The problem with being in cash is the constant desire to invest for quick gains. The easiest way to fuck yourself, when trying to be conservative, is to make exceptions for “quick trades” for “easy gains.”
Here I am contemplating putting money to work and I find myself going up the risk ladder, gravitating towards highly speculative stocks for the sake of making a “quick trade.” Truth be told, it’s wishful thinking and counterintuitive to what I am really trying to accomplish. For example: I am in cash because I think the market is risky (obviously). In the past, I’ve went against my conservative bend in order to make “quick trades” only to get stuck in the back of a jam sandwich, long asshole stocks, heading for massive losses.
I am writing this so I can see the flaw in my current mindset, on the blog, for the world to see.
SHAME ON ME.
Do you want to know what stock is at the very top of my buy list?
Because DECK is springing higher and I am thinking heavily shorted stocks like FSLR and GMCR will be “the next ones to go.” Do you know how retarded that sounds?
Look, maybe FSLR is a buy here, after getting the shit kicked out of it for the past few weeks. However, if I invested in it and the stock started to head lower again, I would likely throw myself into a lit fireplace, due to breaking my rules.
What are said rules?
Don’t invest in industries that suck dick. At the moment, I have a select few industries that I feel are to be avoided, at all costs: coal, solar, natural gas. Everything else is fair game.
Bottom line: often times, when in search for the fast money, large, slow, losses are realized instead. My advice to you and my gambling alter-ego is to sit tight and follow the rules.