Rule# 1: Mr. Market is always right...
Are you one of the people who frequently forget this first and the most important rule?
If you are not sure and would like to find out, please take a quick self test below (tailored for CAPS members):
1. Do you find yourself 300+ points down on a red-thumb call you made, and you are still 100% sure it was an excellent call, but think the market has been just too irrational lately?
2. Do you have a lot of these calls?
3. Do you blame the market a lot for your bad calls and/or your score?
4. Are you one of the bloggers who post "This is the Top" kind of posts every 3-4 weeks (and you started with these posts back in March of 2009)?
5. Are you one of the people who get excited when they see these "Top" kind of posts and your coments on these posts usually go something like this: "Totally agree. +1 rec from me."?
6. Are you one of the people who shorted DTG at $5, then again at $10, then again at $20, but now, when you shorted it at $30, you are highly confident this will be the first time you'll make points on your DTG call?
If you answered YES to any of these questions, you need to hear Rule# 1 again:
MR. MARKET IS ALWAYS RIGHT.
Remember it. It's an important rule. Following this simple rule, even though it might seem hard at times, will definitely make you a happier person. Your score might improve too.
Try it. You have nothing to lose. It is a proven fact that the people who follow this rule divorce less often and are less likely to yell at strangers. Chose to be happy.
Next time, we'll cover the Rule# 2: DON'T FALL IN LOVE WITH YOUR CALL (even if it is an Ultra ETF).