Thursday, December 29, 2011

Predictions for 2012

I have no idea how the markets will end in January, let alone 2012. If that seems like a funny way for starting a post titled "Predictions for 2012", then read on......In my humble opinion, all these year beginning predictions are good for is gloating at the end of the year in case they do come correct. As a short term trader, I don't care which way the markets head from here as long as I am on the right side of the trade, and so shouldn't you. Bull markets, bear markets, corrections etc are excuses best left for mutual fund managers and going by their recent records, even hedge fund managers. As short term traders, our job is to make money irrespective of the direction of the markets.

In fact, let me take this discussion a bit further by saying that all these yearly predictions do more harm than good. Suppose, I predict that Apple will hit 500 by the year end. As a result of this prediction and wanting to be proved right (who doesn't like being right?!), I will be looking at Apple through tainted glasses all year. Let's leave the yearly predictions to the economists (and recent times have proved how much do they know!). As short term traders, our only goals should be to try and become the best traders we can become. Let 2012 be a step in that direction!

Take care and good luck!

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dptrading said...

Has to be one of the best predictions posts I've read this year, well put.

PhoenixTrader said...

Wise advice and well said