If you’ve been following me for some time you know that I am an active trader, and in this market there are so many opportunities opening up each and every day.

While the right side (mostly) of the trade this year for me has been long calls, short puts…it really doesn’t matter to me which direction, just give me a trend.

My style of momentum/trend/swing trading affords me some time to let trades work when I enter them, but there is danger. If I’m holding positions I will always be vulnerable to a big whack, because I do not day trade, preferring to let the plays work. While I always have some protection on it is just minor insurance.

LOOKING OVER THE LEDGE

Days like Wednesday are frustrating with a mostly long portfolio. A quick move down is frightening, much like standing on a ledge looking down from a 100 story building. My current option trades generally will work if the market is staying elevated or rises. This also requires some sort of ‘calmness,’ and we see that with a modest VIX (currently under 15%). But a whack is painful nonetheless, and while prices have been rising over the last few weeks it becomes difficult to go completely to the sidelines.

For weeks we have been talking about a ‘hated market rally’ – they all are, right? Where/when do you get in? Am I late? Will I be the cause of a drop? All these questions asked and the only answer is action (or, inaction).

Like the next guy, I have a hard time disengaging from the markets totally unless there is evidence to support a full retreat. I’m not too stubborn to admit when I’m wrong and will quickly flee to the sidelines when it seems my edge is not there.

GREAT OPPORTUNITIES ON BOTH SIDES

We are in a market of stocks, great chances on both sides of the tape. Drops have mostly been great buying opportunities, and if you left the scene because of a bias then you were paying up for new positions. That sort of timing (in/out, in/out) is impossible to get right every time, but trying to escape is not easy –unless you’re Houdini.

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Learn more about Lang’s work here.