I read a lot. I don’t mean I live at the library or Barnes & Nobles (although B&N is one of my wife’s favorite places to go); I mean I read a lot of commentary and a lot of blogs. I live by the thesis that you never stop learning and reading other investors and traders viewpoints is part of my curriculum. It seems everyone wants to either call the bottom or dethrone Tyler Durden at Zero Hedge by calling for the next apocalypse.
Currently the major indices are short-term weak, we have a textbook (like the ones written by Kirkpatrick or Pring) down trend with a lower high set on May 1st. But there still are so many people who want to catch that bottom tick, setting their focus on the upswing we enjoyed in the first portion of the year and banging their drum that it must continue; and it very well could, my crystal ball is broken. Trading doesn’t need to be this hard. Stop trying to make it this hard! There is no conceivable reason anyone needs to front run the market besides their 10 seconds of joy at the next cocktail party in front of people who likely don’t care. Respect the market and respect the trend.
By the same token you can’t be afraid to trade when the time is right and you are able to identify a position that provides the risk/reward that your trading philosophy is best suited for. There will always be news. You can’t wait for Europe to disappear, Fox News will always be questioning the constitutionally of what color tie Obama is wearing, and the commercials selling gold aren’t going to away. Sometimes tunnel vision is needed to maintain your own sanity and do what’s best for you and your portfolio. There is no reason to be a hero, simply set rules and follow them…you’ll sleep a lot better.
Disclaimer: Everything in this post is meant for educational and entertainment purposes only. Do not construe anything written in this post or blog as a recommendation, advice, or an offer to buy or sell any securities. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer.
