Third August “NON” Trade

The following information is for educational and entertainment purposes only. Rio Verde Trading and the author make no claim that anyone can or will achieve similar results in their trading.

20 August: A trade set up was triggered today in SPY, however personal business kept me away from the computer so no action taken.

21 August: The extreme market action and I just could not pull the trigger, no action taken.

24 August: Continued extreme market action and I decided to sit this one out and wait for the dust to settle before continuing trading.

25 August: It’s Time To Do Absolutely Nothing; this article by Tim Price at Sovereign Man pretty well sums up my attitude towards the chaos in the markets, read here.

26 August: Today the market action signaled a sell to the trade of August 20, which I had not taken. The result of that trade would have been a small profit or break even. I will have to admit that the markets pretty much had me spooked. I do not regret missing this trade except for the fact that I was breaking with the  discipline of the system.

The extreme risk in the markets world wide is historically unprecedented as central banks and governments continue to embrace false Keynesian economic theory. I continue to hold  gold & silver and gold & silver mining stocks, cash, and a short position in the S&P 500.

This past week of market action generated trades in most of the ETFs that I follow. Very little damage was done as all of them either showed a small loss or small gain, reinforcing my faith in this trading system. From back testing and actual trading, bear markets have generated the best returns with this trading system; if I can just keep from losing my nerve, that is the hard part. Stock trading is 90% psychological.