Thursday, January 6, 2011

Chain Reactions of Uncertainty

I don't know what came over me.  There I was long as can be watching the equity grow then all of a sudden something happened that I did not like.  My expectations were high and I refused to settle for less, forgetting what I wrote about recently.

The first idea was, to remember that your thoughts can and at times will be wrong and this is a pure given.  Finally I made a mistake and this set off a chain reaction to throw every stock I had overboard and now I am sitting net short?

I guess I am not that crazy?  But, this goes entirely against the rules that I am trying to solidify in my mind.  Why in the hell would I jump in front of this freight train?  All I know is I did oblige to an important rule, start with a small initial position and if it works add to it.  I hope to add, and if the market does not do what I expect it to do I will admit the mistake and say "Next".

Or, maybe the answer is this:

"Each of us is possessed with the common weakness of wanting to have an interest in every jackpot, and we certainly would like to play every hand at bridge.  It is this human frailty which we all possess in some degree that becomes the investor’s and speculator’s greatest enemy and will eventually, if not safeguarded, bring about his downfall."


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