You may recognise the title of todays post. It’s a quote from Warren Buffett. I’m sure most of you who read this blog will know who he is. If you don’t then shame on you and you can get up to speed here.
With the markets so volatile of late and being so low on funds it would be an easy time to give up and quit trading. Believe me I’ve contemplated it on more than one occasion but I am not a quitter. I want to see this through and I will see this through. If other people can make a profit doing this then so can I.
So I guess you could say over the past few weeks I have been fearful, so does this mean that I should now be greedy and buying everything that seems to be undervalued? The truth is I have no idea. I would like to say yes I should be greedy and buy, buy, buy but that has gotten me into a mess in the past and I don’t want to repeat the same mistakes. Therefore I am sticking to my strategy. The idea of the momentum divergence strategy is that the rate at which a price is falling is slowing down before it reverses and starts to climb again. (Much like a car does before it turns around and drives in the opposite direction). So for now I’m sticking with my strategy and hoping that the current retracemnet is over and not the start of a new down trend.
I would like to thank “E” for the e-mail he sent me detailing how his trading is going. I think we are all in the same boat here. We are all trying to make it to the winners post where we can call ourselves successful “Traders”, and I think we all have to help each other to separate the wheat from the chaff.  If anyone has a strategy (or strategies) that is working for them please feel free to e-mail it across to me and I will add it too the site so we can share it with others. I know that a strategy that works for one will not necessarily work for another but for people like me who are still finding their feet any help as to how to develop a strategy will always be greatly appreciated.
My Sky Deutschland position stopped out today for a £5 loss. Most of my other positions also dropped on the day. It looks like Alan was right about Alcatel lucent. I’m going to give it a little longer to see if it still comes good, I’m probably lining myself up for another fall but we’ll see what happens.
Anyway that’s all for today.
Until next time.
“May the Markets be with you”
June 7, 2010 by Harry
Category: blog