>>> NYMEX March NG at $6.00 <<<
And the XNG is dropping further. We've had three consecutive weeks of incredible draws and the XNG has been falling. This is why I'm on the sidelines. We have a disconnect between commodity prices and energy stocks. In the event of a disconnect, it's prudent, in my opinion, to sit on the sidelines until the connection comes back into play.
High risk, high reward also means high risk, high losses if one is wrong.
Warren Buffet has just two rules.
1. Don't lose money.
2. Don't forget rule number one.
I used to think that those who were concerned with capital preservation were wimps. No guts, no glory. As I matured in my investing and thinking, I now think that chasing glory was a fool's game. I was very foolish to take more risk than needed to be taken. I found that being able to take risk emotionally didn't make me a better investor, just a foolish one.
It takes courage to do the right thing, especially when we can't control the final result. Most of us take control in our lives and therefore can claim quite a bit of success. We can't control what the market does and therein lies a lot of frustration. The market doesn't care about who we are or what we do. The market is only concerned with matching the supply and demand of buyers and sellers. When the sellers are in charge, it's time to step aside and let them have their time, unless we're playing on the short side. If one is wishing to go long, it's best to wait until the buyers show up. I don't see a lot of buying here.
dabum |
