The "Trend is Your Friend" but Trends END.

  • Posted by
  • on February 21st, 2007

This bull market is ripping away day after day and is making people like me look smart.

It’s not supposed to be easy. it is not easy. I am not smarter because some of my stocks have tripled and quadrupled. I am standing aside and letting things happen, but the bull is making things happen.

Markets like this DO NOT last. I just try and be responsible with profits and do less timing.

When things are this good, do not fbecome a …..”Buy and Forget to Sell Investor“.

It is a great post by Vitaly. Here is my fave piece:

Lately I’ve been getting this powerful feeling that everything I touch turns to gold. Every time I buy a stock it goes up. Did I finally figure out the stock market game? Did I find a secret to Will Rogers’ advice? Buy stocks that go up, and if they don’t go up, don’t buy them.

No, I didn’t get much smarter, and my stock picking skills haven’t improved that much over the last year. I was simply a willing participant in the latest (cyclical) bull market. A bull market makes you feel smarter than you are (sorry) the same way a bear market makes you feel dumber than you are. Feeling smart makes you do the opposite of what you should be doing. The euphoria of the golden touch is a dangerous thing because it can make you (and me) careless. We forget about risk since we haven’t seen it in a while, and instead only focus on our rewards. You have to actively make yourself aware of the four letter word – RISK!

It’s not that I am bearish or selling everything. I am looking to add some stocks. I just think you need to think daily about risk and what could happen when things turn. They will.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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