No. of Recommendations: 4
One has to let it sink in that the stock market is not an escalator to financial heaven, it's a bumpy rollercoaster. Stocks are more like cats than dogs, they do whatever they damn well want to do. It takes a special kind of personality to not let it stress you out because when it does, one does stupid mistakes. It's like successful racing skippers, they have 100% concentration and nerves of steel. Every distraction costs you. Yet the successful racing skippers have to watch everything and react accordingly. It sounds like a contradiction but somehow the successful racing skippers can separate the important from the fickle without any visible effort on their part.

Just to give an example, I've now had 12 months of successive market profits only to get busted in November, TTD with great earnings is down, BEAT with weak earnings is down, MNST with weak guidances is making new all time highs. Daily moves are close to random. It seems that successful traders rely on three and six month charts which iron out a lot of the daily potholes.

I've made good money on penny stocks I've traded with discipline, following (most of the time) two simple rules: buy some when it's X% down, sell some when it's Y% up. It works like a charm with stocks that go nowhere, fails miserably with falling knives and misses opportunities with rocketing stocks. Months could go by without a trade. Then there would be a flurry of trades when volatility went crazy. You surf the waves when there are waves.

Denny Schlesinger
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