I've written multiple blogs about my pocket pads and how incessantly I jot down great insights and sustaining concepts whenever and however they cross my path. It's been a daily and profitable habit for decades.
Below is a link to a more descriptive past blog about the process, but here I'll simply share some of my favorite jottings from the past couple of years.
Becoming a dedicated investor is like building a 200 mph supercar in your garage piece by piece. Most of the time, it might sit there under a car cover depreciating while it waits for its moment in the sun. But then that one special day arrives when the cover comes off. You are a 200 mph hero with big horsepower — God it feels great! Similarly, you buy Microsoft at $20 or Amazon at $100 and it feels great. That doesn't happen very often, but it's worth the preparation.
We live in a digital age. These are internet times. Think fast, act decisively or perish! These days, procrastination is even more so a profit killer.
The best billionaire investors have "oh, crap!" moments. Expect it for yourself as well. Take it in stride and don't beat yourself up.
When I meet people that don't seem to have a discernible passion— one they wear on their sleeve — I usually move on. I gravitate to people with big passions that are smarter than myself.
NOTE: A brief pivot. Often, these points are a result of myself paraphrasing another commentator and adapting it to my own investing perspective. I apologize up front for not presenting full and proper credit for every insight herein.
As an investor, humble is good. No, actually humility is essential. My parents were simple folks. Our family crest was a crossed broom and shovel to remind us of that fact always. Whenever I forget it, the markets manage to remind me.
A consummate entertainer with a rhinestone piano once said, "Too much of a good thing is wonderful." My take on this — too much of a strong uptrend is a great thing. Enjoy the ride.
The world's greatest invention has been noise-cancelling headphones. Similarly, my charts have been the greatest media-cancelling eye glasses I could have hoped for. They cancel out the noise.
So many look back at the past and get all nostalgic. I look at the past and ask what lessons does it yield.
Focus on the process, not the outcome or the dollars you expect to make. A consistent process will lead to profits. Anything else is like a tail wagging a dog.
What's overrated today may not seem so in a year. Revisiting previous analysis with a fresh open mind often leads to newborn opportunities. Never say never. Look at it again.
It's equally as important for investors to know their own tendencies and to appreciate their true "investors selves" as it is for them to understand where their tendencies don't wish to go and exactly what kind of "investor selves" they are not capable of being. In other words, know thyself. The market is an expensive place to look for therapy.
Lists of "Best Stocks" or "Best ETFs" or "Best Analysts" are merely suggestions. I find it absurd when I see awards for the "Best Pinot Noir" wine. It may be worthy of my consideration, but I'll make up my own mind, thank you. ETFs and stocks are the same. I'll be the judge of what is "best" for my portfolio.
In closing, I once more ask you to reconsider my paraphrasing of Richard Rogers:
"I don't believe that investors do something extraordinary spontaneously. I believe it is the result of years of observational living, of diligent study, reading and dedicated practice. Finally, after cultivating the proper prerequisites, their experience, their personality and very temperament is just so and at that particular moment, all these come together and the investors are able to profitably express themselves."
Trade well; trade with discipline!
- Gatis Roze, MBA, CMT
- Author, "Tensile Trading: The 10 Essential Stages of Stock Market Mastery" (Wiley, 2016)
- Presenter of the best-selling "Tensile Trading" DVD seminar
- Presenter of the "How to Master Your Asset Allocation Profile DVD" seminar
- Developer of the Tensile Trading ChartPack for StockCharts members