To Trade or Not To Trade?

Volatility in the markets often causes most investors to question whether to trade or not to trade.

Ironically (or NOT) most investors freeze from fear of losing – and take no action – and later wonder why they “never make any money in the markets.”

The truth is – and has always been – that the big money is made when there’s “blood in the streets.”

And if you haven’t seen any blood lately then you aren’t paying attention.

Cue up:  Amazon’s recent 20-1 split.

To Trade or NOT?

Proof of the question of whether to trade or not to trade is in your face by looking at Amazon (AMZN) stock.

After adjusting for their recent 20-1 split AMZN traded on Monday between 124-129.  (Pre-split price would be $2,480-2,580).

However, most people got spooked when AMZN fell from $3,773 (pre-split price) to $2,140 * and decided to bury their head in the sand.

(* Note: The adjusted split price today ranges from $185-107.)

But here’s the point.

Most people were buying AMZN last November – in the $3,700 range – with confidence arrogance.

But when it fell OVER 42% ($2,140 on May 16^th) they wouldn’t touch it with a 10 ft. pole.

Why?

Because of fear and lack of humility.

Huh?

Stay with me, here.

Lack of humility towards the markets is one of your worst enemies.

Learning How to Trade or Not

One of the best modern-day traders is Paul Tudor Jones.

And it’s because he’s maintained a deep sense of humility in approaching markets.

In turn, this has allowed him to remain mentally flexible and robust…in addition to being very rich and successful.

You would be wise to remember his quote:

“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.”

So now the $64 Billion question is: “Should you buy AMZN now?”

The final decision to trade or not to trade this market is ultimately yours.

But suffice it to say that big name tech stocks (Like AMZN, ETSY, NET, etc., that fell over 40% from their highs six months ago) will likely be overlooked by those who are afraid to trade.

Don’t be one of them.

Instead get our “Short and Sweet Tips” column every month in our “…In Plain English” newsletter (HERE).

Share this with a friend…especially if they think they know how to trade.

They’ll thank YOU later.

At Financial$Matter We’re Not Just About Finance.

We simply use finance to give you hope.

https://www.financialsmatter.com/category/in-plain-english/

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