That's the classic line from Apocalypse now that I'm often reminded of during Member Chat, when people start to get nervous about a market sell-off. Rober Duval says "It smells like victory" and laments that "Some day this war's going to end." and THAT is how a prepared trader should feel about a market pullback.
Rather than victory, it smells like OPPORTUNITY – even if you are not on the right side of the trade. It's an opportunity to stress-test your positions and check your portfolio balance because, if you can survive this – you can probably survive anything.
From a balance perspective, we're primarily concerned with the sum of our Long-Term and Short-Term Portfolios and, currently, that's $175,178 (up 75.2% for the year) and $561,856 (up 12.4% for the year) for a combined $737,034 – up 22.8% from where we began the year ($600,000) despite the sharp pullback in the market. That's BALANCED!
We just had an extensive conversation in our Live Member Chat Room about portfolio allocations and scaling into positions, so I won't re-hash the strategy here but I will say that, if you are not weathering the market storm well enough to be in a buying mood – you're doing it wrong!
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