To say it's been an interesting June would be somewhat of an understatement, it's been ugly, the kind of ugly you can't fix with beer. Now that I've IFT'd into the S-Fund, I have the pleasure of measuring price & pain right along side everyone else who's invested. That's ok, I don't mind getting in the trenches, if you want to make money you have to be willing to get dirty. When I made my entry I estimated we were within 5 days of the low. That means I said the low will be put in by this Tuesday. That's a pretty bold estimate to make considering the circumstances this market is in, but I'm just arrogant enough to believe I can pull this off. Setting aside the humor, lets talk about reality for a minute and 3 things I believe are good to know when managing your account.
1. You, I, him, her, they, are not going to consistently time the bottom nor top in these markets. We are always wrong and more importantly the market is always right, so listen to what the market is telling you. Don't try to interject what you think, to the point where you attempt to force your trades on the market. Learn to separate your emotions and think about your account from an outside looking in perspective. If this was a co-workers account what advice would you give them based on price, time, entries & exits? Use the inner calm you were born with, the one that raised your children, the one that knows how to be an unmovable rock within the storm of emotional disaster.
2. Please don't compare your returns to me, Poolman, Intrepid Timer, or anyone else, just do better than you. Look for small edges to gain advantages over price and before you know it you'll find you're doing much better than you thought you were. While big victories are inspiring, it's the small victories that will carry you through the many years of investing you have ahead of you.
3. Lastly, please consider a trading diary, I keep one here within the forum. Write down why you made the trade, what you expect from the trade, when you expect to finish the trade, and what you expect to do if the trade falls apart. As time progresses you can see with clarity, knowing how your expectations have changed as price has evolved, it's very important, I do it because it works.
Take care and trade safe...Jason
1. You, I, him, her, they, are not going to consistently time the bottom nor top in these markets. We are always wrong and more importantly the market is always right, so listen to what the market is telling you. Don't try to interject what you think, to the point where you attempt to force your trades on the market. Learn to separate your emotions and think about your account from an outside looking in perspective. If this was a co-workers account what advice would you give them based on price, time, entries & exits? Use the inner calm you were born with, the one that raised your children, the one that knows how to be an unmovable rock within the storm of emotional disaster.
2. Please don't compare your returns to me, Poolman, Intrepid Timer, or anyone else, just do better than you. Look for small edges to gain advantages over price and before you know it you'll find you're doing much better than you thought you were. While big victories are inspiring, it's the small victories that will carry you through the many years of investing you have ahead of you.
3. Lastly, please consider a trading diary, I keep one here within the forum. Write down why you made the trade, what you expect from the trade, when you expect to finish the trade, and what you expect to do if the trade falls apart. As time progresses you can see with clarity, knowing how your expectations have changed as price has evolved, it's very important, I do it because it works.
Take care and trade safe...Jason
