I don’t play chess with any level of skill.
Yes, I know how the pieces move. A few basic opens. That’s about it. So that being said, I once took some time and had a 1900 rated friend ‘showing me the ropes’ of the game. He’d walk me through various games. Various ‘opens’. Different ‘end-games’. Well, in the middle of one of these sessions, I had moved my bishop out into the middle of the board, and was quickly trapped.
I sat there for about 5 minutes trying to figure out how to extricate myself.
When he finally leaned forward and said …
You know Dan, he can move back where he came from too
Quite simple. Just have return the bishop to his original starting point, and the entire ‘trap’ was non-existent. It struck me how simple the solution was. I just couldn’t see it.
The markets are not very different.
As I said previously, I think we have a complete meat-grinder on our hands. Yesterday, my edge favored the downside. We then rally a bagillion points, and now, my edge is totally and completely mixed. I have no edge in this market. However, as I said some time ago … we’ve gone completely defensive in this meat-grinder. Especially since this market has completely chopped me up earlier in the year, and had me hit my draw-down kill-switch (which, by the way, is very, very low compared to other professionals)
I know when it’s time to pull the pieces back.
I’ve simply put on a strategy that will make money in any situation. The market goes up? I make money. The market goes down? I make money. It will allow me both to recoup some of the losses I had earlier in the year, and at the same time, wait out this meat-grinder
I’m playing defense.