What can you do to improve your focus dramatically | stockbee


What can you do to improve your focus dramatically

Stop paying attention to macro issues. Are you a macro trader? Then why are you worried about macro issues? All I care about is whether the stock I buy today or tomorrow will make 20% or 50% move. 

Macro themes are worth a rat's ass if you are looking for a 20% or 50% move. Stock make 20% or 50% move due to company or sector specific catalyst. Unless you are trading 100 million plus account size stop worrying about macro themes when making trading decisions. 
Mass media is obsessed with macro issues and if you see lot of trading blogosphere it spends 95% of its time masturbating over macro issues. If I want my blog to be read by largest number of people I will pontificate everyday on macro issues.

Scratch below the surface and look at what returns all these luminaries who are pontificating on macro issues are getting. If you want to figure that out subscribe to stock picking service offered by the most popular market blog  or another popular blog which puts out pretty graphs and pie charts of all kinds of macro stuff daily.  You will get lots of very well presented macro graphs and pie charts which will give you great mental satisfaction. And some shitty stock picks based on their macro themes which do not beat the street. So If these people are so smart in macro themes, why are they not making money. 

 Macro factor do not manifest themselves in days or weeks. Just because somebody says there will be hyperinflation, it does not mean it will happen tomorrow (if at all it happens). 
 If you are losing sleep over issues like:
US deficit
Dollar depreciation/appreciation
aging population
health-care cost inflation
underfunded pension
Stop trading and start running for the job of President of USA. 


Yaba Qi said...

Pradeed, you rule.

The Sound Center said...

Bravo Pradeep!