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Here the market goes again: down this morning after dropping 1.5% yesterday on big volume. Isn't it sobering when the market takes back four weeks’ worth of gains in one or two days? Just as we were starting to feel confident in the strength of this rally, we are reminded that we are still at the mercy of this global, news-oriented environment, where the stock market hangs on to every word and usually overreacts up or down. Needless to say, this is not the action we associate with a robust Bull Market.
This is why our stock entry points and average costs on positions are so important. In the MarketSmith Webinars, I have used the term "laser focus" for your entry points and mentioned the need for care in how you pyramid into stocks. Discipline plays a big role here. Even I started getting in deep last week, because the majority of my decisions were correct and my stocks were working well. However I always kept a close eye on my average cost.
That is why I was able to handle this morning, only having to close marginal positions and keeping all of my low-cost stock allotments. I am paying the price on the few improper purchases made last week, but I’m able to hang in there on most of the purchases I made correctly, where I still have profit cushions.
Nobody likes action like yesterday or this morning, but on the bright side, it’s a great reminder to be disciplined in your purchases.
Follow Scott O'Neil at Twitter.com/WScottOneil
Your honesty is refreshing Scott and well appreciated. Too many liars & carnys in this game claiming that somehow they called it, saw it, traded it or knew it all along...
Scott-you confirm my emotions yesterday. I made a plan for each positions based on the last three days action and viewed in the context of market action and the stock action through the rally.
I remembered your Dad saying in one of the advanced workshops that when one sees stock action like we did yesterday, wait to the end of the week to see weekly price/ vol action if your position in holdings permit it.
We now must ask whether the character of the market has chanaged or the weak holders are reacting in unison.
Todays action so far confirms my skeptical view yesterday. i stand ready to correct my mistakes with a hair trigger but glad I held on to most to see what the end of the quarter brings.
Bill O'Neil has said, "I will sell anything any time," in a 2001 Chicago Advanced Investment workshop.
Buying them right is of major importance and a cost basis a smidge under the standard pivot points helps keep confidence as they sell off. Knowing whether to book small percentage gains or hold for a potential bigger gain is a decision we all face. I learned early on that losing a position of a great stock is a major disappointment as not many truly great ones come around. Some of the best ones appear to be holding up-at least for now, but even a moderate correction can bring them down, too. Enjoy reading all of your posts. Thanks Scott for the Webinars. The MarketSmith charts and data are exceptional tools. Best to all of you.
Why do we have to be continually spammed by people selling their services in the MarketSmith forums? the forums are suffering and we have no unsubscribe option.
Perhaps MS could create a separate section that doesn't really show up anywhere else.
Scott, Thank you as always! As "I" said above, your honestyy is so greatly appreciated. I feel very similarly to you as regards the current market pullback. My biggest mistakes during the current rally have been made in chasing at my entry point--no "laser focus". I have been able to hold 2/3 of those, but I feel that is more "luck" than skill lately, which ALWAYS makes me re-evaluate my positions.
Thanks again for the blogs and the webinars!
wow look at that another spammed comment....
spartian8k9:: what spamming problem are you discussing? I've seen some clearly commercial service type posts, but don't see it as a huge problem. Have others shared this concern?
For me it is the regular market commentary that we seem to be getting more of. almost on a daily basis. I see it as an advert for their own services more than any other value. my guess is that the ability to tweet their own "blogs" from marketsmith is what draws them. so, if you look at those blog posts, there's a fair group of people marking them as one stars.
The blog area offers a nice way to post a chart associated with a ticker and have a discussion about it. I'm not sure why there are separate forums. Why wouldn't people want to do the same in the forums?
Over on twitter they complain about the multi level marketing, mlm, posts and much of these daily commentaries have that same feel to them. it might look good to their friends and people who follow pay for their services, but to the rest of us it just plain noise and makes them look bad.
I see it as spam because it comes into the general forums/blogs, aka our inbox, and we can't unsubscribe.
Personally, I like to hear from a variety of views, so I'm not really against outsiders, people who use other methods of investing, or even people selling their services, posting on the forums/blogs. I just don't want to "subscribe" to their newsletter/adverts because I happen to participate in the blogs/forums.
I have to agree with spartian here on all points. Too many, "bloggers" who add nothing to the community. Worse, they are dangerous to new traders who might believe that the snake oil they are selling is actually curative to their trading ills.
hey Scott thanks for the note.
I wouldn't expect this to change long standing policy with ibd/ms about how the forums are run, so I can understand your position to a degree...
I might have to get a twitter account, so that I can spam everyone too!
Spartian, After your post, I looked into some of the blogs and have to agree with you. They had fallen off my radar as I just stopped reading certain posts as they seemed to enjoy "tooting their own horn", but I didn't perceive it as a bother or clear commercialism. After considering your point, I tend to be in agreement and do find it as noise or clutter. Scott, your foillow up and comments are also appreciated. I tend to only read and respond to blogs that, fiarly striclty, adhere to CANSLIM principles. This is especially true for any technical discussions and chart-sharing (an excellent service, BTW), as I don't want to read about Bollinger Bands, MACDs, etc... being superimposed on the more straight-forward approach developed by WON and evolving with the input of Scott and the O'Neild tading tesam and folks at IBD/MS. Brad
To all: I apologize for the multiple duplicates--I think I need to get a new mouse, or PC, as my "clicks" don't seem to be registering consistently. Frustrating. Sorry. Brad
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