Don't have a Lazy New Year
I could be really lazy right now and just rehash the New Year resolutions stuff I wrote last year (and the year before).
But no, I am NOT going to be lazy in any way in 2007 and that includes my trading. You should be doing the same thing too, lazybones! So I want you to promise me to be energetic with your trading this year.
I run occasional trading seminars and those coming fill out questionnaires for me so I have some idea of their trading habits. And the word that comes up time and time again? Lazy. "I made too many lazy trades". "I wish I was less lazy in my stock picking." "I picked a real dud, I did lazy research." You get the picture.
Basically a lot of those attending the seminars were buying on a whim and quite honestly weren't bothering to do any research. And they wondered why they were losing money. Before you make any trade think hard: Am I being lazy? Could I be doing more research? Is this really the right time to buy?
Plan the trade properly. What timescale are you looking at? What percentage did you want from it? What's your stop loss? Did you look at the last two year's worth of reports? Did you see the company's website? Have you checked the charts? Have you looked at current market conditions? Or are you buying because a bulletin board tipster tipped it up or a magazine recommended it?
Write everything down about the company and your reasons for buying. Does it all add up or are you simply making a trade because you're a bit bored and want a touch of excitement? Now have a think: how many lazy trades did you make last year? None? Liar! I made one or two myself.
We all do it; we all have lazy days or lazy weeks. In fact I'm feeling lazy right now which is why this piece is shortly coming to a close. If you feel lazy don't trade. If you know you're about to make a lazy trade, switch off the computer and go out for a walk.
No lazy trades for me so far this year. I like the look of Carclo, Universal Salvage, Telecom Plus, Trifast, Redhall, Renold and Savills and think all these will make me money in 2007. And I researched them all properly. Honest!
Good luck to all readers for your trades in 2007. Do plenty of your own research and reap the benefits. Happy New Year!