Meaningless Action/Thoughts for 2010...

Today's last minute sell off was just as meaningless as the last few positive days that we've had. Low volume moves mean nothing. While one may argue that today's volume was slightly higher than the other days, it is still below average. Today's selling may have been nothing more than retail and a few prop desk traders cashing in before the new year begins. Of course, this is not a 100% guarantee. Still, I believe that 2010 will be another strong year for the market. We may have a few bumps early on, but I am still comfortable enough to know that if there are real opportunities, I will definitely take advantage of them. In any case, now is the time to kick back, relax and reminisce about the challenges and rewards of 2009. It is also the time to make plans and set goals for 2010. One of my goals is to take the Series 65 and start an investment advisory firm. "Surviving" the 2008 decline made me realize how dedicated and passionate I am about trading and researching the financial markets. More importantly, it made me realize that there is room for improvement in the money management sector. I've heard so many horror stories from family and friends on their misfortune in the markets, especially in 2008. Little do they realize that they could have avoided their mishap had they had control of their own funds or at least had a competent money manager overseeing their capital. While you may be thinking that yes, most of the top managers lost money in 2008, that is still a bad excuse. Most of these managers are using outdated strategies that simply do not have an edge in today's market environment. Most of them are so far gone that they are uncomfortable of even changing their strategies. I know money managers that simply just threw their hands up, closed up shop and opened up restaurants and gelato shops. Over what? A single difficult year? Excuse me, a difficult year that also offered double to triple digit returns for those who caught the micro-cap oil stock move during the spring and summer months? I will admit it is sometimes hard to sit on the side and do nothing for months on end. Unfortunately for traders, we often feel compelled to trade every single day, no matter what the market conditions or trend. That is a bad habit that even I struggle with to this day. But I have tried to improve upon it. As traders, we sometimes fail to realize that we are at a great advantage. We can liquidate positions in seconds and avoid large losses. And yet, if we do not learn how to sit patiently and wait for the right time and opportunity, our advantage is lost. Every year, I improve upon my trading and strategy. This year will not be any different. Even small improvements and refinement make a difference. With that said, good luck to everyone in the new year. Have a fun and safe New Years Eve and a Happy New Year!