While I was patting myself on the back this afternoon for not sweating CSTR being down again, it occurred to me that it might be affecting me more than I realize. Of course, the overall goal here is to not let one position determine how confident I am in what I do. This has always been easier said than done for me. Hell, I started this blog because everyone I talked to at work told me I would never be able to invest successfully.
I am fully aware that I have serious issues dealing with winners. When I am holding a winner I will calculate what my profit percentage is every five minutes the entire time the market is open. This not only makes me unproductive at work, it also takes my focus away from my Watchlist. I am not sure how to deal with this, but I think being aware of it is a start. I believe it will get better with experience and some success.
My new problem could be a little trickier. It struck me today that I had no interest in reviewing the IBD 50 this weekend. That is what I do. Every weekend. I wrote it off yesterday, deciding that it was just because I have Leaderboard now. Then I put off typing this post all day. The more I think about it, I’ve been avoiding the market all weekend. Apparently this is my way of dealing with a position not going the way I had hoped. It could also be a total coincidence because I had a busy week and a very busy weekend. Either way it’s something I need to keep an eye on.
Putting my emotions aside, CSTR being down isn’t that big of a deal. It dropped in low volume today and is still trading above its 10-Day Moving Average. Rationally, I’m not too worried. Like any Leader, if the market has a big up day, CSTR will have a big day.
On a big picture note, if the market dropped the past two sessions in anticipation of poor second quarter earnings reports, isn’t there a good chance that things weren’t as bad as expected and most stocks beat the lowered expectations?