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From: Robert
A. Christy
Editor/Publisher, ‘The Intelligent Trader’
http://www.intelligent-trader.com
http://www.christyinvestments.com
Date:
September 30, 2008
This weeks’ ‘Long and Short of It’
Since last week’s missive, we have experienced some of the highest highs
and the lowest lows. That was yesterday morning between the opening bell
and an unsettling lunch.
Most of what I was going to opine about has been fed into the shredder.
Unlike other crashes, this one is being brought to you courtesy of the
US Government. Our head in the sand politicians are to blame. They set
the stage and the folks on Wall Street took it to an extreme. There is
plenty of blame to go around, but to simply blame Wall Street is tacitly
false.
Here’s where I think we are:
1. We are closer to the bottom than we are to the top.
2. We have shed just about all of the excesses out of
the system.
3. What’s left are a lot of great companies trading at
respectable valuations. Most of these are not in the financial industry.
4. Now that the media is glomming onto the subject of
“what to do about your retirement accounts” and offering up strategies
on what to do in a bear market, this thing is pretty much ready to turn.
5. Our indicators will lead us out of the wilderness.
6. The people who panic now are the ones who will look
back in 6-12 months and wonder how they could have been so stupid.
Some thoughts on trading:
1. Our over-riding goal is to NOT trade often
2. Our over-riding goal is to TRADE WELL
3. Some trades work out as expected
4. Some trades work out better than expected
5. Some trades simply won’t work
6. To be successful, you must have a trading plan and it must be in
writing
7. Losses happen
8. Taking the first loss is always the best loss
9. A small loss is better than a catastrophic loss
10. Risk management
a. How will I handle the trade?
b. The most important facet of the trade is the entry
c. Never enter a trade until you first determine how much risk you want
to take
d. What is your plan for exiting the trade? This includes a profitable
exit and a losing exit.
e. The biggest mistakes I see people make are entering too soon and
exiting too soon.
The bottom line is this – I would rather lose a small amount on a
perfectly executed trade than to make a fortune by violating my trading
rules. Every time I violate my own rules, I am setting the stage for an
event that will not only wipe out my profits, but may wipe out my
trading capital as well. People who violate their trading rules are
GUARANTEEING TOTAL FAILURE.
FOREX
I hope that this market calamity has everyone’s attention. If it
doesn’t, shame on you. The equity markets have dealt us some interesting
circumstances and the panic is widespread and uncertain. One thing I do
know is this – the market will come back on its own time table and not
ours.
Another thing I know is this – every crisis presents an opportunity and
I fervently believe that the next huge opportunity lies in the forex or
foreign exchange market.
Our stock accounts have taken it on the chin but our forex accounts have
weathered the storm and are more than a little profitable.
I don’t jump up and down about a lot of things – but I am here and now.
If you do nothing else over the next three months, do at least this –
take a few minutes and familiarize yourself with forex or the foreign
exchange markets. You can start by visiting
http://www.christyinvestments.com/forex.htm.
The other is this - I have just started a new blog and will begin
posting to it this week. Here’s the address:
http://forex-coach.blogspot.com/
Some of the first topics will be:
1. What is FOREX or FX?
2. Why should I trade FOREX?
3. What is the advantage of adding FOREX to my portfolio?
4. What are the benefits of FOREX?
5. My 5 Step Process for trading FOREX
6. Should I trade FOREX myself or have someone do it for me?
7. Introducing Crabapple Capital Group, LLC
8. CCG’s new managed FOREX account
9. CCG’s new FOREX trading service
10. CCG’s new mentorship training program
The investing world has changed over the past week. What was no longer
is and it’s going to take a while to sort out who exactly is left
standing and what kind of stroke they will have in the marketplace.
As a said last week, this crisis will pass just like all the others.
We’re beaten up not broken. I just wish some of the people who created
this mess would feel at least a little of the pain.
That’s about it for now. Let me here from you if you have any questions.
Robert Christy
The Intelligent Trader
P.S. Are you interested in trading along side me? There are 2 ways to do
so. The first way is through my stock trading service, The Intelligent
Trader. For just $249 you get a front row seat and the chance to get up
close and personal with the market. Just click to learn more. The other
way is through my dynamic forex trading service. If you have an interest
in trading and/or learning about forex, just drop me a note. I am in the
process of finalizing a new mentoring service geared to just trading the
forex markets. In your email, please let me know when would the best
time to get in touch with you.
P.S.S. Please fee free to forward this to your peers, friends and
associates you think would benefit from its contents. They will thank
you for it - and so will I!
The Intelligent Trader's ‘Long and Short of It’ is a free OPT-IN
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Robert Christy is a professional stock trader, money manager, author and
speaker. Mr. Christy is the President CEO of Christy Investment Group,
Ltd., a registered investment advisory firm. He is also the Managing
Partner and Portfolio Manager of Crabapple Capital Group, LLC and the
editor/publisher of The Intelligent Trader, a subscription based
long/short trading service. At the time of publication, Mr. Christy may
from time to time write about stocks in which he, Christy Investment
Group Ltd, Crabapple Capital Group, LLC or The Intelligent Trader has a
position. In such cases, appropriate disclosure is made. Under no
circumstances does the information in this column represent a specific
recommendation to buy or sell stocks. Mr. Christy appreciates your
feedback and invites you to send it to
rac@intelligent-trader.com.
Robert Christy
The Intelligent Trader
c/o The Christy Investment Group
P.O. Box 625
Alpharetta, GA 30009-0625
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© Copyright 2008 Robert A. Christy
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