Pimp My Trade

When Not to Trade

Posted on February 9, 2009 by Adam

I’m feeling good today. I woke up late, went to McDonald’s ((MCD: 69.38 -0.56%)) for breakfast, and wrote a long piece about society and economics. Dayyum those McGriddles are delicious. Because of those alone, MCD should be trading higher. By the way, if you’re looking at MCD here, I’m lovin’ it — as a short. Just look at the way it has reacted to the $60 level over the last year. Nice and low risk, although probably not the highest probability trade.

In any event, I only hold one position right now, and that’s a short in GE. It’s crushing me today, but it’s a small position, and I think it goes lower eventually. I stopped out for a loss on another position this morning, but all in all I’m sitting pretty.

I’m perfectly content to not trade right now. I don’t need to, and I don’t see anything that looks good enough to bite on, so I’m waiting for the market to tell me what to do. I’ll make money as the market makes it available to me.

If you guys are happy to trade here, than by all means do it! I’m going to wait it out until this bailout thing is finished to dive in.