$APOL - How to Pet the Right Stocks and Think like a CaveMan
Looking at my last say 2 weeks of trading, (for those who are regular readers, I guess I'm the only regular reader) but if you are and you're keeping it a secret shame on you! Basically, patience pays is really what I mean by this cave man relation to trading stocks. The caveman will follow the buffalo, the cave man will sleep with the buffalo, eat with the buffalo and understand the buffalo's behaviors not because the caveman wants to marry the buffalo, it is because the caveman wants to take the buffalo home to cavewoman.
If CaveMan saw a buffalo and ran after the buffalo there are 3 possible results:
1) Buffalo wins
2) CaveMan Wins
3) Both Lose
In trading, option 1 will happen, option 2 will happen, but option 3 never occurs, the market never loses, the market doesn't care about you attempt to buy 100 shares of $AAPL. The market will how ever EAT YOU alive when you don't know what you are doing.
But if CaveMan watches the buffalo for a few hours, a day or two or even watches the entire buffalo family for weeks, Caveman will have a better understanding of the buffalo's behaviors, weaknesses and also can call his CaveMan boys (who all have the same name, CaveMen) and take this buffalo down.
Now, lets apply this to trading stocks, how are you gonna wake up at say 9:15 am, brush, shower, shave and so on and try to be ready by 9:30 to trade? You gotta be CaveMan, you gotta know what you are getting into and why, Buffalo can easily wipe out CaveMan with its horns. What if CaveMan saw a buffalo for the first time in his life and tried to pet it? You think Buffalo will roll over and accept that? NAH! Same with a stock, you can't just start petting stocks, you gotta know what the stock is up to, why is it doing what its doing and then only you can pet the stock.
You only gotta pet the right stocks to win in this game. Out of 10 Buffalos 1 Buffalo may stand out as the easy one, so just be patient, relax and pet that buffalo when you want to, not when you need to.
It's all about knowing what you are getting yourself into. I will come back and update my Buffalo of the Day tonight!
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