Snip from Tonights Wednesday Report

“It never ceases to amaze me how fickle investors patience can be most of the time. It is always nice to put on a trade and it takes off just as you expected it would which is the exception rather than the rule. There is only one person that buys the absolute bottom and only one person that sells the absolute high. Everyone else takes their position somewhere in-between. If you don’t buy the exact bottom quote then chances are that you will be underwater for a bit if your original thesis, on why you bought the stock in the first place, is correct.

There is an old expression in the markets that states, “you can never go broke taking a profit.” I couldn’t disagree with that statement more. What happens when an investor takes a small profit to lock in their gains? What happens most of the time is that they get left behind looking to get back in the trade they just exited. They either pay up to get back in or they stand at the train station waiting for the next train hoping to get back on. Many times that train doesn’t come by for many months or even years in some cases when a strong impulse move makes it difficult to find a new entry point.

I find that getting an initial entry point to stick long enough for the trade to go in your favour is one of the toughest aspects of trading. You can be right in your analysis but the backing and filling a stock does can often times play on your emotions. Emotions are investors number one problem. If the trade doesn’t immediately takeoff in your favor you begin to question every aspect of your trade. Did I get in too early, too late, what indicator did I miss that always worked before? I could go on and on but I’m sure you get the point.

They begin to read every opinion they can find to help them deal with their emotions. Maybe this guy has the right answer or maybe that trading system is better than my system. Instead of sticking to ones game plan they lose sight of the reason they took the trade in the first place and let their emotions take over. It’s never any fun taking a loss but that is the nature of the game we choose to play. If there is a 100% sure way to play the markets I hope someone will be kind enough to let me know.”


When Rambus and I first hooked up with Audept to bring you all Rambus Chartology back in November 2011 ( yes Just after THE Top ) I used to like to say “Patience is for Sissies”

Rambus had put on a short ( JDST) and it was going nowhere and I kept saying it …I bailed on it and shortly after came the BIG Kahoona Drop in PMs.

Never one to gloat Rambus shot me a note. ” hey Fully still think patience is for sissies ? ”

Ha ha funny guy….touche !