If you’ve been worn out by the back and forth of this market I might have your cure. Look at this chart of USO. Examine the nice cup shape at the end – it’s a sight of beauty. This is what you want to be investing in. You want this sight picture. Whether you’re looking at stocks or commodities; your sight picture should look the same. Is what you’re “long” sitting above all the key moving averages which are the 8, 21 and 34 exponential moving averages. If not you’re most likely having a rough go of things.
This chop isn’t going to end anytime soon. Have you be putting off a paper loss because you’re waiting for your stock to come back? How is that working out? Did your stock go up one day only to fade the next for no rhyme or reason? You most likely are starting to lose patience and more importantly your confidence.
Try doing this tomorrow – sell a losing position. Better yet, break form and nip a small loss in the bud before a 5 ‘percenter’ grows into a 15 ‘percenter.’ Then do the following … buy something that looks like USO – btw – this is not advice – it’s instructional only – and handle it better. Write down 3 mistakes you made with your last several trades… and now don’t repeat them with your new position.
What’s my point? You have to put yourself in a position to succeed. You won’t find success in the markets if you’re waiting for good to come out of bad… you’ll spend so much time watching your laggard that you’ll miss your USO.
If you want to come into my office and trade with me send me an email. It would be a pleasure to meet, bond and commiserate together – tim.reazor@NorAmAsset.com
I often talk stocks and markets on twitter – you can follow me by searching for my handle – @TJReazor
I hope today’s newsletter helped.
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