I’ve been hearing a lot of frustration from investors having difficulty in this market, especially with stocks like Mellanox Technologies (MLNX). When asked for perspective this is what I tell them:

 

There's little wrong with stocks right now: it's the environment. A market like this one does not care how good a stock’s story is. Seeing good stocks get hit is mentally tough. That’s why we always consult a chart. It will tell you when a fundamentally sound stock is not getting treated like one by the market.

 

Part of being a good investor is being able to recognize the times where opportunities to make money exist, and avoiding times when they don’t. But we never tune out. For example, right now I am invested small. Until I get real traction, I will stay small. But those that quit when times get tough will never be able to act when the time is finally right. Remember, the mental highs are almost never as severe as the mental lows. And each bad day is just one day closer to the next bull market.

 

Finally, these types of markets are tough for investors at all levels. But we never give up! Communicating regularly with the MarketSmith community can help because you will quickly realize that all of us are getting kicked around.

 

That said, we know the opportunity in the stock market is unmatched and can be life changing. The key now is to have our equity intact for when the environment improves. It’s tough, but we know that's the way it is.

 

Best Returns,

 

Scott O'Neil

President, MarketSmith Incorporated

Follow Scott O'Neil at Twitter.com/WScottOneil