| It's not difficult to see how much more risky holding equities is during times of elevated Volatility. Sure there are periods where just maintaining equity positions would in hindsight work better, but long-term it's not close right?
We REALLY do need to move to safety, even if it doesn't work right away.
Zoom out to 30,000 feet
It may not always look like it, and it may not always work on a short-term time horizon, but I do actually know what I'm doing to maximize our probability of good performance.
That's the thing about trading though, you have to zoom out and look at it over longer periods of time to see any real success or failure. Day to day is just noise and of course none of us know what's going to happen tomorrow.
We could have the best possible plan and a strategy that has great historical success, and in the short-term, the market can still surprise and bring losses.
However, if we're holding the correct positions every individual day, and we're patient and willing to move to safety when necessary, then we really can dramatically outperform the market. |
