Thursday, December 28, 2006

New Year resolutions...

We all humans, we all use dates to make important decisions, we need excuses like
"After New Year I will ..." - and those dots are just what I'd like to talk about.
But first lets have a quiz, simple one, "Yes" and "No" answers.

1. Recently you had a "fender-bender" cause that other person stepped on the brakes all in a sudden.
(Not because you were not ANTICIPATING such event)

2. Your kid asked to go to the country fair together and you were too busy studying the stock charts.

3. You lost on a trade because of intense argument with your better half ( Hey, the "other" half is ALWAYS better :)

4. You did not do something in time ( you were too busy watching delayed YAHOO stock quotes) and your boss did not give you a raise.

5. For your portfolio you created 2 separate watch lists - one for stocks in green and you watch it religiously all the time just for the pure pleasure of it, calling your neighbor to show this list and be able to say: "On average those stocks are up 5%",
the second list which is substantially bigger in all respects, such as number of stocks and negative percentages, but of course, no more than -50%, of course not - your broker most likely sold that deeply margined position to be safe, and that SECOND list is the one you prefer to never look at, agonizingly hoping that somehow, miraculously you will get your money back, sometime, not soon, but sometime - and you quit smoking in order to be able to live long enough to see that moment

6. You come home from work ( let say 7 PM EST) and you run to look at your portfolio and then you say: " I knew it was going to go down - I had to sell yesterday!" instead of "SELLING YESTERDAY"

This list can go on and on so I'd rather stop right here before I become even more cranky than I usually am.

THE BOTTOM LINE - If you answered "YES" to one or more questions, then the "dots" in unfinished "New Year resolution" MUST be replaced with

"After New Year I will NEVER TRADE AGAIN"

After you say that, you might
1. ( Most common one) - BREAK YOUR PROMISE, lose your money, lose your job, family
( SAVE YOU ALL GOD FROM ANYTHING LIKE THAT - I, myself, almost lost everything many years ago )

2. Really stop trading ( tough choice - I know )

3. Find the BALANCE between trading and life, family, work, all that really important non material stuff, re-analyze what you did wrong, stop hiding from reality of unavoidable losses, stop blaming someone else for your mistakes, in short "learn to stand the heat" - in this case

Many Happy Returns, Best wishes to you and your families in New 2007 Year.


P.S. For those of you who are still reading - my "New year resolution" would be to start series of posts dedicated to more detailed explanation ( my understanding ) of
"Trading rules"
( I cannot promise that I'm going to start posting videos explaining "why and how" I picked "that" stock - for me it is close to impossible to answer, for me technical analysis are broken down to 2 main elements
First - very basic chart patterns, some technical indicators to confirm and, plus, many years of mistakes. See - I'm not even good with math!)