While for many – the holiday season is one the best times of the year…
For investors like us – it’s one of the weirdest – as traditionally, the closer we get to Christmas and New Year’s Day, the less inspired our trading becomes.
It starts sort of slowing down after Thanksgiving…
But the weirdest week of all – tends to be the week between Christmas and New Year’s Day – as many of us are just looking forward to the starting the new year off right.
“2022 is going to be MY year!”
So, with things winding down to an extent – the question on some investors’ mind is: “Should I just coast through the rest of the year?”
Meaning, should they mentally shut themselves down until they can truly focus come January 3rd?
There are pros and cons to both sides of that coin…
And the answer to that question tends to be connected to the person – and investor – that you are.
But – is there one choice that is better than the other?
The answer may surprise you…
Now, it’s general common knowledge that the markets begin to slow down the closer we get to Christmas – that much is a true statement…
However – with everything that’s been going on recently, should we consider going on hiatus now?
Maybe…
Let’s explore the possibility of we investors making like a bear (not a bear market, mind you, but an actual four-legged animal) – and simply hibernating through the rest of December.
Do people really suggest taking the rest of the month off and just let the market do its thing without us?
Now, I’m not suggesting that we take the rest of the month off from investing…
But I am suggesting that with everything that has been happening in the markets lately – that maybe… possibly… we may want to consider it?
Look…
I fully understand that November and December have historically been strong months for stocks – the Santa Rally is a very real thing – as big time investors sell their weaker performers and buy up some runners in order to end the year on a high.
But…
With recent sharp drops that have happened over the past couple of weeks – Wall Street has been hit with a 1-2 combination that has left investors feeling a bit battered.
The emergence of the Omicron variant of COVID, the nixing of “transitory” from the way to describe inflation, and rumblings of “tapering” and “rate hikes” and from Federal Reserve chair Jerome Powell – have heads all over Wall Street spinning.
All of this negative action happening so close together has sent the VIX – a measure of volatility in US stocks inferred from the amount people are paying for options – above 30 for the first time since February…
And worse, has sent CNN’s Fear and Greed Index into “extreme fear” region.
People are freaked out…
And with the holidays just a few weeks away – would it be prudent for us to just let our portfolio coast for the rest of the month and then pick things back up after New Year’s?
Absolutely NOT!
Are you CRAZY?!
What kind of a weirdo would EVER suggest doing something like that?
Of course we shouldn’t stop trading – if we do that – then the communists win. Ok, that may be a little extreme – but there is no reason for us to stop trading…
Though, we may want to pull back a little bit until we see how 2022 is going to shape up.
So, I have a three step plan to help you sort of “mute” the worry of volatility in the markets for now – until you’re ready to jump back in full tilt boogie.
First step? Avoid reading too much financial news.
If you want to know what’s going on – GorillaTrades will do its best to keep you abreast of any of the big developments…
You don’t need to be constantly connected to your phone to be a good investor – just follow my email recommendations – and you’ll be golden.
Step number two? Don’t constantly check your portfolios – be that your stock investments or if you own any crypto investments.
Some bouts of brief volatility could have you making emotional decisions at a time when you don’t need to be stressing about it.
And finally, step number three: Create firm numbers at which you’ll exit from your more volatile plays.
Maybe it’s having a firm stop loss of 10% or 20%…
Or maybe if one of your plays doubles – you’ll sell half of your position and let the rest ride…
Regardless, decide RIGHT now to set up price alerts and/or stop losses – and you won’t have to worry about looking at your phone every 90 seconds.
That doesn’t sound too hard, does it?
Again, these are just steps for those that are feeling a little overwhelmed right now.
For the rest of us that are out there and ready to trade – nothing changes – it’s business as usual.
GorillaTrades will continue to put out stellar picks through the rest of the year…
And I’d love to have you with us! However, I get that there are some “lone wolves” out there that’d rather go it alone – and we totally respect that..
But if you ever need a little help – you know where to go.
Until next time…
“We love being mentally strong, but we hate situations that allow us to put our mental strength to good use.” – Mokokoma Mokhonoan