Trajectories ~ when it comes to trading/investment

Posted by admin on January 31, 2010 under Articles | Be the First to Comment

Another good article contributed by Franklin

Trajectories ~ when it comes to trading/investment

No one, nothing can predict outcomes accurately and consistently. Not to mention timing the outcomes. Trajectories tend to limit thoughts and actions, implyng that there is only a ‘certain path’ to follow. Trajectories occur after the development of a dominant nature (e.g. 911, gold rush, asset bubbles), creating a ‘WOW’ effect, followed by certain “followership”.

Stocks trading can be at times paradoxical. Some are so adamant at their ‘forecasts’, that they close out diverging signs. Some try to follow each and every swing, big or small. Some simply wait and wait. While I reckon there are no ‘sure win’ strategy, trying to put the ‘cart before the horse’ for too many times can also be suicidal.

Conflicting? The point I am trying to address is that given today’s influential influx of information and knowledge, plus the “rate’ of CHANGE, perhaps we should attempt to ‘anticipate’ only the big swings and ride out the smaller ones. Over a longer period of time, transaction costs can become the tipping point in the P/L.

Entry basis and exit plans are ‘MUST’! But not at each and every turn of a stone. Yes, ‘fast money’ is possible, but not everyone is up to it. In addition, the frequency and difficulty in achieving that vary.

Whether it’s bull, bear or consolidation, only time will tell, and unfortunately, investment decisions are made now, only to be measured in the future.

Franklin
RMAO
9.20am ~ 26 Jan 2010
FRANKLIN’S TRADING RECORDS & RANDOM THOUGHTS