I sat out today's rally.
https://www.youtube.com/watch?v=tT9Eh8wNMkw
https://www.youtube.com/watch?v=tT9Eh8wNMkw
While we're taking five, let's discuss the cognitive behavioral approach to a missed opp:
(a) What's the point of trading? Is it to nail every buying/selling opp? Of course not (if that's the goal, you won't last long - more on that later). No, the entire point of trading is to lower risk. I don't like taking big hits, and I'm willing to pay a price to avoid them. The price I pay takes the form of lower relative gains. (Once in a while, of course, the fact that I'm able to sidestep extended declines means that I'll outperform the market!)
(b) What's the cost of a missed opp? Some traders take the perspective of 'opportunity cost-' or as Peter Lynch once put it, 'Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in the corrections themselves.' Hey, that's probably true - but that doesn't work for me. I have a big aversion to sitting through -50% market crashes. My reply to the question would be, 'Nothing.' Sure, I didn't make any money today watching from the sidelines, but neither did I lose any money.
(c) What's a good year? For me, +7% is a good year. I'm currently up +9.82% year-to-date. Of course, most indexes are up >+20%! So I'm way behind. On the other hand, I ended 2018 off just -1.36% - well ahead of most indexes. I matched the indexes with my own +20%+ year in 2017. I can't even recall 2016, but I think it was a killer year. Ultimately - who cares? When it comes to performance, luck plays a big role and I consider myself fortunate to be up +9.82% right now. A couple of months ago I was up just +6% and happy about it. Everything in life is relative.
So what happens when traders feel the need to nail every opp?
new post
ReplyDeleteHow Lemeridian funding service grant me a loan!!!
ReplyDeleteHello everyone, I'm Lea Paige Matteo from Zurich Switzerland and want to use this medium to express gratitude to lemeridian funding service for fulfilling his promise by granting me a loan, I was stuck in a financial situation and needed to refinance and pay my bills as well as start up a Business. I tried seeking for loans from various loan firms both private and corporate organisations but never succeeded and most banks declined my credit request. But as God would have it, I was introduced by a friend named Lisa Rice to Le_meridian funding service and undergone the due process of obtaining a loan from the company, to my greatest surprise within 48hrs just like my friend Lisa, I was also granted a loan of $216,000.00 So my advise to everyone who desires a loan, "if you must contact any firm with reference to securing a loan online with low interest rate of 1.9% and better repayment plans/schedule, please contact Le_meridian funding service. Besides, he doesn't know that am doing this but due to the joy in me, I'm so happy and wish to let people know more about this great company whom truly give out loans, it is my prayer that GOD should bless them more as they put smiles on peoples faces. You can contact them via email on {lfdsloans@lemeridianfds.com Or lfdsloans@outlook.com} or Text through Whatsapp +1-989 394 3740.
ReplyDeleteThis link on financial services was very useful for my search. If you don't know about the Why Investors Must Pay Attention to Private Markets? then ADDX financial services helps you.