It’s a tough market out there

The Tough Guy started daytrading in 2005. It seemed like everything was going up. Took a 3 day class on the basics of trading and suddenly the world was his oyster. The heavens parted, and money rained down. The trading account had doubled in in two years and that’s when trouble happened. The Tough Guy got cocky. Hey, bet I double this in one year echoed in his head. Fear of not making money was everpresent. So he decided to do something stupid. He got greedy. Margined everything he could. Bought into commodity stocks. Gold, rare earths, potash, and oil. When the market crashed, that rookie trader learned some of the toughest lessons of life ever. He stupidly held onto those stocks until alas, margin calls. IHe did not understand completely what he had just done until he had to borrow money to pay off the margin. Banks were screwed, and so was The Tough Guy. He is still paying dearly for not being able to let go. He watched $POT drop from $140 to $36 and finally capitulated. But it was way too late. The portfolio was meant to be used for vacations and luxury items. Maui is incredible. After 2008, the portfolio has been successfully used as an income supplement. The only problem being that the portfolio now doesn’t grow. But not bad for an upside trader. He has adjusted his trading style for current conditions and thinks 2013 will be a banner year. $SLW,$VIX, $AAPL, and $CVAT (long term spec) comprise the core. That is a tough core! Dicipline and toughness are not genetically transferable. They are learned abilities. The Tough Guy hopes you don’t learn these lessons like he did. The hard and expensive way. The lesson here is that it is very tough to be diciplined in anything. In the markets, be true to your dicipline and style. But be aware of changing conditions. When the touchscreen cools down, I will be back. Till then…

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