You have conviction or you don't.
Today, I think this needs to be black or white. You either have total conviction or you have no conviction. In between is going to get you emotionally killed.
An hour into the day and we've marched straight higher. A trend day could turn this into a huge move across the board. But what's clear to me is if you bought yesterday or this morning, then your conviction is to hold until today's morning lows are broken. Using yesterday's lows opens a trader up to too much risk in this environment.
We are seeing a strong Turnaround Tuesday and I get the feeling we're going to have some legs to this. There's plenty of room to add another 2%-3% over the next few days.
I don't want anyone to mistake conviction with stupidity or the need for "diamond hands." This is the perfect opportunity to trim and trail as a name rises. That means something different to everyone, but the concept doesn't change. Take partial profits as something rises and let runners run.
For instance, a trader might sell one-third of a position based on a trailing moving average. Maybe it's the 8-period simple moving average (SMA) on the 5-minute chart. Maybe it's when the position is up 3% or 5%. Maybe it is a trailing stop of the 3-bar low (pick your own time period). This determination will be based on position size, risk tolerance, goals, liquidity needs, and overall emotional feel.
So, yes, have conviction or sit it out, but whichever you do, have a plan. Where are you buying lower if you are still waiting this market out? Where are you selling if you jumped in on the dip? In my view, the second question is the harder one to answer and it will also be the one that separates winners from losers.