How To Get What You Want From The Stock Market

everything-you-want

Why are you here?  What do you want?

These are the questions I ask myself in order to find out how to give you the most value.

I would like to think you read my blog for a few reasons.

Maybe, like me, you are a market addict and enjoy reading anything and everything related to trading and investing?

Perhaps you like the fact that you can ask me ANY question you want about the markets, trading, or investing and know you’ll get a thoughtful and honest response.  (Don’t believe me?  Give it a try at Brian@TheLundLoop).

And maybe, just maybe, you are here for my rapier wit?  But probably not.

I hope these are at least some of the reasons you’re here, but ultimately I know you are here for one thing–to be more informed about the markets so you can be a better trader and investor.

And since we’re both adults, let’s just be honest about what that really means…..

You are here to make money.  As much money as you can.

That’s it, isn’t it?

Sure, like me you are probably fascinated by all aspects of the market, but also like me, this is not an academic endeavor.  As cool as it is to talk about and discuss the market, none of that matters unless it can make you cold hard cash.

Are you making money in the markets now?  If you are, could you be making more?

I love making money in the market, for a number of reasons.

First off, it allows me to do things for my family, friends, and loved ones.

I will never forget when I was in my early 20’s, struggling to build my first company, and trading on the side.  One day I caught a fantastic run in a stock called Pre-Paid Legal, which made me more money in a week than I made in a whole month in my business.  I still remember the symbol…PPD.

More awesome than making that money though was what I could do with it.

My dad died when I was 20, a loss that hit my family, and especially my mother, exceptionally hard.  After a number of years of grieving, her friends convinced her to take a trip with them to Europe, a trip she had always wanted to take with my father.  She saved up for six months in order to afford it, and out of necessity planned to be on a tight daily budget, watching every dollar she spent.

That is a crappy way to see Europe.  She deserved better.  So the night before she left I went over to her house to wish her bon voyage, and as I hugged her goodbye, I pressed a thousand dollars into her hand.

“Have a great time,” I said.  “Take this money.  It is for you.  I want you to relax, enjoy the trip, and treat yourself to some nice things.  You deserve it.  I love you.”

I can’t tell you how good that felt.  That I could, in some small way, make my mom’s life a little easier.  A little better.  Like all my friends at that time I was broke, and if it wasn’t for the money I made in the market, I wouldn’t have been able to do that for her.

Who is special in your life?  What would you like to do for them financially if you could?

As I got older I began to understand that being able to extract money from the market on a regular basis is great, but it’s what that money gives you that is the real prize.

Freedom.

Freedom from bosses.  From long commutes.  Annoying co-workers, clients, and employees.  Freedom to set your own schedule.  Live wherever you want.  Freedom to live your life in the way you see fit and to have self-determination.

When my first child was born I was a full-time trader, and I was able to be present, to experience every moment of her precious childhood, because I had the freedom to do it.

What would you do with complete freedom?  How would you spend the time that freedom gives you?

I hope that the content, insights, and accessibility I provide, in some small way, help you to get what you want from the market—because I know how great it is when you have it. But I can only do so much.

The number one question I get asked by readers is, “Do you mentor people and/or teach them how to trade?”  I wish I could.

Unfortunately, with two young kids, a writing career, and my own trading, I just don’t have the bandwidth to teach others.  And though I am always willing to help you out in any way I can when it comes to the market, I don’t think my personality lends itself to teaching.

That is why I have compiled a list of Quality Trading Services.

I am not affiliated with any of these services in the sense that I don’t get any compensation for mentioning them.  They are just services I personally have used or currently use, or traders whom I have interacted with for a long time and respect their skills and integrity.

Most offer a free trial, so check them out and start getting what you want from the stock market.

R.I.P. The StockTwits Blog Network: 5 Ways It Changed My Life

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Note: Last week, those of us who have been a part of the StockTwits Blog Network for the last few years were informed that our blogs were being sun-setted.  I don’t know, sun-setted, is that even a word?

Common wisdom says that we will know the days on which our lives will change.  Sadie Hawkins dance.  The Prom.  First date with someone outside of our religion.  First time we kiss with love in our hearts.  Wedding day.  Birth of our first child.  Blah, blah, blah, you get the point.

