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.

_______________________________________

 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!

I’ve recieved a whole lot of mail from people concerning Nucon, Coffee Pacifica and Cryoport.  Mostly from angry people claiming I led them down the garden path.  All but 4 of these people failed to mention, or remember me saying a month ago that we were exiting certain positions because of the nasty look of the chart…that being said.

Nucon, Cryoport & Coffee Pacifica

Is there any hope for them?

A lot of people still involved in these stocks are now wondering a few things:

Why are they going so low?

These stocks are going low because people no longer believe in them.

When will they reverse?

Tomorrow, next week, never!

How long should I continue holding them?

How long can you afford to wait?

How is it you were so wrong about these companies Mr gnome (as I am called).

The most succesful traders in the world (and I have mentioned this a few times) make 90% of thier money on 10% of their trades.

They go into the trade knowing they are planning a hold of 6 months to a year, or they are holding it for 1 day or 1 week.

As long term holds there really is still nothing wrong with any of these companies…really.  Fundamentally they are revealing everything they are required to by the SEC, fundamentally they are all in positions of growth….

I suspect many people bought into these stocks looking for a quick profit, mostly because of the way Nucon raced to $10.00 .  A lot of people who recently entered the trading game are now crying foul and have become bitter about trading.  If you do not follow simple fundamental rules, you cannot hope to succeed at trading.  That means that if I or any other website suggests a stock, it is still your responsibility to enter that position with a clear game plan and exit strategy, in essence…”own your shit”.

I have visited more than a few investing message boards this weekend that have boards for out mentioned stocks, and they are very ugly indeed.  Remember this is a typical reaction to feeling helpless and wronged by the evil stock market.  If you are overly concerned about the money you may have lost (this refers to anyone who has exited a position in NNRF, CFPC or CYRX) since they dropped….then you should not be trading in the first place!

If you are down to your last 5 bucks, or cannot afford your car payment, then it was a bad idea to invest money you could not afford to lose, you should not have done it in the first place, and you’re a fucking moron!

It may sound bizarre, but you have to become like the wealthy, and actually not care about the money, once you do this, you’ll be better off.

 If you still own the stocks we talk about, remember that you have not lost anything till you succumb to fear and panic…and sell.  It may take some time, but I still believe fundamentally they are sound companies that will reverse when they share important news, earnings and growth potential.

Further, it is my opinion that now would almost certainly be the worst time to sell as you would have bought at the near top and sold at the near bottom.

Since they are all so low again, we’ll mention them as needed in the coming weeks, but no more.

The dow, yes after breaching the 13700 mark, the dow has gone up 2 more consecutive days, I’m still not convinced a big selloff isnt coming, but will soften that stance when I see how the rest of this week plays out.  As long as the 13700 mark holds as a new line of support, we’re in good shape.