Making a killing trading is probably one of the most widely used but least understood phrases used in financial lore. I want to acquaint you to the factors necessary as well as the time patience to be there for the kill!
This composition is entitled, Patience For The Kill! Let’s dissect this phrase according to emphasis on the words to provide the correct mindset. The first word in the phrase, patience, is far more important than the last word, kill. Yet I know as you began to read this, kill monopolized your focus.
Our 2 primary investment vehicles we trade at Cook Trading is the S&P e-mini futures and the U.S. 30-Year Bond Futures. Understanding the world of trading and actually having success in trading are Siamese twins.
The year was February 2000 and a large trading symposium was being held in New York City. I was invited to speak on trading stock market sensitive vehicles with emphasis on the Dow, S&P, and Nasdaq. I agreed to speak simply because I wanted to be on record with an impending kill. I started my speech with 2 sentences! You who are in the stock market now get out, you are about to get killed! I further said the stock market can correct 50%. You historians of the market know what happened following February 2000 into September 2001. Was my statement well received or even heeded? Absolutely not! Several of my subscribers to the advisory did listen. The year 2000 was the kill with the patience having encompassed 13 years prior to that back to the October 1987 crash.
This time I am not focusing on stock market kill but my ‘other’ trading vehicle, U.S. Treasuries being killed. Once again I am very afraid I will not be heeded but rather be mocked and ignored. The next 18 months will witness a decline in bond prices that will kill! How far down will they go? 20%, 30%, 40%? The amount of the decline is not important but it is important how much of the decline you will capture with a sizable capital position. If you are reading this and you say, I think I will try this with a small amount. This is a time to pick up the biggest bat in the dugout and stride to the plate. The bases are loaded, the winning run is about to be produced by you! Oh, did I mention it is the 7th game of the World Series and you play for the Chicago Cubs? Decades may pass again before this 18 month window will ever appear again. Will you take a toothpick to the plate, or the big lumber to whack the ball into another zip code?
Observe my commentary regarding the U.S. Treasuries over the next 18 months religiously.