What a difference a week makes. Two weeks ago we were in a nuclear standoff with North Korea’s mad dictator. Then just a week later the nation was plunged into a “crisis” over a few thousand – or is it a couple of hundred? – Klansmen and Nazis, which had the smartest people in government, business and politics refighting the Civil War. Kim Jong-Un and his sycophants in Pyongyang must be laughing themselves silly, or kicking themselves for backing down.
If all we have to worry about is a bunch of Klansmen and Nazis parading in the streets, things must be pretty darn good in the United States. So intelligent investors shouldn’t be overly alarmed and go about their business, as they seemed to be doing by the end of last week.
Then again, this phony outrage has nothing to do with racism or hate or statues of Confederate generals. It has everything to do with President Donald Trump’s enemies trying to remove him from office.
Whether they will be successful or not remains to be determined. But last week’s events certainly should leave us a little concerned, since we learned a little bit more about who Trump’s friends are, and who he can count on for support if things get worse. Continue reading "The Madness of Crowds"→
I just want to thank you all for all your comments on this posting. I've taken some personal attacks on this from people who don't know me and who accuse me of being a racist. I found that one comment repugnant, and certainly not reflective of my views on humanity.
I have also taken plenty of hits from those of you who think I am on the far right and hate President Obama, nothing could be further from the truth. And those of you who think I hate the left, you are also way off base and incorrect in your thinking. So then, I must be a right wing nut? Sorry, no on that front also.
So why would I intentionally post something on our very reputable blog just to bring out peoples emotions? It was to bring attention to an important trait that you must have if you are going to be successful as a trader. Here's the takeaway lesson, and it has everything to do with the markets.
What I am talking about is EMOTIONS. Bottom line is, personal emotions have no room in trading or investing. Just look back, we are all guilty at some point or other of letting emotions get the better of us in trading. Here is a typical scenario, you get caught up in some story or tip from an expert on TV and you irrationally put on a trade. You have given this trade, no thought or analysis, yet you are committed and in the market. Then what happens? You guessed it, you lose money.
So here's the question I have for you, if the market throws you an emotional surprise, do you act emotionally to that news or do you have a clear game plan that is well thought out and void of emotion?
Here is what I mean ...
The market is not personal, it is not your best friend, nor is it your worst enemy. The fact is the markets are just about as cold and emotionless as you can get.
What causes all your problems in the market is not this blog posting, which I knew would cause an uproar, hence the title "This is going to infuriate some folks but it needs to be shared"
Once you get emotionally involved about a market, all of those human frailties begin to sneak in. You know the one's I am talking about,fear, greed, anger, frustration, happiness. I would absolutely bet that many of you have had those emotions sometime when you have been trading.
As a trader emotions are by far the biggest hurdle to conquer. It is far easier to find a trade and go long and then take a profit, than getting your emotions under control.
MarketClub's Trade Triangles do an excellent job as someone commented on this particular blog posting of providing a non emotionless way to trade the market. If you take ALL the TT signals in a disciplined, emotionless way, you will make money with our service.
I want you all to know that our mission here at MarketClub is to help you become a better trader. Sometimes on a blog like this you have to be dramatic and a little edgy to make a point, this was one of those times.
So here is the bottom line, leave all those emotions behind you when you put on your trading face.
Here's to your best year ever in 2012. You can achieve this goal when you eliminate the "BIG E".
I received this email from a good friend on mine and I wanted to share it with everyone for comment. For those of you who say politics don't play a role in the markets, it is time to wake up and stop looking through rose colored glasses. Just look at Europe!