Trade The Journey

Trade The Journey

Learning, Learning and Then More Learning!

Whoever thought that three years later, I’d still be reading, learning, and discovering. I think I might have a few hundred years ahead of me before I know for sure what will happen. By then, I’d have seen every pattern forming and movement in price to time the buy or sell.

I’d know for sure when the market’s opinion of the price would match the fundamentals. I’d just know, so I wouldn’t have to read everything two or three times. I’d be finished with discovering the erratic movements of the market and its meaning.

Company research you would be completed in a matter of minutes, no cross-checking. The profits would just start rolling in.

Profits– It seems quite likely in the beginning. Unlikely when you begin learning a couple of ideas. Somewhat unlikely when you understand the concepts. Somewhere after somewhat unlikely, you’ll start shifting towards somewhat likely with a new breadth of understanding.

As you can see the hardest part for me has been accepting the reality of it all. Learning and more learning won’t make you profitable. Only discovery can assist you in becoming profitable.

Discovery comes during reflection. When I reflect on the meaning of the movements of the price or the fundamentals, it helps me to discover “why.”

Know the results can help. But knowing the results and “why” it happened can help you to discover why it might happen again. While reading this week, I thought about the tariffs and their impact on the economy. History can help you to understand what is happening now.

In fact, before the Great Depression began, the United States begins to issue tariffs and enforce protectionist measures. Of course, these are not the total factors contributing to the Great Depression, but they are apart of the elements. Irrational Exuberance was in the air then and now.

I guess what I am trying to say is that reflection is an essential part of investing and saving. You must reflect on what is and isn’t working. Why a set of economic indicators like housing starts and automobiles can tell you about the economies health.

Forecasting. This is what it’s all about. Be focused and committed to understanding the “why” behind the results.

If you pick the right stock at the right time with enough momentum, your dreams could come true? Everyone hopes or imagines that they could pick the next Google and invest early.

But in the question I just asked are many aspects of investing. Did you spot them?

  • How do you gauge the momentum of a stock?
  • What is the right stock to pick?
  • When is the right time to purchase the stock?

Within those three questions are both fundamental and technical factors you have to consider. Not so easy now, is it? Add to that, the fact that the stock market is a collection of opinions. What you value and see as the value might not match what others think. In fact, you may be ahead of your time in what you see. Do you double down? Or play the situation with an air of caution.

This is what I mean by learning, discovering, and learning again. It’s like putting pieces of a puzzle together for me. What about you?

Thoughts? Opinions? Corrections?

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