One of my very dear friends used to tell me that his father was a very fortunate man. He would tell me the story of how his father would always find opportunities to profit from. He would then add that he thinks there is no way that he can make in a life time what his father made in one year. Indeed, his father was a very wealthy man - the wealthiest man I personally knew (He passed away about 8 years ago). He was also an amazing and influential person whom I had the pleasure of knowing. Let's go back to my friend's comments about his dad. 1. His father would always find opportunities to profit from. The truth is that his dad lost money numerous times on certain businesses. In fact, on balance, he had been involved with a greater number of failed businesses than successful ones. But, he still made tons of money overall. The secret to his success was (according to him) made of the following: Guts - No fear to put money into a business. Taking a concept or an idea and making it a reality. Faith, Drive and Determination - Believing that you can succeed and working hard to get there. Risk management - Knowing when to jump ship if conditions dictate to do so. Choosing the right road - This was the most important thing according to him. Many times we find ourselves at the cross-roads, and we have to choose which way we are going to go. Some people call it luck. My friend called it deductive reasoning (logic). Making the right turn obviously pays great dividends. At my old age, I often look back and try to think about those cross-roads and analyze the choices I have made. More importantly, I try to study the elements that made one way more attractive than the others. My friend's dad told me that when he was 38, he had the best year of his life - He made all the right turns. As a result, he created serious wealth. According to him, all he had to do after that year was to maintain his fortune. So how does this relate to trading you may ask. Well, on 5/28/01 I posted a link to an article http://www.elitetrader.com/vb/showthread.php?s=&postid=9283#post9283. The article can be found here: http://thestreet.netscape.com/comment/streetsidechat/1289155.html. This article has been my most valuable trading tool this year and helped me do very well in the market. Here is a quote from the end of the article: This article helped me get over my weakness of trying to buy the bottom. This was the most significant element in choosing a road this year. It helped me make the right turns. So, the turning point of my trading career was to choose the right turn. Please read this article carefully, it is still relevant today! Also, it will be great if you can contribute your own story even if you feel that it is silly. Someone may find it valuable and use it as an element to make the right turn. Bill PS - Sorry for the long post.
impressive article! these markets are a good argument for day trading instead of any buy and hold stuff - don't you think? i guess the bears will stay for a pretty long time.