Martial arts are amazing practices that allow the weak and feeble to knock out goliaths.
That goes for emotions too. They’re not your enemies; they’re just human nature, especially if you’re a kinesthetic. Fighting your emotions and feelings is like turning yourself off for the rest of your life.
Do you know what a daily 5% on your account feels like? It’s people smiling despite their dull, dead-end jobs; it’s when the sun comes out and shines on a dark and dreary day; it’s birds singing and butterflies coming to your balcony on the fifteenth floor of a densely populated high-rise residential district just to see how you’re doing…
Minus 5% brings you back from the clouds to the harsh reality… And it’s not even the money – I couldn’t care less about that. It’s all that hard work gone down the drain, and you only want to do what you’re good at.
But how do you do away with your emotions? Then why live at all? Why do anything if it doesn’t make you happy? The answer to that is simple and obvious. You don’t have to take it from me; a lot of really smart people say it’s time to sell and wait as soon as a recession is over. And when everybody’s screaming that we’re in a slump and the double bottom is somewhere halfway around the world, it’s just the right time to buy on margin. Mind you, this is not a call for action.
I don’t go on trading sprees because I realize that too much activity is not good for my weight category, and besides, I’m not planning on selling my dividend portfolio any time soon. I move 20% of my brokerage account around once in a while and I at times may even buy on margin.
I act on my emotions and the hype on trader forums. When everybody’s selling, they post large black candlesticks with a lower shadow – that’s when I buy in several takes. When I see white candlesticks, big volumes, chat-roomfuls of golden cows, talk of cars, girls, beach houses, and a level of resistance that is easily broken, I fix. And I do it before closing time, because everyone will be perfectly sober tomorrow, but today… well, everybody’s just a little boozed up.