Thursday, January 19, 2006

Rhetoric Bias

Humans are easily swayed. That's why most of them will lose money in the game of uncertainty.

Case in point: lots of rhetoric lately on this move lower. Most of it will set a backdrop of apprehension to the current situation. We've felt a wave of it and honestly, it makes one feel twice.

Except that "feeling" is exactly where we all go wrong.

I'll make this simple, and I'll bet that I will be no more wrong than any other trader who digests news, gossip and company numbers for breakfast, lunch and dinner:

The market rallied, broke out and corrected. The correction is strong and scary, as it always should be to be deemed a correction.

As I said before, get longer.



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