Did I sleep in this morning? Hey wait, it’s light outside already. I’m usually up before the sun, before my wife, before my own son even on a school day. But here I was, alone in bed, eerily quiet. CRACKLE CRASH THUNDER LIGHTNING!!!!!!, HONEEEEE… ARE YOU AWAKE YET?????. I don’t know what was louder, the thunder & lightning or my wife’s voice. Luckily she had a cup of coffee in her hand for me…WAIT!! STOP!!”What’s going on here??? I’m the one who wakes up early in the morning. I’m the one who brings her coffee in the morning”I’m the BULL around here!!! But wait a second. WHY??? Can’t I be a Bear sometimes too??? It’s raining outside, I don’t HAVE TO GET UP EARLY…do I ? Why was I so befuddled that for a change I stayed in bed while my wife woke up early? So I ask her “what are you doing up so early this morning and this coffee is too hot, I don’t make it like this..”. She says “you inspired me, so I woke up early this morning, spent some quiet time with a cup of coffee and, oh by the way I drew this for you…” It was the picture that heads this column this morning. The bull & the bear, having a beer together.
Whew!!! Role reversal.
Which one are you, a Bear or a Bull?
Some people just can’t help themselves. They are always bullish. Reminds me of back in 2007 when my stocks started plummeting and I called the broker up and he said,”don’t worry about it, these things happen, it’s just a small corrective move. Thirty two thousand dollars and a year later I made a small corrective move with what little cash was left and decided to figure out what just happened and take my money out of that broker’s control. Does that mean I’m bearish now?
Which one are you? Bull or Bear?
Google has climbed $200 in 3 months with people predicting the pullback at $650 because it’s in a channel, at $700 because of the resistance from 5 years ago, at $750 because it’s never been that high, bears predicting a turn, every step of the way.
Which one are you?
As the chart above tells us, AAPL is down $65+ since hitting it’s all time high September 21st and every day I read a blog or an email or a post saying they expect AAPL to turn back bullish any second now. Asking questions like “what will it take to bring AAPL back to life? Will the iPhone 5 maps program will cause the company to fall and never recover? How can Netflix be going up and Apple be going down? Should we put all of our money into Samsung NOW???
Speaking of NFLX…
A week ago Sunday in Power Trader Live, we discussed that there was a Bollinger Band Squeeze in NFLX that was going to break one way or another any day now, then on Tuesday Citigroup upgraded NFLX to a Buy causing the stock to go up 11%. On Thursday some other analyst says he sees no reason for the upgrade causing the stock to stall. On Monday Morgan Stanley upgrades NFLX to buy causing the stock to surge another 10+%. Today Bank of America downgrades NFLX from buy to underweight.
Are you a BULL or a BEAR?
Or are you the person who has learned to drown out all of this noise and trade based on charts or do you still trade on what everybody else is doing? Do you read the charts, check your indicators (trader conditioning) make an intelligent trading plan with how much you can afford to risk in relation to how much profit is available? Do you practice back trading and studying chart patterns and candle formations and locations so you instantly recognize them on site? Can you change directions on a dime or on an analyst downgrade? Do you come to Power Trader Live to get someone else to pick your stocks for you?
I ask again, are you a Bull or a Bear or are you a bonafide trader, willing and able to accept risk and responsibility for your trades, for your life? Can your inner bull go out and have a cold beer with your inner bear?
Honestly now, did you ride AAPL & GOOG to the top and change directions when the charts said to? Did you make money on NFLX and then get caught with money on the table when the downgrade came?? Are you growing as a trader?
Jeremy Whaley said some things that I’ll never forget. The one that impacts my life the most is this right here…”Good traders use stops, Great traders trade to targets” Thank you for that Jeremy.
I have another saying that I like too, “if you want to enjoy a rose, you must respect the thorns.”
Here is a portrait of John Lennon my wife drew for me a few years ago. I include this because today he would have been 72 years old. Thirty two years of musical joy were snuffed out needlessly and senselessly. And it still hurts more than any trade that ever went against me. He said many things in his short life, the one I cherish the most is “Life is what happens to you while you’re busy making other plans.”
Bears & Bulls let’s raise a toast today, together!!! Let’s learn to live in harmony. After all…
“All you need is love.”