January 3, 2013
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Trading Update: December Performance
Trading for this month was cut short thanks to all the “Fiscal-Cliff” drama that was making the markets pretty skittish. Still in all, it was a good month.
I had no desire to get caught on the wrong side of some big market move inspired by some surprise Washington budget negotiation news. When the market gets very news sensitive like this “Fiscal Cliff- will we go over or not?” event, the market moves more into pure casino mode where it’s either going to zoom up or down based on that specific event.
At that point, it’s basically a big gamble to take a position on either side until the decision is made.
Some folks like taking on that risk because the rewards can be great – the market jumped a significant amount once it looked like a deal would be made in time. Those who were long made a very nice profit fast while those on the wrong side had heavy losses.
I try to avoid being in the market when analysis is dominated by a singular news event. I’m a trader, not a gambler.
December Performance Vs Indices
