Markets Come at You Fast…Do Not Chase Them

I have this thing I do on Stocktwits where I share the investments/trades I make with/for my daughter Rachel in a Robinhood account. Just putting my daughter’s name on an investment idea makes me slow down and ask ‘is this something Rachel could explain to my father in law’.

Nobody else seems to be taking their time these days. There is a lot of chasing right now.

Our President has continued to tweet about the stock market doing well as the proxy for his success. He has been in office six months and is taking credit for the stock market having a great year.

Here is the thing – with the exception of Russia, EVERY single country ETF in the world is positive in 2017 with an average return of 19%.

Risk is on absolutely everywhere.

In fact, confidence has relatively waned in the US. The US dollar is at 11 month lows. The world is selling US dollars and buying emerging market stocks, Greek bonds, Bitcoin and Ethereum.

It is a great time to remember that the markets are opportunity machines and you do not have to watch any news, catch every move or understand every sector and narrative.

In fact, most of the times, the markets come back to you and bad things happen to you when you chase markets and stocks.

This weekend I mentioned on the blog I was buying back some Ethereum as a mini panic was at hand. The digital currencies were coming back to me.

Well, today I was selling some as it rallied from $140 lows to $240.

Of course people are asking me why I sold if I was thinking about it as a public venture capital investment and not a trader.

Fair question.

Here is the answer – I am always willing to let an investment become a trade and try not to let a trade become an investment.

If a market or stock gives you gains in two days you would have been happy with in two years, it’s ok to change your timeframe!

PS – If you think you are too late to the Bitcoin trend, here is Josh Brown just today buying his first Bitcoin. A great read.

People ask me every day where I buy Bitcoin. I use Coinbase for all my small purchases. If you want to get started use this link and we both can get $10.

And finally…never give up! I love this:

Also published on Medium.