We often get so caught up in being ‘right’ and making sure everyone knows it. Trading is a zero-sum game, your decisions are made based of how you’re allocated and as traders we are clearly able to see if we are right or wrong based on whether the P/L is in the green or red. I mentioned before that it’s okay to be wrong and it’s okay to be greedy. What’s critical is having that moment of self-reflection and being okay with saying “I don’t know.”
I’ve mentioned J.C. and his site All Star Charts multiple times on my blog. He does excellent work and I really enjoy his style of writing. He posted an great piece on Friday, here’s a segment of his post:
I write this not to preach or point to anyone thats doing something I’m not or shouldn’t be doing. I write this for the same reason I write all of my blog posts – to put my thoughts on paper and keep myself honest. If you’re reading this and pick something positive up from it, then that’s terrific. Nothing makes me happier than seeing an email from a reader on the other side of the world, college kid, pro, retired guy thanking me for a blog post or chart. But a big reason why I do this is to keep it real.
Maybe a month from now or year from now I’ll read this and laugh at myself. Maybe I’ve been wrong and I’ll continue to be forever. Or maybe my cautious stance this month will be proven right somehow and I’ll look like a genius. I have no idea. No one does. The only thing we can do is manage risk as best we can. That’s it. And right now, today, March 8, 2013 – being small, cautious, and scared to do much is the best way for me to do it.
If you’ve been reading my blog for any period of time you can see that J.C.’s view on the market is pretty similar to mine. I’ve discussed numerous signs that have previously lead to market weakness and this appears to be one of those ‘this time it’s different’ periods of price action. I have great respect for J.C. and applaud his ability to self reflect in such an open manner.
Go read the rest of his post here: Thoughts on Risk (All Star Charts)
Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+.
thanks for the kind words Andrew