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One of the basic rules that I have used over the years is very simple. When I
trade, I don't read the paper, listen to the news, care about reports, or look
for any other input then what is offered on the screen as price. The sports
page and funnies I do read and I will do the crossword puzzle. From the start
of the market, there has never been a news event that has changed the direction
of the market for more then a day or two. Go back with the Dow to the beginning
and put in all the wars, deaths, etc. and see if they really changed anything.
The market is going to do, what it is going to do, no matter what is going on in
the world. Individual issues have a different reaction. Gosh look at how all
that bad news a couple of weeks ago effected HWP. The Market first climbs a
wall of worry and then falls when all the good news comes out. It is not what
is happening that counts, it is the perception of what will happen that effects
the markets and stocks. How good are the experts? How many earnings estimates
are right? How many recommended stocks do what they are supposed to do?
Everyone seeks their own comfort level. If they trade using a news letter and
lose, it was the news letter's fault. If they made money, boy was I smart.
Designation of blame has been the secret to success in almost every
environment. Trading, on your own, may be the only exception. For inexperienced
traders saying you were wrong is very difficult and the first thing they do is
try to defend there decision as money streams out of their account. Like the
song says," there is a time to hold'em and a time to fold'em" Have a good week
end. Ira.
Phil Lane wrote:
> Looks like I'm not unsubscribed yet. The torrent of mumbo-jumbo continues
> unabated. I still maintain that the market predicts the news. For example,
> the Nasdaq starts breaking out over the past several days, on accelerating
> volume, and now the economic report appears favorable. Or maybe it was bad,
> but the market goes up anyway.
>
> Good thing I didn't read this scary note about inflation and flush all my nd
> contracts a few minutes ago. But I might have! I do best in isolation.
> Thanks to all who have written privately.
> Best rgds
> Phil
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