bill,
i posted this on the lb thread...wanted to pass it on, i know very little, but just in case it helps a single person : )
some thoughts on this market...
i bought my first penny in the early '90's and battled my way into full-time trading a few years ago...then came the huge bubble...and then the tank...
i wondered if we would ever have a season like fall/winter of '99/2000...i promised myself during these 3 years in between that i'd take full advantage if we ever did, because it is so rare and if you are careful and wise, you can make enough money to truly do what you want to do...and it's a beautiful thing..sooooo,
wayne and lance used to pound the table about paying off debts w/ profits...i agree, imho, i'd rather have no mortgage or car payment or credit card bills and only 5k or 25k or 50k or whatever in the trading account..then to keep it all in there, have 200-500k in there and have that chance of screwing something up and losing much and still having those bills and debt...i'm not trying to tell anyone what to do w/ their money, nor do i have that right...just simply saying, especially for maybe those of you who are out there lurking, that if you are finding your accounts growing big-time...don't hesitate to take some out for paying down debt - if you have it, and some away for taxes etc...in this market, you can do that..that way, when the market is tougher, if you're not experienced enough to continue to make profits, you don't lose it all - you've paid down your obligations so your monthly expenses are so small you can weather the rainy seasons...
personally, i take out a percentage of profits at the end of each month from my accounts, no matter what - even though i have full confidence that i can do more w/ it in there than anywhere else, experience has taught me to be wise...diversification is good..
another thought..
there is a lot of money left on the table on many trades, because of the "pigs can fly" season we are in...i love it...
it's a good problem to have: learning to let stocks run wild after having made thousands of trades between 2000 - 2003 where we were just happy to get out on an ut before nite or someone would destroy it...
i hope this continues for a long time and we can take full advantage...
having said that, the market has a way of humbling and reducing an ego or pride down to ashes at times...many times, it's right when all the masses are finally deciding to chase stocks way up and hold long term...
everyone has a trading style that hopefully works for them..but regardless, it is important to remember that while it is tough to change the mindset to let the runners run again, it can be equally tough if the market starts trapping again at some point, to take profits and move on...does that make sense?
it's like by the time you finally change your rules or style or outlook, the market will then flip back 180 degrees..
trust me, i hope this lasts for a long time...or at least something between this and the horrific market we had recently...sprint and i used to say "free" shares was a myth..you know, if you think it's at the top, then sell it all..if not, then why are u selling...but in this market, obviously free shares can be smart, cause you never know when u hit an agis, or cypt, or azaa, or xyny, or mxdy, or whatever else...
so let's be smart and trade well...and manage money properly!
