Yesterday, I was working in my shop, minding my own business, when out-of-the-blue a tiny poodle and a huge black lab came trotting through. It was weird because my dogs did not bark, we rarely see other dogs, and the black lab had a six-foot rope trailing from his neck. The shock of two unfamiliar dogs tromping through my shop quickly transformed into a concern for the black lab with the rope dangling from its neck. Immediately, I tried to grab the rope, but it was clear the lab did not intend to get caught. Clearly, the dog was an escapee from a bad situation and it did not want to return to the state of “tied up.” It took off up the hill behind the house heading off into the uninhabited lands. My first thought was for the dog—will the rope get caught on something dooming him to a slow death? My second and immediate thought was, “I tried. There is nothing more I can do.” That thought, although not comforting, relieved me of any remorse I might have had for missing the opportunity to grab that rope and remove it. I honestly tried, but the flashing opportunity quickly slipped by.
An important point for all traders and investors to consider is that sometimes opportunity comes in a flash, while other times it appears and hangs around for a while. The former requires a ready state, a certain preparedness that allows you to grab it and profit from it (traders). The latter also requires a prepared state, but one can be more deliberate and thoughtful when seeing opportunity that stays put (investors). So, both require being prepared, which simply means having all your “ducks in a row” when opportunity appears, no matter when, how, or how suddenly.
Preparing for the “flash” of opportunity is a daunting task. It means mentally preparing for the unknown, that moment when opportunity might appear. At that moment, traders have to act quickly, proportionately, and with resolve. There can be no second-guessing and no hesitation. You see; you act. If you are prepared, accurate, and quick, you might very well bank some coin in your trading portfolio.
Preparing for the opportunity that arrives slowly and leaves late is less daunting, but it still requires an effort to train yourself to both see it and act on it with accuracy. Just because it takes its time does not mean you cannot screw it up. I still have “opportunities” sitting in my portfolio that required different choices when I acted upon them.
The points about being prepared is an important one, but my “event” yesterday points out an even larger point, one that will do more for you as a trader or investor than you might imagine.
Opportunity surrounds us. It comes at us from all directions. Swift or slow moving, you might catch opportunity and profit from it, or you might not, and here is the point—if you don’t, you have to be of a mind that allows you to “let it go.” You cannot have remorse, guilt, or any other negative emotion around the missed opportunity. I have learned this from my trading/investing experience, true, but, as well, out here, you cannot grieve for lost opportunity. I could not track a running dog uphill. I had to accept the fate of that black lab left my zone of opportunity as soon as it took off at a run up the hill. The markets, however, give signals that long and short opportunities are coming. Learn how to read those signals, and, most assuredly, be prepared to act on those opportunities.
Trade in the day; invest in your life …
