Mid Week Pit Stop #15

A Long Path Ahead

I think the title says it all. In fact, it has summed up the essence of everything in this blog so far. The market has a long way to go before it reaches the final bust process; I have a long way to go before I am close to the achievements of Jesse Livermore; This blog has a long way to go (I certainly hope so). In a bid to prepare for the long path ahead, sometimes you have to pause for a while and think. Cliche as it sounds, but when men try to speed things up in life, more often than not, men forget how to stop and think for a second.

When I look back at recent posts, I realise that I have lost my focus. All the facts, figures, fuzzy logic, economic theories and so on are pointless if they aren't strung together with a main focus. This is probably a very big reason why I'm so far away from the level of Jesse Livermore. lol

The idea of the post on the possible demise of USA is to introduce a mentality.

1. The market does not follow a upward trend forever. This is actually in line with an old midweek post on "mentalities in the market". Sadly, as much as I emphasize on this mentality, I myself was stuck with the mentality that the market will keep going down.

I have made the mistake of neglecting the long side of the market just like most people with the short side of the market.

Again I'm not an economics-oriented type of person. I firmly believe that there is only an indirect relationship between the stock market and the economy. In the long run, the stock market is supposed to reflect the economy though.

2. I'm trying to open up your investment/trading mentality to the concept of asset classes. I talk about a period of time where everyone will hate stocks just like what happen during the great depression time. Stocks shouldn't be the only area that you look at for investment. I talk about gold. I talk about shorting which implies put futures since they are trying to curb short selling nowadays. The idea is you have to be open to these options for a period of time where the stock market will not look pretty.

Short post as it seems but it carries a lot with it. If you do take a pause and think through what you read on my post or learn on your own so far, I believe you will understand how I feel and the purpose of this post.


Resting is to prepare for a longer journey ahead.