Blog number 1. Some basics.....
THIS BLOG IS INTENDED AS A RECORD OF MY THOUGHTS ONLY, TO BENEFIT MY CHILDREN.
1) Stock markets are difficult to navigate, lets not over complicate a complex issue.
2) It's a bull market and has been since Oct 2011, in my opinion.
This particular bull run has been difficult to stay seated on. At every turn we are told "the next leg lower" is around the corner. At some point that will be true, the real trick is timing. In the meantime, learn the rules and play the game.
The term "blue-sky" trading applies to being long stocks that trade at new highs, this allows wins to be garnered from market intelligence rather than trying to outsmart the professionals. Some call it momentum, I like to think reading a market correctly is as difficult as an other subject.
3) Bear markets are notoriously difficult to capture from start to finish. Don't try to predict it, let the market show you the way.
4) Yield Curve matters. (gives bear market signals religiously)
5) Capex matters (gives bull market signals religiously)
6) Rotating sectors matter, rotation within sectors matters. (trends can be see consistently)
7) Action matters over price. True bull markets never allow you the re-entry price you are looking for do not make the mistake of always having to buy cheaper than you sold.
8) Swimming against the tide is absolutely fine. (2007 and 2012)
9) Swimming with the tide is absolutely fine. (2012-)
10) Be prepared to lose money and learn. Be prepared to make money and know not how.
11) Learning happens everyday, no matter your age
12) Position size is the most important part of sleeping well. (ask Mum about the 2007 short position)
13) Instinct matters. Trust it, it's yours and you worked hard for it.
I will post links in future as this blog evolves.......
Queen takes Pawn
