Do Not Be a Monday Morning Quarterback Trader
As I previously posted a few days ago, I sold out of the market completely. I had the following securities: DOW, AMD, and X which were all up about 8-10%, and I sold. I stand by my decision and still think the market has a higher statistical chance of going down than up. All that being said, it can be painful to sell out and watch your stocks continue to go up. That’s exactly what happened.
10/28/11 – X (+11.57%), AMD (+7.22%), Dow Chemical (0.52%).
Of course most of the securities I sold were in X (US Steel).
But you know what? I am not mad/upset that I sold, if anything I’m proud. As I said in the previous post, you have to develop and stick to a trading pattern – and that’s exactly what I feel I did. I am still not in the market and do not plan on going long for a while. Could the market shoot up another 10% on Monday? Of course it could. Could the market drop 10% on Monday? Absolutely. I still believe there is a higher statistical chance of the market going down than up, therefore I am out of the market.
It’s important not to be a “Monday Morning Quarterback.” This expression was coined by quarterbacks who would watch films and say things like “I should have went right here instead of left” or other obvious statements with 20/20 hindsight. I suppose this expression is less meaningful now that you usually have quarterbacks who play Monday night football, but don’t overanalyze it.
Don’t dwell on the past, I don’t.
Filed under: Investing
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