But that is bullshit.  The real days when your life does a full 180 degree pivot don’t come with a warning or a societally wrapped bow.  They hit you like a tacit 2×4 to the head and you don’t fully understand the impact until long after the fact.

Such a day happened to me back in June of 2011.  A mister Pearlman – make that Doctor Pearlman – called me up out of the blue to say, “Bubba, I like the stuff that you are writing. How would you like to join the StockTwits Blog Network?”

Me?  Join the network that had such luminaries as Josh Brown, Tadas Viskanta, Greg Harmon, Eddy Elfenbein, and that awesome neo-maxi-zoom-dweebie James Altucher?  What was going on in the good Dr. Phil’s head?  Baselining crack seemed to be the only explanation.

Let’s be frank.  I am a lazy, lazy man.  But I know that.  And I know that the only way to overcome my lazy gene is to overpromise.  You see, my overpromise gene can put my lazy gene in a full-nelson type headlock, and if necessary, snap its reluctant neck.

So, reluctantly, and with a voice cracking like that of Peter Brady, I said, “Sh-sh-shur.  I’ll join the team.”  And thus the course of my life was forever altered.

Let’s Get It On – When I first started blogging on the StockTwits Blog Network, forever to be referred to in future literature as “The Hammer of The God Thor Blog Network,” a funny thing happened….I got challenged.  A lot.

No longer could I just spout shit.  People – smart fucking people – weighed in with their counter-points.  And their point-counter-points.  And even their double super point-counter-points.

Their points made me think.  Made me re-check my thesis, my hypothesis, and my conclusions.  This, my friends, is a good thing.  Challenges temper your beliefs.  Refine them and make them complete.

Give Me The Crystal Method – After writing for a few weeks on the blog network, a strange sensation began to take hold.  I began to understand what I thought.  Sounds funny doesn’t it?  Everybody already knows what they think, right?

But do you really?

Here’s my challenge.  Take a few minutes.  Select a couple of topics and decide what you think about them. Now, spend a month writing about them.  I will bet you dollars to doughnuts that by the end of the month, you will forever spell doughnuts either “d-o-n-u-t-s” or “d-o-u-g-h-n-u-t-s.”

Point is, writing things down, on a regular basis, has a wonderful, crystalizing effect on your thought process.

The Broads Love a Guy Who Writes – Not too long after my stuff started getting published on StockTwits, I literally had to go incognito everywhere I went.

Chicks love guys that blog about inside baseball financial shit.  They can’t get enough of us.

Rock stars, British actors in independent films, and financial bloggers – I dare you to tell the three apart.

(Perhaps I am exaggerating a bit on this one, as after four years my mother still can’t seem to bookmark my blog, my wife says, “yeah, great, so where is the goddamn money?” and my daughter says, “can’t anyone just write a blog?”  Touché’).

The Old Man In The Cave – Previous to beginning my blog I was a bit of an insular character.  That is to say, I did not like venturing out and meeting people.  But in the last four years, thanks mostly to the opportunities brought about by my writing, I have met some of the greatest minds in finance.

Howard Lindzon, Dr. Phil, Joshy, Eddy, Tadas, G-to-the-Harmon, Todd Sullivan, Brian Shannon, Jeff Carter, Derek Hernquist, Joe Fahmy, that bourbon cherry making chartist JC Parets, Sean McLaughlin — I have met them all, and so many more.

The only two I have yet to meet in the flesh are the infamous Dinosaur Trader, and Barry Ritholtz, whom I suspect is a just a Long Island accented hologram anyway.

Show Me The Money – And perhaps the most outlandish, incomprehensible, and irrational side effect of being on the StockTwits Blog Network is that other platforms have actually asked me to write for them….

FOR MONEY!!!!!!!

If it were not for StockTwits, there is no way that I would now be writing for AOL’s Daily Finance, About.com, Yahoo Finance, and most recently, TD Ameritrade’s The Ticker Tape.

Being on the StockTwits Blog Network literally began an unlikely, but growing, second career for me.

And with that, we come full circle.  Thanks to the various platforms that StockTwits has opened up for me, I no longer need to write about the markets and finance on this blog.  Just as the ST Network is sun-setting, so too is this blog…at least in terms of finance and the stock market.

In the coming weeks you will see a transition and a re-branding of this blog.  Instead of talking about stocks, I am going to be talking about more personal issues.

