You would not believe the amount of shit I took after posting this to the StockTwits stream a couple weeks back….
I recieved anonymous tweets, angry emails, and sky-written messages above my house lambasting me for suggesting a possible trade in Sears Holdings ($SHLD).
Real traders – – the cool ones at least – – would not touch Sears with a ten-foot science pole I was informed. I mean after all, it’s not Netflix ($NFLX), or Apple ($AAPL), or Amazon ($AMZN), or Twitter ($TWTR), Facebook ($FB) or Google ($GOOG). Those are serious “trading” stocks.
Didn’t I know that Sears was a dog?
Didn’t I know retail was dead, and that Sears was the deadest of the retail dead – – literally with zombie stores – – where the only activity is the occasional visit by a hoodie wearing Brian Sozzi, pursuing his fetish-like documentation of sloppy end caps and under-stocked shelves?
Didn’t I know that Sears was going to go the way of Circuit City, Borders, and Woolworths?
Not much however was said when I posted this to the streams less than two weeks later…
— Brian Lund (@bclund) Feb. 13 at 08:34 AM
Look, the point of this post is not to show how great I am – – though there is a pretty powerful argument that could be made for how great I am – – but to illustrate the point that you find opportunities where they present themselves, not where you think they should present themselves.
And if you are trading, which by definition means you are only using technicals to buy and sell, then whatever the narrative is for the company underlying the stock is irrelevant.
I haven’t bought anything in a Sears in years and regularly joke that if I need a bumper pool table in hurry, it’s the first place I will go. But none of that matters when sizing up a trading opportunity. Price, volume, and support and resistance levels have no relation to what Brian Sozzi, or anybody else for that matter, thinks about Sears.
Remind yourself that the point of trading is not to “be cool,” but to make money. Money can be made in all types of stocks, in all sorts of sectors, no matter if they are hot or not. And if by chance you happen to look cool while doing it, well then consider it a bonus and move on to the next trade.