I enjoy writing this column for many reasons, but one important reason is the interaction that can and does happen with you, the reader. I enjoy this even more when one of you does not agree with me, when one of you sees the topic differently than I do, as in the email below. I must say, though, when one of you does disagree with me, it goes down a lot better when you present your position with civility and thoughtfulness, as the good reader below has done.
I am sorry. I don’t see it that way. The market is the market and it does what it wants, and does not care what you think, half full-half empty. That is a hope strategy. It will behave as it wants or is manipulated by more money than we all have. God Bless …
The reader is responding to an article I wrote about my optimism and my belief that powerful forces are at work in the universe, forces we have yet to understand. Here is the excerpt that prompted the reader above to respond …
I write what I write because I believe that we all interject our consciousness into the universe – our thoughts and actions matter. I believe it is a simple matter of physics – if more folks see the glass as half full, then it will be so. As well, the opposite is true.
Despite my professed belief in the above, I must agree with the reader’s point. The market will do what it will, no matter how we feel about it individually, and he is correct, a “hope strategy” is not a strategy any successful trader or investor employs. Having said that, I would argue my belief is not false, necessarily. Not having proof that mass thought can influence market direction does not negate the possibility of it being true. In truth, though, the reader missed the larger and more important point – maintaining a positive attitude allows us to better see opportunity and to act more confidently when going after it. Here is what I wrote …
Still, I have one more reason for my optimism about the markets and the economy. To be a good investor/trader, one has to believe that every investment made, every trade executed will work. This is a simple matter of confidence. Confidence derives from many sources, but one source is the belief that our environment is healthy and progressing. If we think things are falling down around us, we will run for cover, not step into the open. If we believe that tomorrow will be worse than today, we will not see the ubiquitous opportunities surrounding us. Fear will replace confidence and our choices will reflect that. We will falter and hesitate, as opposed to boldly moving toward that thing we want. Our sense of self becomes tied to the cause of fear, and we lose sight of our purpose.
The reader makes another important point – big money can and does manipulate the market. One way is to use liquidity and bids to create price action. This “manipulation” creates a belief that a market is “hot,” which then attracts a mass of participants believing the market is hot, and then everyone is talking about that “hot” market, and the next thing you know … Although not the same as my “physics” point, it does prove one thing – our thoughts and actions do matter.
Trade in the day – Invest in your life …
