With record highs being reported on all the indexes and stocks motoring up to new highs, it would seem everyone must be making money. Unfortunately, this is not the case. The manner in which markets goes up can be gut wrenching, because its far from linear and just when the market seems paused to go down, it rockets to new highs. In this process, many traders go for what appears to be an easy ride to new highs, but get stopped out when normal retracement occurs.

Traders must put on trades with reasonable stops with the big picture in mind. The best way to stay objective about a trade is to risk the proper amount on any given trade. If you are excessively worried about the consequences of a trade , you likely have on too much size.  As a trade proves itself right, you may add to your position to further capitalize on your position. 

Markets that move a great distance in a short span of time are vunerable to deep pull backs which can happen very quickly. This will be an opportunity in a bull market to enter the market if you are flat. Of course as always, have your stop in place with any trade.