So, the world is going to hell in a hand basket tomorrow??? the Dow dropped 600 points, so its to be a "meltdown".....really?
I dont follow the indices locally or globally, but didn't the Dow have a big fall last week or something?( too lazy to look it up).......oh well, if folk want to poop themselves, then so be it
and....bitcoin and the other cryptocrap coins have turned turtle??...maybe you should be looking at these fellas....
They're called............Dollar coins...........i have a few, they're great. They dont rise much, which is a drag for a trader, but, they dont seem to fall, or lose value at a volatile rate, in fact they can be invested in various goods/products to produce/mine extra Dollar coin's.
They're universally exchangeable for goods and services everywhere, and usually at a remarkably constant value. In fact, its their resilience to volatility that impresses me, there is little need to wake up in the middle of the night to check their value on the inter webs.........(simply jiggle them in your pocket if you are concerned at their value/weighting)
Dollar coin's are exchangeable frigging everywhere !!! even at Upper Kumbucta West, where the pub will change a few for beer.....at, a relatively constant rate of exchange, the inter webs dont even have to work, Dollar coin's aren't reliant on an internet connection, or, a power supply !!......Its this universal acceptance that is the reason i like them, there is simply nowhere in this country, that you cannot use them, at an established value/rate.
The downside is they are heavy, so you can't carry too many, but, the beauty of them is you can swap them for what i would term "promissory" notes of values as high as 100 Dollar coins.....these are much more transportable, and, globally accepted and interchangeable with foreign currencies.
these "promissory" notes can be transported in a "wallet"......rarely digital, most usually leather. However, they are totally safe from electronic hacking or interference........the same cant be said however, for the deft fingers of a crafty woman !
Thinking back, I am glad I did as I learnt a great deal about the behaviour of the market this week. The ebbs and flows. Seemingly in concert. A noisy disjointed conducted orchestra but in the background it was actually perfectly coordinated and had rhythm. Hard to explain really.
Got rid of a few dogs. I learnt a lesson here as well. I seem to always lose money with these shells. I am not picking my entry correctly or exiting just before they take off losing patience too often. Need to do better. Sold some on a red day, some on a green day (learnt a lesson there too). Reduced some exposure into cash of existing shares (some on a red day, some on a green) about 25% of my portfolio. Now sitting on 50% cash. Happy to hold whats left at the moment until I have digested all these great lessons that have cost me money. Still determined to get it right and I think I can see some sunlight through this dense fog that is my foray into share trading. Although I have quite a journey still to feel the sun I think. I am loving it though. Another realisation that came to me this week is I have invested too much into a sector (small caps). I cannot devote enough time needed to properly analyse the situation commensurate with how much I have invested. This is due to a busy work and family life. Something has to give and at the moment it is money. I am in the business of giving it seems.
So after all that what am I going to do?
Firstly I am not going to invest in anymore very junior real speccie stuff until I can devote the time necessary to do it properly (working on that) . So keeping it small and keeping it quality. No more scatter gun approach. I will keep what I have left. as I am in (much reduced) profit with these ones. But I have done alot of the work on them and happy to see where they go. Even though two are very over sized in reality. One is my lovechild and the other my dirty little secret bastard child I feel. lol.
A few have alluded to investing in the leaders. Thats my plan too. I believe in battery stuff and gold basically. I have held and sold all the leaders and subsequently missed out on half the run to my disgust but again I have done the work on these and it's just a matter of catching up a few months. So now they have all come back I am thinking of spreading 25% of my cash on these for the long term (if they meet their plans). I will not jump in too soon, but soon.
One thing I definitely knew is I did not want to hold newly bought stocks over the weekend with one session left in NY. But that was a real test of my mettle with so many "bargains" around this morning. I was surprised at the strongish day actually. Maybe the leaders I was watching were shining through. Wise words are coming back to me from this thread actually. " look for the ones that drop the least not the most" sticks out. Thanks for that gem.
Good luck all. Enjoy your weekend. Oh and Freehold, I saw your "breaking loo" typo and googled it. There are a heap of quite funny exploding toilet videos on Youtube. Big thanks for that typo. A great distraction and laugh for the end of my week.
Cognitive dissonance . Yep me a major guilty factor of it thats for sure . The dictionary plays it something like this .
Cognitive dissonance, the mental conflict that occurs when beliefs or assumptions are contradicted by new information. The unease or tension that the conflict arouses in people is relieved by one of several defensive maneuvers: they reject, explain away, or avoid the new information; persuade themselves that no conflict really exists; reconcile the differences; or resort to any other defensive means of preserving stability or order in their conceptions of the world and of themselves. The concept was developed in the 1950s by American psychologist Leon Festinger and became a major point of discussion and research.
Like a chart many technical plays are in fact cognitive imo You have reason you have a method and tool to use that sometimes works ?
Its accurate to the moment depending where you look and at what time frame if you want move it around . Then when something happens out of the ordinary you really have stack up all you do and weigh it into being right .
The key point being we all want be right and is really hard being wrong when being right and why we need rules that we each have to motivate ourselves and constrain ourselves from the market. Some over last few weeks ago on the weekend threads the market was a bit crook and really they were right on the money sensing something out of the ordinary !
But anyway i have all sorts of trouble with my own cognitive dissonances thats for sure and we got mostly into cash after being knocked into the head so much by our indicators and seeing profits drop drastically over the last few weeks .
What to do now ? Well im a big fan of five grander strategy with minoil the leader at it but really it ties into some of freeholds thoughts with pilots and well you can paper trade or get a real feel for strategy with it imo
Lucky for us this week at the start we could actually look at the market live and some of us dont get that chance to do to get out or get in. We lost alot of gain but have capital still to go on with . And even got fully vested at the top of the market which was never a plan just went against the rules of play and got greedy . We were averaging up at the top !
Played all hell with the percentages thats for sure and the trouble and strife was full of i told you so's to reinforce it .
Holding one gold play one oiler and full of waffle and cognitive dissonance which i will need over come at some stage into entering the market at some point again but do i switch now from charts to fundamentals ?
Some of my thoughts are maiden dividend stocks or those returning to dividend maybe worth a look if they get beaten up badly and we get a bigger drop over all for awhile . And well you would have day trade now to enter i think unless you have some surety perhaps of a divie coming through sometime in the future ?
Or your just crazy like me and follow the witches and cauldrons for some sort of spell to cast on the market .
Notes . Posts around this period market in correction. End collation 9/8/18 weekend .
