In literature, a lament is an expression of grief, a capitulation to the pain of loss or sorrow. Although the email below mentions loss (of money), and it carries a tone of capitulation, it is less a lament and more an utterance of frustration with an inability to find success in trading. In his frustration, he clearly is asking for help. The help he seeks may be out there somewhere, but, unfortunately, it is not available here …
Been following many for a long time. I feel no different now than I have for a long time – so much rhetoric and examples of past success, but no guidance to the future. I am a simple person who uses all the tools in the box to decipher what the future will hold, short and long term. The only place I have been correct is long term not being in stocks, and long term being in precious metals. Day Trading, FOREX, and other “chasing my tail” methods fall flatter than a political speech after election day. I suspect horrible things in the economic community, like the Euro collapsing, and it just does not happen. I suspect a big drop in the US stocks, but it does not happen. I suspect so many things and nothing happens. Gurus from every ilk project wondrous results, and can only cite their history. Question is: what and when do I buy, and what and when do I sell? I can go short or long, buy, hold or sell. But I cannot feel good about anything, and am down over $300,000 … Help! What, where and when? I don’t care why anymore.
The above email is educational in two important ways. The first is that the writer wants me, or someone, to tell him what to buy and sell so he can reverse his losses and start making money. I am truly sorry, but in the world of trading (at least as I know it), this is not how it works. As I wrote in yesterday’s column, “I learned one, very important lesson – success depends on what I do …” Unfortunately, my friend, unless you can find a successful trader to give you his or her trades, or you hookup with a successful newsletter, broker, or trading service, you are on your own.
The second educational component of the email is the sentences I highlighted in bold print. It appears the writer is victim to two of the uglier aspects of the trading world, both of which I have railed against many times – the emphasis on bad news and “gurus” who promote their “successful” methodologies. Sadly, the writer seems to have formulated strategies around both.
My advice to the writer of the email is that he should stop trading, take a long step back, and reassess his skill set, mind set, and risk management parameters. Unless one has an unlimited source of capital, at some point, one has to cut his or her losses. Now, if one cannot stop, it is an addiction, and addictions are destructive.
My advice to anyone else who cares to listen is look beyond the daily jabber of the pundits, analysts, and newscasters, and be aware of those who promote themselves or their strategies. Although the data flows underneath the flying words, beware of the conclusions. Don’t become a victim. Be discerning. Find the quality out there and use it to your benefit. Be your own person.
Trade in the day; invest in your life …
