Back in the old days, when I was young and delusional, I tried to time all tops and bottoms. Being gifted with the ability to pick winners, I felt invincible, as if I could do no wrong. Much to my chagrin, I learned, via staggering capital losses, that no matter how smart I was, the market would rape me—every once in awhile. Believe me, it took a long time for me to understand— and accept— the fact that the market does not dance to my jungle drums. As a point in fact, the market is King Kong and the rest of us are just bananas.
It’s liberating, it truly is. Give into the fact that you are a peanut and Goldman Ballsacks is an elephant.
So, whenever I start to feel cocky, whenever I start roaming my office dressed in a white robe and sandals, burning incense for the Gods, I do the opposite of what I really want to do. For example: for the past 2 weeks, while the market climbed, I felt as if my positions were all going through the roof and into the ever so ominous VAN ALLEN BELT aka a place where NO HUMAN has ever traveled. Instead of buying more, I sold and raised cash. Praise the snake God for that.
I digress.
Here is the lesson, if I might be so bold:
[youtube:http://www.youtube.com/watch?v=AJR62vsAg-0 616 500]After this leg down is complete, I will begin allocating my 40% cash position.
Top pick: [[ENTR]]