Thursday, July 22, 2010

The Daily Note -The Right Side

When most people buy into a certain direction of the market is when the market decides to turn. Hence my saying "When everyone joins the parade, it's time to become a spectator". As day traders however, we are not supposed to care about which side the market is on as long as we are on the right side.

What becomes difficult for most of us is the truth about our humanity. We are, after all, social beings and like to do things together. Which also means we get influenced by each other for exactly that reason. In our social make up is the desire to be included and what better way than to reach consensus and therefore a social bond; which can mean that we try to prove ourselves in order to be accepted.

When we see people have fun, we want to partake in the festivity and look to create it for ourselves or we may follow it blindly oft forgetting to check within ourselves to see if the activity justifies the investment. So we can blind ourselves to the possibility that the act we are now entering may not be one that we would normally choose. Forgetting to check with ourselves may help us to lose sight of our person and our goal. It is where we become most vulnerable but also where we tend to jump with abandon. However when reality hits, it is we who may have been abandoned by the parade that kept rolling to the next thrill leaving us behind stripped of our
dignity if not also our wealth.

Being on the right side means staying true to your own style and not chase what looks good at the moment. Not all trades can be taken, followed nor be right. Keeping to our own rules keeps us safe to be available for connections with a right partner, the right trade and trader with whom we can continue to dance. Knowing also that the parade will return to town testing yet again our conviction.

Happy Trading, Living and Dancing

The Daily Pick - AAPL

©DayTrading with Anni 2010 All Rights Reserved

1 comment:

dsbaker4au said...

Well said Anni. Amazing what one can do, or NOT do, when one turns off everything and listens to sweet beautiful silence.