My life.  My kids. That dipshit at Starbucks.  My hopes.  Fears.  Insecurities, Triumphs.  Failures.  And the universal struggle we all engage in on a daily basis.

In short, Life in Flux.

I hope you stick with me, but if raw, introspective, girlish-like self-examination is not your bag, man, then feel free to subscribe to The Lund Loop, where I will give you the best hand curated info about what I am writing, reading, and thinking about the markets.

It’s a once weekly newsletter that is completely free.  Click here to sign up.

And once again, thanks to the StockTwits Blog Network — especially Phil Pearlman and Howard Lindzon — as well as all those who have played a part in its legacy.  I am a better investor, writer, and person for having been associated with it.

Destroying The Myth Of The Intermediate-Term Investor

Just wait for it.
Wait for it….

A couple of weeks ago an email went out to select Virgin America customers, the important part of which went like this;

The LOYAL3 Social IPO™ Platform allows individuals to purchase shares in our IPO at the same price, and at the same time, as institutions and other large investors. Participation is on a first-come, first-served basis.

Individuals can elect to purchase shares in our IPO through LOYAL3 in amounts ranging from $100-$10,000, with no transaction fees. Please don’t forward. This invitation is intended only for you and is not transferable. Your Elevate Gold or Elevate Silver Status will need to be effective as of October 29, 2014 to be able to participate.

It was an interesting, but not completely original way to offer IPO access to loyal customers.  Usually I am suspect of approaches like this as the big boys on Wall Street don’t like to share with the proletariat. Opening it up to the average Joe made me suspect that the offering was under subscribed.

Nevertheless, when a friend asked me about it I put aside my reservations and asked him a few questions, including why he wanted to buy, and how long he intended to hold.

His reasoning was straightforward and reasonable — he liked the service.  This was to be a long-term hold he said, in the neighborhood of 5-10 years.  He is a young guy, with no family, who has yet to enter his best earning years, which from my perspective made for some simple advice.

“If you believe in this company and it is a long term-hold for you” I said, “just put in as much as you can afford right now.”

“Right” he replied.

Yesterday I got a message from him;

“I am the biggest idiot in the world.  I talked myself out of buying that Virgin stock.  I reasoned airlines are a bad business and I didn’t buy.  I could have gotten in at $23 and now the stock is at $33.  I am such an idiot.”

“So would you have sold it already?” I asked.

“I would have put in a stop-loss to protect profits.”

“Really? But I thought it was a 5-10 year hold?”

“Lol. Who knows.  Good point!”

What my confused friend was illustrating is that there is no such thing as intermediate-term investing.  In the quest to save investors from their greatest foe, themselves, their only chance is to focus on the “now” and the “forever” —  everything in between is death.  Black death.  A vortex of bad decisions and negative returns that very few investors ever come back from.  You don’t want to go there.  It’s the Jan Brady of investing.

The closer you are to a day trader or Warren Buffett, the better off you are.

The short-term investor has time on their side.  It is transcendent and objective. The minute, hour, day, or week — if obeyed — tells them when to stop.  When the game is over.  And when to start it back up again.

The long-term investor relieves themselves of the burden of themselves.  All they need is a drawer to put their investments in and they are good to go.

The rub is that humans don’t naturally work well in either of these times frames.  We are drawn impulsively and inextricably to the intermediate-term. The time frame between “It needs some time to work out, I’m holding” and “It will never come back, I’m selling.”

I saw how this time frame works, up close and personal, early in my investing career.

My great-aunt Geneva was the oldest of the Kelly girls from Fillmore, Utah.  Yes, those Kelly girls.  A fiery redhead, she had a passion for life as intense as her as the color of her hair.  Though not a woman of means, a series of familial bequests had snowballed in her favor, leaving her in possession of a decent sized portfolio of common stock.

With no children of her own, she decided to leave the stock to my sister and I once she had passed. But before that could happen my father got very ill, and knowing our family as a whole would need it more, changed her will and left it to him.  Shortly after her death he took possession of my former stock, walked straight into the crash of 87′, and sold it all not far from the bottom.

I remember the stocks well.  There was Bank of America, Ford, CSX, General Motors, and a host of other blue chip names.  I can only imagine what that stock would be worth today if it had been given to me instead of my father.  Imagine, of course, because as a naive 20-year-old, I would have sold it just as quickly as he did after the crash.  Maybe even quicker.

