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Learning2vest

03/22/04 11:56 AM

#63948 RE: Danny Detail #63934

Danny, not surprising to learn that the pros use an emerging trends approach in their research, but it is does add additional credibility. One thing that has taken a long time to sink into my thick skull is that market trends have a BIG influence on individual equity valuations regardless of what else might be happening. (I know, "Duh!" LOL!) My emotions make me want to buy as soon as the research is complete. Things usually work out over the longer term, but the short term can get mighty bumpy with that kind of buying approach.

Been working on learning some TA and using that to do a better job with the buy/sell timing. Tough to sit on the sidelines after my fact finding and analysis makes me want to buy something(and to ride the swings after I do!). Investing in emerging trends takes a good seat belt because you gotta be ready to ride an endless cycle of "Whoopee!" and "Yikes!" moves like we have been seeing with IDCC over the past few years. Those kinds of emotional swings HAVE to be a handicap most individual investors struggle to manage every day. Bet the pros have a clearly defined set of rules they follow in their trading, and that those decisions get made without much emotional distraction.