What we have right now, is a once a lifetime event. The only thing closes to this is 1929.
- Therefore, continue to use the normal oversold and overbought indicators is not enough.
- Have to follow the main trend, which is down. Therfore, fade every rally is the best way to trade this market.
- Can go long only when it's extremely oversold. We had these feeling on Oct.10th and then Nov.20th. These are the times to be brave.
- Market was down 9% today. A bounce tomorrow is normal, use that to sell longs and add some shorts.
- Since I was bullish, I sold some OTM puts and some covered calls, so going shorts is necessary to reduce the long positions' risk.
- Stop being too smart to catch every bounce, I will be burned.
- Focus and trade less.