That’s how the intermediate-term gets you; it feels so right, and the alternatives feel so wrong.

Day trading is one of the toughest things you can do and swing trading is only easier by comparison.  And the long-term approach requires investors to maintain a state of active ignorance. Neither time frame feels natural.

In early 2000 I read an article about some of the “dellionaires,” men and women, well, really only men, who had bought Dell stock when it IPO’d and had become millionaires, some many times over. This necessitated holding the stock for over 12 years.  Who, other than Warren Buffett does that?

I bought a stock in 1992, after the girl I was in love with introduced me to some friends who were looking for a drummer to join their band. They were all biotech grad students who worked as interns in the lab of a new pharma company.  (I’m sure you can imagine what a rocking band that was).

The company was (is) Cortex Pharmaceuticals and according to my new band mates, had a blockbuster drug that was going to cure Alzheimer’s.  I am still a long-term investor in the company and on the days when the stock actually opens, it trades around a nickel. That’s how long-term investing has worked out for me.

And those dellionaires, did the intermediate-term claim them when less than a year after that article was published the market crashed, or were they able to hold the stock for another 12 years until Micheal Dell made their choice for them by taking the company private?

What To Do Right Now In The Stock Market

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A few weeks back I warned that we might be seeing signs of topping in the market.  Whether or not we have seen the top is an open question and won’t be determined for a long time.  However, the recent volatility has unnerved a lot of investors who are worried that a crash might be coming soon.

Tomorrow in The Lund Loop I am going to tell you exactly what you can do right now in the market to minimize your risk, but more importantly, maximize your potential upside.

You can subscribe for free by just clicking this link.  As an added bonus, just for subscribing you will receive a free copy of my book “Trading: The Best of the Best – Top Tips for Our Times,” which contains over 200 trading and investing tips from 60 of the smartest people you will ever meet.

See you tomorrow.

-B

Satan Wants You To Buy These Stocks

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Everyone knows that each time a share of $AAPL is bought, another angel gets his wings.  But what about the other side of that equation? What about buying those “sin stocks” that Satan himself probably owns?

I’ve got a piece up this morning on AOL’s Daily Finance that explains why from a financial, moral, and pragmatic standpoint you SHOULD be buying these types of stocks.  And not just the obvious suspects. Sin stocks don’t just announce themselves with tickers like $DETH, $HELL, or $CNCR, so I’ve got a whole Sodom and Gomorah-ish list to check out.  Just click the link below.

Even The Righteous Should Invest in Sin

Why You Never Say Never In The Stock Market

Robert Downey Jr.

Investing may be your passion, but the process — the analytical process you need to find winners — should never fall prey to the trap of sentimentality, or worse yet, nostalgia.

This is where investing and art part ways.

As Americans we love our art, which in this modern world really means television.  With six-hundred channels to choose from we stalk our content with a retardedly keen eye, curating out that which resonates deepest in our soul, and throwing the rest away as if the chaff of the craft.

We binge watch our favorite shows, infusing an immediate and intense relationship with our favorite characters.  We love them — often more so than the material figures in our lives — exulting in their triumphs and despairing with their failures.  It is a part of our human condition, which forgets the line between art and reality.

Not so long ago I found myself in the restroom of an office building, standing in front of a waterless urinal which had recently been installed.  I turned to the right and remarked to my colleague standing next to me;

“Do they really expect these things to catch on?  The smell is awful.”

“Well they are supposed to cut down on water use.  It’s all a part of a drive to make the building more green,” he said.

“It sounds like they want to make it more yellow,” I replied, my Shakespearian wit going into overdrive.

“They’ll never go for it,” came the reply from my left.

“Who?” I said, turning to face the author of these comments

“The unions.  They will never go for it.  These waterless urinals mean no plumbing.  No plumbing, no work for the plumber’s union.  They will never go for it.”

The author of these comments was a forty-something man, who despite his scraggly beard, unkempt hair, and baseball cap pulled low across his brow, could not hide a somewhat boyish face.  There was a familiarity in his eyes that I could not immediately place.

“Right,” I said.  “The unions. They will never let them get away with this.”

“Besides,” he continued.  “They make the place smell like piss.”

