"The greatest mistake we make is living in constant fear that we will make one." - John Maxwell
NEW YORK (TheStreet) -- A pretty quiet Wednesday as we're seeing stocks and markets roll over a bit to blow off Monday's very overbought conditions. (My apologies for missing Tuesday.)
It has been nice to be able to hold stocks for at least a few days. I recall when this round of real-time trading kicked off, several people were not thrilled about taking a trade only to be stopped out not long after.
That's the way the cookie crumbles. The stocks weren't ready and I wasn't willing to take a loss, or not a large loss anyhow. If you are quickly stopped out or a position goes against you, it is simply that markets are bad and cash is the only real option. If a breakout works, it tells you things are good.
It isn't rocket science but a lot of people have a problem wrapping their heads around it. There is a time to be in the markets and a time to be out.
I want to thank the many who've written to me who've kept all their cash during the correction and are now adding to gains from the last strong cycle, rather than trying to just get back the gains lost in trying to trade the correction/chop.
I know I harp on about it often but being able to do nothing sometimes is one of the most important skills to learn.
Second could be the ability to identify those times to do nothing -- but I try to help in that regard as much as I can.