Thursday, July 14, 2011

The Daily Note - Being Right, Being Ready

I was told in no uncertain terms that wanting to be right is an American disease. I am somewhat of a cynic but that's the last thing I'd accuse Americans of. In fact I see them constantly questioning themselves even when they should not. What I see mostly is Americans losing themselves and that IS a disease. All because they tend not to know themselves anymore. They've forgotten their history, allowing many to rewrite it for the very reason I started this article about. They question themselves now in hindsight especially, and they've become a bit paralyzed, unable to take action because of it. In short, they are cannot be ready.

When citizens do not know their true history and culture, a people get lost and a country crumbles. So rather than suffering from a being right, I'd say Americans are suffering from not being ready.

I can say the same thing about traders. Being right is nice, of course, but not knowing the history of the stock you are trading you cannot be ready. The inability to be ready for a possible up/down swing can trap you and will turn a good trade into a bad one. There are days where the next action is determined not only by fear, news and mood but also by confusion. The increasingly obvious & deliberate creation of confusion.

Confusion creates chaos, chaos creates desire for normalcy, which many will demand especially when suffering quick and painful losses. The Fed. is talking as if they don't know what their next action will be which is an outright lie. But traders and news media react as if The Fed was just dumb. Nope, they're not dumb, they're foxes. Again, it's history which teaches us what is being created and the likely outcome and if you don't pay attention, you'll miss it. Traders will get what they ask for in the form or regulations upon regulations all designed to further limit the ability of the "retail" investor/trader to do business and increase the ability of those on the elite side to do better.

What are they doing? They are creating the need for another TARP/QE because their job to bring us to our knees is not yet done. The illusion is already part of the norm, which is the acceptance that the Fed. HAS to do something. (translation: do anything) But it was the illusion that a rescue was needed in the first place, which got America into this mess from the beginning. So, I ask you, do you care if I'm right or would you rather be ready?

Happy Trading, Living and Dancing

The Daily Pick - GDX

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