Rodney, you talk about that 25 year chart and the 87' crash (small correction???) with such non-chalance. Were you invested in the market during the 87' crash.
I have heard a lot of people on SI talk about becoming day traders in lieu of their day jobs. I even know a chiropractor who is considering leaving his noble profession to become a day trader.
Making 600% is quite commendable, congratulations. But as a daytrader you are not producing any goods our services that propels the very economy that you depend on to propel your stocks to even greater heights.
What if everyone just quit their job and lived off their investments - do you think this thing could last. Why would anybody need to work if they could just throw their money in an S&P index fund and do a little day trading to earn a living.
I will say to you that this very thing is happening to a large extent across America. Everyone is fully invested in the bull, even to the point of borrowing on home loans and credit cards to invest and make 600% a year.
I followed the Motley Fool for a while, till I questioned the rhetoric spouted by a couple of wet behind the ears green children. Sure investing is fun, the market only goes up, buy and hold. That's fine if you have a 15+ yr. time horizon. Investing in 1965 wasn't fun, took you 15 years to get back to even. Everyone talks buy and hold, but in the age of instant gratification when the time comes will they walk the walk - I think not!
There are plenty of things to get excited about. S&P Price/book 2.5 times the 87' peak, currency devaluations in Asia, Strong dollar killing multinational dow company profits (the Dow IS the market and the rest will follow the leader), Disturbances in Isreal.
600% is a fat profit to write home about, greed drives man to hold onto that profit to the bitter end, always wanting more, till the time comes where it just vanishes in thin air.
Good luck and good trading,
Bob |
