RISK!

We are going lower. Could we bounce tomorrow? Sure, why not. I will add to my shorts either way. We are going lower.

My general mind frame in the market is that anything can happen and you will often be wrong. At the same time, I want to get paid when I'm right. Don't feel as if I capitalize on winning ideas to the degree I should in order to maximize my returns. The whole idea is to maximize profit and minimize loss. I feel confident in my ability to do the latter but not the former. So in a situation like this, where I have a high probability of success, I will press my bets, i.e. take more risk.

Let me put it this way: if we go lower, say re-test the lows, I will get paid. I will materially improve my situation.

So here is the challenge. I have to stay put and wait. Not so easy. It's a big and growing position and I tend to have happy feet. I have to submit to the volatility inherent in a bet of this size. If I entered at the right time my position will not be threatened by a pullback. If not, I'm wrong and I admit it. Limit losses, period.

My time frame has gotten shorter, and churn higher, lately due to a number of factors. Choppiness of recent market action (i.e. failed breakouts, of which there are many) and more time spent in front of the laptop in the summer, to name two. Looking to play the big swing here in the longer time frame.

All the time I am closer to taking my trading to the next level. Now with better tools, I'm tweaking and improving my trade all the time. The whole idea is to stay at the table or in the game until you get your chance to win big. But win big you must.

My biggest fear is the next bullshit bailout. Paulson and that other asshole, Bernanke. Better come up with some coherent plan fellas, Fannie and Freddie are going to zero pretty quick. The list of financials circling the bowl is lengthy. In totality, it's too big to bail but I'm sure the stunts will continue.