We all laughed and small talk was exchanged as we washed our hands and made our way out into the hall.  Turning away from the stranger, I looked at my colleague and almost immediately, as he said, “Do you know who that was?” realized in fact who I had been talking to just a moment earlier about urinal politics.

“Luke Perry,” I said.

“Luke Perry,” he replied.

Imagine a time before the internet, before social media, and before six hundred channels of cable pumped content into our homes 24/7/365.  A time known as 1990, when there were only three and a half real television networks, and if you were on one of them with a hit show, you were a true superstar.

And Luke Perry was a superstar.  Playing the role of the ever brooding Dillon on the seminal show “Beverly Hills 90210,” he reached a level of fame that you could only imagine today if Robert Patterson and Justin Bieber were mutated in some horrible industrial accident into the cutest vampire pop star that ever lived.  It’s too dreamy to even imagine.

He was white-hot.  Every girl wanted to sleep with him and every boy wanted to be him.  But when his show ended, effectively so did his career.  Now he is the answer to a Trivial Pursuit question.   A Twitter punchline at best.

This is where art and investing reconnect.  Stars, once fallen, traditionally never rise again.  And stocks, particularly momentum stocks, once broken, do not return to their glory days.

The overwhelming exception to this rule seems to be $NFLX.  A stock which rose 600% in a little over two years and then lost 83% of it’s value in the following year.  This stock should, like Luke Perry’s career, be dead and buried.

History is full of momentum darlings that crashed and burned and have never recovered.  $CSCO, $BRCM, $BBRY, and $POT immediately come to mind.  That is the way it has always been.  Like a financial law.  So has it been written, so shall it be done.

But this bull market is changing the rules.  Stocks like $NFLX are not only resurrecting themselves, but surpassing their previous glory.  Look around.

$QCOM, a 90’s internet bubble casualty is getting dangerously near its all-time highs.  $TASR, a one-time momentum favorite in the early 2000’s is about 33% off its all-time high.  Doesn’t sound too impressive until you realize that from its peak at one point it had lost 99.992% of it’s value.

This market is so powerful that it has done the near impossible.  It has turned “Luke Perry” stocks into “Robert Downey Jr.” stocks.

I don’t know if this is a good sign or bad sign for the future prospects of this market, but it is sure more interesting to talk about than waterless urinals.

There Is Nothing You Can Learn From George Soros

Geroge Soros Market Wizard

Earlier this week the Irish Times ran a piece celebrating the 84th birthday of one of the most successful — and arguably, most well-known — investors of the last century, George Soros.  (Hat-tip to my friend Josh Brown).

Soros’ prowess in the markets is legendary, so much so that deconstructing his process in order to learn the secret to his success has become a cottage industry in financial circles.  In the world of  “Market Wizards,” Soros is Saruman.  Tolkien baby…look it up.

However, in the Times’ article, his son Robert demystified the source of the Elder Soros’ alchemy in such a simple and definitive way that it may drive market historians to acts of self-immolation.

Apparently It all comes down to a pain.  In the back to be specific.

According to his son, Robert, Soros’s trading was always influenced by more than reflexivity. “My father will sit down and give you theories to explain why he does this or that”, he once said, “but I remember seeing it as a kid and thinking, ‘Jesus Christ, at least half of this is bullshit’.

“I mean, you know [that] the reason he changes his position on the market or whatever is because his back starts killing him. It has nothing to do with reason. He literally goes into a spasm and it’s this early warning sign.”

Soros has admitted to relying greatly on “animal instincts”, saying the onset of acute pain was often “a signal that there was something wrong in my portfolio”.

His decisions, then, “are really made using a combination of theory and instinct”.

That’s right.  Though you and I did our damnedest to read between the lines and glean some sort of insight from The Alchemy of Finance in the 80’s and again with Soros on Soros in the 90’s, it was all for naught.  Now we know the true source of this modern-day Tim The Enchanter’s genius.  Monty Python baby…..look it up.

This revelation might tempt some of you to adopt the same market style as Mr. Soros, a view I wholeheartedly endorse, as long as the profile fits.  It’s easy to see if a spasm based methodology is right for you by answering a few simple questions.

