Mostly: Classical

[Frank Pembleton]

Trading Resolutions: Part I

"See, when you drive home today, you've got a big windshield on the front of your car. And you've got a little bitty rearview mirror. And the reason the windshield is so large and the rearview mirror is so small is because what's happened in your past is not near as important as what's in your future. Where you're going is much more important than where you've been." - Joel Olsteen

I always have been a sucker for setting new year resolutions. After all, I'm very much a goal oriented person as I've explained in previous years.

Beyond my trading and investing goals, I decided to take a different approach this year. In 2007, my resolution is simply "to do 5 things this year that I've never done and that I think I would really enjoy doing." While not commonly advocated, I've learned that among your own goals in both life and career, it is also important to set "fun" goals for yourself to make sure you don't forget the important things in life and to stay motivated. Too many times we set goals that only require sacrifice and hard-work, and while both of those things are required ingredients for success, living a successful life is not all work and no play. If success requires only that, then what's the point? As the saying goes, you'll never regret not having worked more on your death bed. As such, as I looked back over 2006 in the past couple of weeks, I became disappointed in myself that I didn't take advantage of some "fun" opportunities. So, my personal resolution is to make sure that doesn't happen in 2007. In setting your own goals this year, make sure to add some "fun" stuff in your life.

Over the break, I did take time to review the answers I received as part of the 2007 membership survey. In that survey, I asked members to answer the following question: "If you had to make a New Year's resolution for yourself in trading or investing, what would it be?" Here are some of the trading resolutions I received:

Trade less. Exercise more patience.

Be patient, buy right and buy big.

Be sure, be not afraid.

Don't sell out on fear at the bottom of corrections.

Only make pre-planned trades; do not chase the "stock of the day"

Learn everything I can from others who know far more than me. Try to apply what I have learned in a more consistent way. With more discipline.

Investigate before you invest.

Don't fight the tape.

I am paid to wait for the best opportunities.

Work harder, trade less, research more, be patient.

Keep your feet on the ground and expections reasonable.

Sell when all the news too good and buy when all the news too bad.

Stop listening to experts.

The market will always be there and so will good opportunities.

Plan the trade and stick to the trading plan.

Keep educating yourself. It never stops.

You do not have to be "in" the market all of the time.

Do more homework.

Create lists of stocks that will perform well when any type of news is released and constantly evaluate those lists.

Devote more time.

To learn more from those that succeed.

Pick my trades more carefully.

Don't let one or two day counter-trends influence decisions that were made with a medium term goal.

Maintain focus and a positive mindset.

Let my trades go at the end of the day and enjoy life to its fullest.

Do not trade on emotion.

Be willing to be in cash.

Cut losses more quickly.

Observe my thinking/mind during the trading day.

Make a plan and follow the plan. Otherwise, do nothing.

Stick with one approach.

Trade more to my strengths.

Remember "it's money and not my ego."

Take small profits if nervous.

Always have a pre-planned exit point on bad trades.

Step back from the noise and spot the longer term trends.
Those are some pretty good resolutions. I'll have more for you tomorrow and Friday.

http://www.thekirkreport.com/2007/01/new_years_resol.html