Re: Mr. October/ Heading for the Showers/ Zero Tolerance Policy newSubmitted by 2nd_ave (4740 comments) on Wed, 10/13/2010 - 21:02 #71532 (in reply to #71514)
bobbyo- Too funny. There are few mood swings on my part, of course, and I know you realize that. If anything, I'm pretty detached most of the time, and seek only to fade the prevailing mood.
In fact I remain quite bullish, both short- and long-term. A doubling of stock prices over the next 12 months for certain blue chips (INTC, CSCO, V, WFC) is well within reach, IMO.
From a trading perspective, my biggest problem right now is (near) zero tolerance for drawdowns (compared to taking them in stride). So I've missed out on several nice gains by being caught position-less rather than fully invested in a stock (today's move in V being a good example). I'm now out of INTC and WFC- both may catch me offguard and rocket higher while I'm 'asleep at the wheel.'
On the other hand, I'm pretty tired this week. That usually translates into making mistakes. The market (which resembles a casino in so many ways) will still be here when I get back.
[ADDENDUM] There is no lack of reasons to get upset if we indulge ourselves. The healthiest perspective is to realize it cuts both ways most of the time. This afternoon, for instance, I could have focused on the hit I took in INTC (knowing I would be preoccupied at work, I could have set a hard stop, but you could say I was 'blind' to the possibility it could sell off that hard). Instead, I chose to celebrate an almost unbelievable close for FSELX (Fidelity Select Electronics)- I noted that SMH had closed down -1.4% and was prepared for the worst (I had half of the buy-and-hold portfolio invested in it). When fund prices updated later in the day, it was a pleasant surprise to find FSELX had managed to close in the green!