Friday, December 23, 2005

There Is No Speculation Santa Clause

Just a Market Grinch that wants to steal your milk and cookies.

Hope is a dangerous emotion when speculating.

Hope can keep you in losing positions far too long.

Constantly check the reasons for entering the trade in the first place. If the trade does not act as anticipated, within the time frame expected, get out.

It is far easier to think rationally when your money is on the sidelines.

Hope that is not backed by solid reasoning will steal you blind - because hope alone can make you blind.

If your trade starts to turn bad remember this point:

  • When you are in a hole, stop digging.

It will be much easier to plan when all speculations are available to you. The other option is trying to rationalize just the one in which you are behind.

There will be other, better plays - let the loosing one go.



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