  1. Are you a passionate student of the market?
  2. Are you open to considering a wide range of investment themes?
  3. Have you ever booked a $1 billion dollar single-day profit by breaking a sovereign bank?
  4. Did you marry a 41-year junior third wife on your $22 million dollar Westchester estate while Paul Tudor Jones and Julian Robertson looked on?
  5. Have you booked over $40 billion in cumulative profits?
  6. Do you have a full head of hair well into your eighth decade on this planet?

If you answered “Yes” to 5 out of 6 of those questions, then by all means, adopt the “discomfort” approach to your investments.  Let your back pain, your trick knee, or even your throbbing headache from the 13 Jack and Cokes you threw back at the bar last night be the guide to your entries and exits.

For the rest of us who move in more mortal circles we will try to use objective, data driven, risk averse methods to move our thousands, and if lucky, millions, in and out of the market.  We’ll try not to let our fear nor our greed drive our decision-making process, and ascribe that pain in our back simply to less than optimal ergonomic choices in our office furniture.

When Billionaires Cry

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The Lund Loop is a once-weekly curated slice of what I am writing, reading, and hearing about in finance, tech, music, pop culture, humor, and the good life.  But no sports or knitting….ever!  You can subscribe for free by clicking here.

——-

Welcome back folks.  I know it’s been a tough week for all of us given the horrible news out of the Jay-Z-Beyonce camp but I appreciate you putting on a brave face and checking back in with the Lund Loop.

By the way, if you are getting this by mistake or no longer wish to receive the Lund Loop, be a sweetheart and refrain from reporting this email as “spam.”  Just click the “unsubscribe” button at the bottom of the page and I promise I will never darken your doorstep again. Thanks. Now let’s do this….

Writing:

Reading:

Hearing:

Short and sweet….

“Nobody solves poverty by going broke.”

-Adam Braun, founder of “Pencils of Promise” which has built over 200 schools in 3rd world countries.

—–

“People go where they grow.”

Seth Godin on what attracts people to certain content or products.

—–

“Suicide.”

 -Marc Maron when asked by Norm Macdonald what other professional options he had before starting his podcast.

—–

“He was a natural movie star, not a natural actor. He had to learn that.”

-Scott Eyman, author of “John Wayne : The Life and Legend.”

—–

“Get up, do it, prove you can do it, then do something else.”

-Magician Lance Burton on how to keep people engaged.

Misc:

And finally….

  • When I die, turn me into one of these and then huck it at Justin Bieber/Kanye West/A random Kardashian/Anyone on “The View.”

Thanks for hanging in there with me.  Don’t forget to follow me on Twitter and if you liked The Lund Loop why not forward this email to a friend and tell them they can subscribe here.

See ya next week!

-B

CNBC Is Dead – Here’s Why Retail Investors Won’t Miss It

To those of you who have been loyal readers of this blog over the last few years it might be apparent that I have “slacked off” a bit in 2014.  And by slacked off I mean, barely blogged at all.

At the first of the year I was fortunate enough to have the opportunity to begin writing for AOL’s Daily Finance and About.com’s Stock Guide, and I am just now starting to figure out an editorial schedule that will let me handle those obligations as well as post regularly here.

In the meantime, check out my piece on the death of CNBC for the retail investor.  Here’s a slice….

CNBC was never really a useful tool for the retail investor, but now it occupies an awkward space where it’s neither fast enough to compete with social media, nor deep enough (nor accountable enough) to compete with long-form digital content, and not accessible enough to compete with online personalities.

Advances in technology have finally revealed the dirty little secret about CNBC — and financial news television in general: Their shows are window dressing for clients in the offices of institutional investors, and obsolete badges of honor for financial pundits.

And if you get a chance, take a look at an “Intro to Technical Analysis” series I just finished.

Thanks for your patience while I get my shit in order.  I hope to be back in the groove of things here on StockTwits very soon.

You Take The Money Where You Find It

You would not believe the amount of shit I took after posting this to the StockTwits stream a couple weeks back….

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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…

Up 22% since this. RT @bclund: $SHLD has put in a double bottom. If you’ve ever wanted to bottom fish it, now is a good risk/reward spot.

— 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.

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About Brian Lund

About Brian Lund

Great father. Good friend. Decent writer. Lacking husband. Solid drummer. Sometimes funny. Often A-hole. Terrible poker player. Too smart. Punk rock. Work in an ice cream shop.

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