The 2022 Trading season has been brutal but I have to wonder if we have at least achieved some sort of equilibrium. Yesterday I sold some TBs that I had just bought - and now…today, I have once again added them back. Maybe the worst is past or maybe the worst has passed just for now. Regardless, you can’t get discouraged nor even negative. Remember these immortal words:
Somehow you just have to weave your way through the debris of the markets ups and downs and stay positive - just like that famous little girl. You know…this one who in matter of fact might just live at your house:
One day as the sun was going down parents of a small girl watched from their patio as the girl walked across the yard carrying a baseball bat and a ball. Once the girl reached her spot - she turned to her parents and yelled: I’m the world’s greatest hitter! She then tossed the ball in the air - waited for its descent, and with a mighty swing she missed the ball. “Strike One” she yelled. Picking up the ball she again tossed it in the air and swung as hard as she could. Once again the ball dropped to the ground. “Strike Two” she yelled. She paused a moment, taking a long look at the ball and the bat. She turned once again to her parents and yelled, “I’m the worlds greatest hitter!”. Again she tossed the ball high in the air - watched as it peaked and then started to fall. The little girl hesitated a moment - then swung for all she was worth - but she missed again and the ball fell to the ground. “Strike Three” she yelled.
The little girl’s shoulders slumped and she stared down at the ball for a few moments. Then she turned to her parents with a big grin on her face and yelled: I’m the world’s greatest Pitcher!
Just about now some of us High Growth Heroes are just like that little girl in that we have all struck out so far this year. Perhaps we are discouraged, downcast…maybe even a little depressed…Meh. Life happens and the markets will go where they may. But unless you let it - the market hasn’t beaten you - it’s just momentarily taken the lead on your portfolio. And only after gifting incredible returns to us over the last several years. So stay the course and stay positive understanding that the only way out is through.
All we have to do is hunker down - play rope-a-dope and let the market punch itself out.
So stay the course and stay positive understanding that the only way out is through.
I remembered an old line of mine and then remembered the opening post on my board quotes Thoreau:
I learned this, at least, by my experiment: that if one advances
confidently in the direction of his dreams, and endeavors to live
the life which he has imagined, he will meet with a success unexpected
in common hours.
here is my version:
The lights are out, I sit here waiting
Tomorrow, a new dawn, a new day.
I learn to live, not fight, with life
For she will treat me as she may.
Dang…you are one thoughtful, well-rounded, poetic human being. Other than all that you are probably a pretty good guy.
Zoro:
Trading Blocks are like playing an easy game of pitch and catch in the front yard: Don’t hold the ball - or the trading blocks - chunk em back when they are within the profit window you set and then let the market ease them on back to you.
Guys…(and fair ladies)…Here is the bottom line thing: You are the QB of your portfolio. Thats static win or lose; however, have you ever noticed that the best QBs are always confident, under control, and seemingly poised under pressure? They do their route check-offs: Ok there’s one…there’s two…ashhh there’s my target. Systematically. Now that doesn’t mean they are not enthusiastic or excited for the game - its just that they know what they are doing and have tremendous confidence in their ability to get it done.
We can all have the same demeanor; IF…we are willing to put in the time and follow a few rules:
How many times have you heard the Fool say: Don’t invest more then you can afford to lose? Well…then don’t.
Know your strengths and weaknesses as an investor. Then all you have to do is work on the strengths or the weaknesses. As a rule - I don’t work on my weaknesses, because they are weaknesses for a reason. I prefer to perfect strengths and look to other sources to cover my weaknesses.
Develop your very own investing game plan: tweak it as needed but stick to it - that is…unless its a stupid plan and/or you are a simpleton and lose everything. I would then think about creating a different plan.
Know the companies you invest in by reading reports and listening to CCs; which is to say, try to obtain a firm grasp and understanding between poo and shinola.
Check your plan daily - the market is providing opportunity somewhere.
Stick to your plan.
And after doing all that you will still lose money when the market decides to take a bite out of our butts. Thats life…and opportunity. So…in times of trouble:
Hunker Down - Eyes to the Front - control your emotions - Mark your targets when they come.