Some Thoughts 12/6

The systems remains in sell mode.

By using a system to time the market I become impartial, I’m not bullish nor bearish. If a buy signal is given I buy, if a sell signal is given I sell. It wasn’t always this way for me, and a lot of times I recall making very emotional investment decisions simply based on gut feel, not wanting to take a loss, not wanting to miss out on a big move etc….

I think it’s very important to separate emotion from investing or trading. When you have a methodology that allows you to make sound investment decisions, backed by a good record you can sleep much better at night, at least I know I do.

Not sure how many of you play poker, but I used to or I should say still do on a regular basis. One of the biggest leaks in my game and in fact it's probably a leak in a lot of peoples game is going on tilt. Going on tilt is when you lose your cool after getting out drawn on or taking a bad beat after you get the money in as a favorite. There is such a thing as investment tilt, and it happens when we miss a chance to take a profit too early, or when we refuse to sell and take a loss. A system allows you to bypass these issues and helps you keep your cool.

Small side note:
From time to time I will chime in with my own market commentary or bring an interesting article that I think we can really enjoy. If this is something you don’t want to read please ignore it and simply following the trade signals of the system. It’s just that the system does not give that many signals in a year so I would love to supplement that with some good articles/commentary when possible.