lesson learned from 1994: be patient, hang on, keep low expectations
that was a watershed horrible nightmare year for me
I tried to do swing trades and day trades
account lost 50% in four days following the initial Easter94 Massacre, then 80% more in next two months... that painful added 80% loss was from the changed shortsighted tactics... yes, the math is correct, with account down 130% from the peak... I lost borrowed Mastercard money
12-18 months later, that account after the initial 50%, if left intact, would have been 100% higher than the high PRIOR to the Fed impact !!! ... EMC, Kulicke & Soffa, Adaptec, several smallcap software stocks, they all made new highs, and I was kicked out
be patient, dont attempt to beat the market, dont attempt to make it back... let the market heal itself... they coined a new phrase back then:
my stock got "Walmarted", which means my stock had to struggle thru one or two additional quarters so that its earnings could "catch up" to the high valuation and expected earnings growth that had yet to occur
memories are clear as a bell, just like MongMon Cramer
the sawtooth continued from April thru August in 1994
rallies were cut short every time until the Fed was done
I expect the same this year except for earlier rallying and recovering since Election Year in y2000
/ Jim Willie |
