As yesterday was one of those dull as dishwater market days and today’s action (as of 13:09 CDT) looks just as dull, I thought I might elaborate a bit on my introduction and perhaps share a few thoughts about understanding one’s self as a trader or investor.
That old axiom, Know Thyself, is vital for anyone who hopes to succeed as a trader. Firstly, one must conquer those twin enemies of every trader or investor: Greed and Fear. Greed takes the form of either hanging on too long or buying too much while Fear takes the form of selling too soon and hesitating too long to buy. Myself, as a person I’ve always had more fear then greed. Avarice really isn’t in my make-up, whereas I am often afraid. Which leads to this further self-disclosure…
I am a Bear. I usually think that the market is going lower, that a Bad Moon is Rising and we are living on top of a most precarious house of cards. I’ve paid for this many times, missed many rallies (including this one) because I find it very easy to sell and very difficult to buy.
That doesn’t make me a bad trader as long as I am aware of my bias and try as best as I can not to let that influence my trading decisions. So, Know Thyself. A good amount of self-awareness goes a long way towards making one a successful trader as well as, come to think of it, a successful human being.