Post by
Starsearcher80 on Oct 04, 2022 10:38am
IT SURE AIN'T EASY
The more years I'm in the market, the more I value "seasoning". It's NOT just an understanding of the market, although that of course is important. Equally, it's an understanding of YOURSELF in the market.
I have a lot of shares at an average of $20.00, with the thought to hold these for what I still believe will be a much higher/stronger gain. That's fine. But 10 days ago, I bought a whack of trading shares at $26.65. This was NOT an easy purchase, as I was already somewhat miffed that the stock had come off as much as it had. First rule: "Emotions kill".
I've been around the market for close to 4 decades now, and truly have seen it all. Not much rattles me any more, and that's a good thing when it comes to keeping emotions in check. But here's where that seasoning comes in. Whenever I take a position in the market, I immediately set about challenging my reasoning for that position. I actively look for reasons where I'm wrong.
But there I was, 10 days ago, NOT being happy about the market, and NOT being happy about Bombardier in the market. As much as I have trained myself to keep emotions at bay, I could feel the emotional content creeping in.
Generally when that happens, I know to move away from the market. I don't mean sell. I mean literally shut the screen down, if only for a few hours. It gives me time to think, and I don't need the screen on to do that. My consensus feeling was that this was NOT a Bombardier issue at all, but rather the market becoming extremely emotional, if not losing its mind. The market does that.
Back in the day, as I was trying to develop the skills necessary, I would have whole-heartedly joined in the emotional content. And true to many retail investors, I had an uncanny ability to sell right at the bottom. NOT good. But now, with all the experience I have, if I actually get to the point where I'm feeling that emotional content creep in, I take it as a positive sign that a bottom is close by. Now, it takea a LOT to get me rattled, but there I was. But now, with that seasoning and discipline, instead of selling, I'm buying. Make no mistake though, it sure ain't easy to do that. It's discipline, and nothing but, doing everything possible to keep out the emotional content.
From that purchase, the stock tracked lower still. I bought about 1/2 as much again, and again without emotional content, although the market was in a complete tailspin. Best as possible, I looked at the situation, and chose not to panic along with the market. I made the purchase, and shut the screen, and the next couple of days, I "loosely" followed the market, but mostly went out for a LOT of fresh air.
Today I sold those trading shares, averaging in the $28.30's, taking about a $10k+ gain on the 10 day effort. Good enough to keep the lights on for another couple of months. Longer term shares (which are al lot more than the trading shares) remain untouched, and no inclination whatseover to consider selling those until much much higher prices.
I bring this all up not to sound boastful or anything of the sort. I bring it up to tell people that you first need to understand the market and how it works, and then EQUALLY important, how YOU work in the market. I'll put myself in the category of "seasoned as Hell" and still, it sure ain't easy. If this is new territory for you to consider, then use this statement as a good starting point.
The BIGGEST risk to making money in the market is YOU.
For newbies, it comes out in all sorts of ways. You get overly excited. You become a cheerleader and/or marry a stock. You become so distraught you sell at the bottom, when you should be buying the heck out of it. And on and on it goes.
They say Spock would have made the best trader, and I think that's true. On a given day, I can make a lot of money, or can lose a lot of money. Outwardly, emotions fully at bay, I look the same. My wife knows the quirks of me though. On days where I'm risking emotional content creeping in, my feet are up on the desk. If it's really creeping in, I'm out for long walks.
Anyway folks, just passing on a little street experience here. You've got a real time quote and some charts running? Good for you. Welcome to the BEGINNING of your education in the market.