I love stock trading. In fact, I am in love with the stock market. When the bulls and the bears are fighting as they are now (and forever will) I like to step back and take a look at the landscape. Is it not so easy to look back at the charts and ask yourself “How did I miss that?” When news comes out such as an economic report or an earnings announcement we immediately want to predict where the market or stock is going to go…based on common sense logic. It rarely pans out the way we think it ought to leading us to exhibit pure disgust on the nearest Yahoo message board. And then we look back and say “I should have known better. Those contrarians sure do know how to play the market.” When an obvious to everyone including CNBC stock chart pattern forms we jump on board with the crowd surmising that this is a can’t miss opportunity. We certainly do not want to be caught in the boiler room with our hands in the cookie jar now do we? Then we realize that those who have the money to move the market take advantage of those who think they can.
It is OK to step back and take a look at how silly the market can be, changing moods from day to day, even hour to hour. It is OK to see how the truth is most oftentimes hidden behind the obvious. It is OK when 1 + 1 does not equal 3. It is OK to know that Ms Stock Market may be getting tired of hitting her head on the ceiling or has had enough of tip toeing through the tulips. It is OK if the market decides to take a ride on a balloon or the Hindenburg, only to get caught on a cross. It is OK if luck or hard work has nothing to do with your ultimate success.
It is OK to step back and think like a child again!
