, I thought if you weren't selling -- and even worse, buying -- Monday morning, you were playing the long shot. ...