This Element is an excerpt from Trade the Trader: Know Your Competition and Find Your Edge for Profitable Trading (9780137067084) by Quint Tatro. Available in print and digital formats.
The two most common myths about trading and risk: why successful traders know better, and you should, too.
The idea that you should always have stock exposure–and the level should equate with your age or time horizon–assumes that market timing isn’t possible. If that is the case, it’s just a matter of time before the hundreds of consistently successful traders I know go belly up. Sorry to all my trading friends: it’s been fun.