Lessons From a Volatile Two Weeks

Off The Charts

They are only losses if we don’t learn something from the experience. When traders woke up on Monday, August 5th to the VIX at 65 and the Nasdaq index down 5% overnight, they didn’t need a cup of coffee to snap into high alert. The easy first question to ask was: “What happened?” Many ideas were tossed around in the media and on the socials that morning, but nobody seemed to pinpoint the real cause. The narrative eventually coalesced around the gradual, then sudden unwind of the popular Yen Carry trade; but to many of us, that didn’t quite sound like a viable reason to sell everything. Nevertheless, when sucker-punched in the mouth by unexpected market turbulence, traders did what traders do when they don’t know what’s happening – they sell first and ask questions later. In this episode of Off The Charts, Sean and Steve talk about the mistakes they made during this tumult, the things they didn’t do but wish they had, and even a couple of smart things they did. If you traded during this wild couple of weeks of trading, you’ll find this talk both poignant, affirming, and inspiring.