Bruce asked 7 years ago
Hi Pat,
The market is full of volatility this week. It fell around 1,000 points twice and rise huge the next day. If we buy some in Tue, then will got hurt by the big falling on Thu. Thanks for the rules, selling some into strength helps us to prevent such loss. My question is: if it near the bottom and gap up fast ( like Fri). We have only small position due to high volatility. Then what's the better way to build position? Seems most of the names' pattern are loose, no good long base...
1 Answers
Pat Walker Staff answered 7 years ago
Good afternoon Bruce!
Great observations and great question! You have very important word in your question. The word: "Position." We factor market action into
thoughts/tactics in building a position. Currently, market action is not conducive to position building. Way to many whipsaws.
We need volatility to drop dramatically. At the same time we will start to see "clean & simple" bases starting to form. These will be the stalks we stalk to buy, and then buy some more of them! The MARKET is just whipping these stocks around too much at the time. Lack of turbulence will be our "friend." And, we will be ready!
Sincerely,
Pat
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