| | Tommy had a dad who was a great investor and when Tommy turned 14, his dad let
him open his own account. The market at that time was rather directionless.
Tommy's family didn't believe in margin accounts so Tommy could only go long.
It was tough on our young investor who was very eager to reap the rewards of capitalism.
But he patiently sat out a down market and almost a month of sideways action.
Then the market inched up ever so slightly. His favorite stock BUBA was up 2 points.
Tommy asked his dad if he could get into the market. His dad smiled and
with a very wise twinkle in his eye said, not yet, the market was probably just resetting
indicators and that they would know in a day or two.
Dejected Tommy walked out of his dad's home office. But two days later, Tommy
was back. "Well, dad, are we going up."
His dad responded, "We're up, a couple of points, but we are just at resistance. The end of day tomorrow
will tell us more." Tommy knew his dad was probably right. After all, he was very wise.
At the end of the next day, Tommy was back, "Dad, is the market up, can I get in."
His dad conceded that BUBA was up a few more points, but added that the big boys were probably
just manipulating the market. He told Tommy that Tommy's favorite stock was 10% away from a new
high, another day or two would tell more.
Tommy was ever so patient. Two days later he was back. His dad told him that
their stock was just a dollar away from setting a new high. If it did, it would be clear
sailing. Tomorrow would be the day.
Tommy couldn't wait to get home from school the next day and ask about the market.
"Dad, did BUBA set a new high".
"No, Tommy, BUBA hit resistance and dropped 5 points today and it looks like it is going down
now. You'll have to wait.
"But dad, we watched it climb 14 points and now we don't have a thing to show for it. Nothin."
"That's true, Son, but we didn't lose any money either. Better safe than sorry."
Tommy retorted, "When's the last time you made money in the market?"
His dad, replied, "About a year ago, but that's not what is important here."
Tommy slammed the door and walked out of his dad's home office.
This story is fiction (and probably bad fiction at that) and if the characters in this story resemble any real people, living or dead, it is purely coincidental. Iowaman is not Tommy. Flack is not his dad. |
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