Why You Should Keep Your Ego Out Of The Way When You Trade


The investment world is filled with big personalities and big egos. You become even more aware of this narcissism after something drastic happens like a market correction or a full-blown bear market.

This is when the permabears hop up on their soapbox and tell everyone that they were “right,” and they saw this coming.

Even if they didn’t see it coming, over time they tell themselves that they did and begin to believe their own lies. Months and years down the road, they begin telling people that they were one of the only ones that provided a “warning.”

Just look at the financial crisis as an example. Very few people actually saw it coming, much less profited from it. Yet today you’ll find thousands of people who claim that they warned of the looming housing crisis.

Headlines like “the guy who predicted the last financial crisis issues new warning,” really annoy me. And it’s not because I’m jealous or resentful that I didn’t see the housing crisis coming. I didn’t. In fact, I was thousands of miles away from Wall Street enjoying Argentina, Patagonia, and the Galapagos Islands. At that time, I was barely paying attention to what was happening on Wall Street.

The AD Line Comes Through Once Again…

That said, I will weigh in on my opinion of the market and particular stocks. After all, it’s what I’m paid to do. In fact, for the past couple of weeks, I’ve been warning readers that one of my favorite indicators – the AD Line – was flashing red.

In fact, as you can see in the chart below, it flashed twice.

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