Sometimes the market produces fast money....some of us trade these fast moving rivers....and some of us don't. It isn't right or wrong.... really just different choices and investing styles.
But when all is said and done....if you have gotten your hands on some fast Money, whether because you got lucky or you operated with genuine skill.....you have a decision for what to do next.
Are you gonna roll it all back into your next trade? Use it to build your next ideal set up? Maybe you finally are able to build you account back up to a healthy state. Maybe it's time for a draw down to allocate some of the good stuff to something Slow and predictable and more "safe".
Or are you going to take some profit off the table and put it into a slow moving boat on a lazy and trusty worthy lovely flowing river. You know what I am talking about. I am not telling you what to do.... I really wouldn't dream of doing that. Freedom is very precious to me....and no one really can control your choices. Your choices are yours....because the consequences are also just yours.
I know the hype a gal or guy can feel when they hit a few homeruns in trading. You feel like king or queen of the hill. But sometimes it matters what hill you allocate your winnings to. Sometimes it is the very best choice to simply take your toys and go home for the day.
We don't know what the Market will prepare for us tomorrow or one week from now or one year from now. We may be facing proverbial feasts or famines...all in succession or in one epic shocking season.
One could say...hey Carla, are you telling us to play it safe? Well...um....no not necessarily. I am encouraging you to acknowledge the "state of the union" of your trading accounts. Yes, you may have skill. Yes, you may win again. Maybe your years of trading experience are finally starting to pay off. I want to congratulate you. Well done...well played.
But when you win, it becomes more important that you know how to play your wins. Do you roll them out to new and increasingly risky trades? Or do you move some of the winnings to your boring uncle's retirement strategy. Do you give some stability to your home life so that your family knows that you aren't betting the family farm?
Steering the boat through raging rapids is fun and exhilarating. It can not be matched. But there are times too...in the future when you and your loved ones will need still waters.....still waters that pay the bills when the market is up AND when the market is down.
So please my friends and fellow traders and readers....stay objective and don't let the market rule you.
Your choices and your priorities are more important than anything the market can and will give or take away from you.
Much respect and peace,