Tuesday, September 30, 2008

I wonder what Ball State alum Brian Collins has to say about yesterday's market activity:




Being a short term trader it is important to separate my opinions from what is really happening.  As a short term trader I trade what the market gives me.  If my PnL is saying do more I do more, if it says do less I say do less.  If my indicators tell me to get long I do, and vice versa. 

I (as many of you I am sure) have been inundated with questions about the market recently.  I am hearing from long lost friends asking if they should pull their money out of 401ks? Is this is a bottom?  (My favorite is family members who say "you must have had a bad day"...yes we only make money on the way up). I am not a financial advisor and I do not know where the bottom is.  I can pick several blogs and articles written by smarter people every day from July to today calling a market/housing bottom.  It has been documented that Alan Greenspan himself has indicated/suggested a housing bottom several times in recent years. (Google "Greenspan housing bottom"). 

The point is to listen to opinions, develop some...but in the end listen to the market.  Listen to what the market is doing as opposed to what you think it should be doing.   

I thought the S&P gave us the answer to the bailout vote somewhat earlier than CSPAN on Monday.   

I will most likely miss the market bottom.  I won't try to predict it.  But I will be with the trend before and after the market bottom. 

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