Cow Moo-ney commented on a stock · Feb 2, 2023 08:53

Takeaways - Food for Thoughts

Today’s rally, or even the whole of Jan’s rally have offered some takeaways for us

1. Don’t be too biased towards bear or bull. Trade what is on the chart, and not what you predict how the market will move.

Many traders and investors were bearish entering 2023 as a potential global recession was looming. But since we started the year, indices have been rallying. Take a look at SPY - we broke free from the long term downtrend line, came back to retest, and held. Anything that is above the trendline is still bullish despite small pullbacks here and there.

2. Take profits off the table or set stop loss

Bears had chances to take profits off the table or cut loss as there were pullbacks here and there. Don’t dwell over what was left on the profit table; focus more on what you have taken off the table and are currently sitting on your pocket.

As much as I remain cautious with this rally, it is evident that charts are leaning towards bullish, at the moment.

Long term wise, I am a bull of the stock market. Long term as in 10-20 years. I stepped in to pick up stocks when Google was 88, Apple was 120s, Tesla was 110s, and Microsoft was 220s.

Short term wise, I am neutral as I try to strike a balanced view. I sell Puts (bullish move) and I sell Calls (bearish move).

This is also the reason why I usually cover both bear and bull thesis in my YouTube videos, which may not earn me lots of followers as I heard that usually someone who is able to take a stand (bear OR bull) will garner more interest.

Well, I don’t want to be a cult for the sake of being one. And hopefully, my approach of painting 2 scenarios still benefit people out there (not financial advice of course).

Btw, check out my channel and videos if you haven’t! Like and subscribe alright haha. Hoping to grow the Youtube channel.