The Pain Trade

“Bears get slaughtered, Bulls get slaughtered, Shrubs photosynthesize”.

- Le Shrub, from Reminiscences of a Shrub Operator

Sometimes the Market moves to a regime of Max Pain, where it just wants to inflict the most damage to its participants.

Such a regime requires mental flexibility, high cash balances, a trading mentality and stop losses in order to survive. More sensible people should just stay out of the whole thing, until the normal course of business resumes!