marketgnome.com

One of the most common characteristics of amateur investors is how two faced they are, not you of course, you’re special….just everybody else.

Noobs as I will call them, are always gung-ho, happy and full of enthusiasm…when things are going thier way. 

When the markets turn ugly, and they fail to sell out at a stop loss, they scream, kick, cry, whine, bitch, become completely negative and swear that if they can just get out of this one bad trade, they’ll never do it again…………….until next time.

A lot of what trading is about, I’ve learned, is patience. If a stock drops, but not quite to your stopout, you have to be patient. If you’re holding a stock long term and you find yourself below water for a couple weeks, you have to be patient.

You have to, in MY humble opinion, learn to stay even and neutral, regardless of if you’re up, or down. Don’t berate yourself too much, and don’t congratulate yourself too much either.

If you get overly pessimistic when things are going bad and you cannot control your emotions, you should get out of the trading game. If you get overly pleased with your self, the markets will come back and fuck you in the ass, HARD!

Someone sent me an e-mail concerning the validity of financial message boards.

 Here’s my opinion on them, worthless.

Any financial message board you go to is dangerous because you have hundreds of people, all with their own little opinions about everything.

Those who are long will post messages about imaginary conference calls they heard, inflated earnings potential, etc, etc.

Those who are short will tell you they heard a news story about the company CEO and a goat.  Bottom line, people lie on message boards, it’s part of the game.

 Do your own research, make your own decisions, never, EVER buy a stock based on what people say on a message board, especially if you are short term or position trading.

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 The dow finally broke through 13700, then pulled back slightly, but now it looks like the markets on a roll and we will be showing a few new stock ideas next week.

Anyone who owned Coffee Pacifica or any of the other long term holds we discussed would be  (just my opinion) foolish to sell now.  They have been drastically oversold and have returned to near all time lows, the only way for them to go now…is up!

Remember, long term means the stock can drop, right after we mention it, long term means more than a few weeks.  Long term means the company has a good business model and earnings potential….LONG TERM…is great.

That’s all for now, and remember, seatbelts save lives!