SPX500 About to buy a low risk high potential R:R trade
As per old post, very near entry now, appears risky buying this market as I've already taken a few cuts in this decline, but trading what I see...
This decline is unprecedented in terms of the speed of decline - and we have now hit the 20% market which is bear market - In an incredible 3 weeks waterfall type decline
but that should not prevent people using their strategies and trying to trade rationally
The panic has created a lot of gaps and liquid markets hate gaps, so entering with low risk with potentially high R:R seems logical
At worst it will be a small loss, at best - it could add 15% to my account because the targets are huge
This decline is unprecedented in terms of the speed of decline - and we have now hit the 20% market which is bear market - In an incredible 3 weeks waterfall type decline
but that should not prevent people using their strategies and trying to trade rationally
The panic has created a lot of gaps and liquid markets hate gaps, so entering with low risk with potentially high R:R seems logical
At worst it will be a small loss, at best - it could add 15% to my account because the targets are huge
Main reason I'm happy to step in front of this is that it is the initial significant decline after a massive 11 year bull run... and to expect it to fall apart in a straight line is unrealistic given historical bear market declines
This is the sharpest decline, but that does not mean it will not correct before selling down again
Be careful out there... not a beginners market - I started pre GFC so have seen these volatile markets before and had a few scare moments but a little greyer and wiser now... =P