A Strategy Keeps You Safe

The last few days have been interesting for me, to say the least. My last couple posts were detailed descriptions of how I decided on my picks and how I came to my entry points. The result of those picks has been a no-go. Each time I put in the order the stock did the opposite. But here is the thing. I am still happy.

How can I be happy when my picks have been wrong? It's because I didn't lose anything in the process. That is where having a strategy comes in. Each of my entry points were far enough outside the previous days movement that it required the stock to move in my desired direction in order for the order to be triggered. Because neither of the stocks moved in the desired direction, I wasn't put in a position that I could lose any capital. That is why it is so important to have a strategy.

One of the reasons this blog exists is to document this investors experience in the stock market during a turbulent economic period. To show that it is possible to make money. Another reason is to re-emphasize in me everything that I have learned and to help me become a better investor. I post because I hope to become a full-time investor one day. I also hope that those who follow my journey to that goal learn from my experience and become better investors.

After the past few days, and especially today, I have an opinion about the market direction. If tomorrow is a day like today, we might be in for another bear run. However, if the market makes a move like it did in mid-August and early-September, we are looking at a simple pull back. That is my opinion, you can take it or leave it.

Disclaimer: See bottom of page. http://investorsopinion.blogspot.com