This morning, I was reading as usual, and the topic for today’s column popped into my head, as usual, and, as usual, the writing started to form in my head, but when I actually began tapping keys with my fingers, the topic for today seemed, well, not what would be most helpful at this time, at this juncture in the flow of the market, which is unusual. Normally, what I start is what I finish, but, hey, changing minds is allowed.
I was going to write about the rapidly rising commodity prices, tie that in with the QE “stuff,” and then tie that into the G20 meeting coming up with the hot topic there being the global currency issues. These are big issues, most certainly, and any one of them spells potential trouble for the market in the longer term, but, and as well, the actuality of any one of them wreaking havoc in the short term is pretty low, so …
As I have said recently, I believe the market is going up nearer term (3-6 months) across the board, despite the last few ambivalent sessions. Given this, I see opportunity across the board, as well. So, with this in mind, I thought rather than discuss potential problems down the road, I would put up a mini refresher course in the fundamentals of trading or investing, as everyone who is either or both should be in or getting in to the market.
- Both knowledge and cash are king (shared rule).
- The more you read about the market, the more you understand the market.
- Listen to the most reputable voices, but don’t neglect those with less of a platform.
- Take all analysis with a grain of salt.
- View the market from a psychological perspective, and remember, the market R us.
- Choose your strategies carefully.
- Trade your strategy, but be nimble if needed.
- Keep your mind, your eyes, and your ears open.
- Be mindful of your sources and their agendas.
- Discussing your ideas with others will help you understand if you are thinking correctly or if you are missing something.
- Don’t limit your learning resources, expand them.
- Protect your capital.
- Don’t be greedy. Take your profit and move on.
- Don’t be fearful. Fear breeds bad choices.
- Trade confidently. Pick your trade, execute it and end it surely.
Trade in the day; invest in your life …
