Pullbacks are normal. Everything is fine. Don’t panic.

Oh boy!

Is that quote ever true.

In the age of instant dopamine-hitting social media, microwave ovens, and near-instant Amazon delivery, patience is becoming a lost art.

Yet it’s this essential skill that separates the professional traders from the ones who “lose their shirts.” The latter being people who panic and/or treat trading more like a lottery than a business.

Professionals treat trading like a business.

Because, well, it is a business.

After all, that’s why they are professionals.

To be clear, I consider myself a professional only in the sense that I am running my personal trading accounts like a business. I am not a licensed professional doling out advice.

This is why I’ve “cleverly” titled this newsletter Trading Thoughts.

Because thoughts are not advice, they are opinions.

Anyway, that little rant aside, we’re in the midst of a market pullback and that always requires patience. Even after all my years trading, I still have to remind myself that pullbacks are normal, everything is fine, and “Don’t Panic.”

This morning I want to share those words with you.

Pullbacks are normal. Everything is fine. Don’t panic.

Yahoo Finance

Why it matters …

From the article …

“Stocks are on track to close a bumpy week in the red, dragged down by persistent worries about an AI bubble as Big Tech valuations run high. The S&P 500 and the Dow are headed for solid weekly losses. And after sharp slumps for ‘Magnificent Seven’ stalwarts such as Nvidia, the Nasdaq Composite is heading for a 2.8% loss for the week — its deepest since April and Trump's tariff ‘Liberation Day.’”

There are always reasons out there for the market to be either red or green on any particular day. So far, we are looking at a normal pullback after hitting new all-time highs. Some of my positions have been rolled for great premium this week and a couple will probably expire worthless today. The system works, just work the system.

Comments: It’s another red opening. The market does not like uncertainty and the Government shutdown has gone way too long. I’ll say it again: pullbacks are normal, just “sit on your hands” and don’t panic. Roll positions as necessary and count the premium. Net liquidations are taking a hit, but the premium is the investment into the future and this week has been amazing from that perspective.

Check your positions like a normal Friday and be prepared to make adjustments based on your preferences.

A Bravo scan trade idea for around 1.92% return on risk into next Friday’s expiration.