Emotion Make The Market Swing

Good morning, I hope you feel good today.  Well what do you think?  Do you try and guess everyday what will happen in the Market? If you don't then you should give it a try.

My proprietary indicators tell me that although it would be easy for the Market to roll over and head downwards right now, a decent rally today would provide a sense of urgency to invest all that money on the sidelines.  In turn, that would provide the fuel for a continuation of the rally next week.  Add to that a martini, some good music, and a wave of good luck, and I could talk myself into imagining the Market totally overbought but 500 points higher.

My implication is that I'm having a lot of fun trying to guess what will happen next.  Yes,  it is exciting for me to anticipate the Market and how each stock in my portfolio will go.  When I'm right, I feel a little closer to understanding the Market, and making money feels good.  When I'm wrong, I still feel a little closer to understanding, but then stay out of my way because losing money is no fun.

Even with all my experience as a Market Professional, I still get emotion swings. Here's a thought:  "it is the Market that swings because of the emotions of its players."  Now that's better, my simple answer to why the Market goes up and down.

People awake in the morning and if they feel good, they buy, if they feel bad, they sell.  The rest is just supply and demand looking for balance. Computer program trading was invented to take the emotion out of the game, but I'm not a computer.  "I am not an animal, I am a human being."  My fun is guessing and playing the Market; my fun is feeling good in the morning; my fun is being right; and most of all, my fun is making money.  Have profitable day.

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"Wide diversification is only required when investors do not understand what they are doing."
"Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years."
*-- Warren Buffett - Strategies Of World's Greatest Investor

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