Trading lessons again

1. Not losing money and earning steadily in trading
This can be achieved by selling call / put options when the stock prices are trending sideways or slowly trending. Must proceed with caution if positions are not covered.

2. Losing and winning a lot of money in trading
This happens when the stocks prices are swinging wildly with long red or green candles. (That's great opportunity for day trading.) This seems to be happening more frequently these days, perhaps due to AI trade bots??

Must practise Jedi mind power - astute and quick judgements (analytic skills) to act on the price actions, hedging if you must. Also, must curb greed - take profits before you get caught with your pants down.

Sometimes I would do number 1 for too long until I got complacent and was slow to react when number 2 happens.

In a nutshell, different strategies are needed to ride different market conditions and avoid speculations, although trend predictions are less certain these days

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The financial market now...

We are in a pretty crazy hot market right now, where stocks, cryptocurrency and gold have sky rocketed in prices. When yields drop, we would expect bond prices to rise (it's a vice versa chicken & egg effect). Short term bonds e.g money market funds are no longer offering good yields. Longer term bonds would become more attractive but not sure if attractive enough compared to gold (perfect hedge for inflation?). Perhaps we will see REITs recovering slowly from their lows and my REITs will finally be out of wintering. When everything shoot to all-time-high then it's time to review again and prepare a prepare-for-crash strategy. Maybe then cash will be king again?

By the way, I was a terrible trader. My trading portfolio is still in the red.

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