June 13, 2006 at 9:05 am | | Comments 4

Never Force It

One of the lasting lessons my Dad taught me in golf was “never force it into the wind.” Growing up in Oklahoma and then playing college golf in west Texas, I can tell you that I’ve played a lot of golf in the wind. Headwinds tend to compound your errors by accelerating the spin on the ball, so what might normally be a slightly errant shot will often end up way off line into the wind.

Similarly, the market tends to compound our errors when we get too active under suboptimal conditions. Overtrading in a choppy market easily leads to poor performance, so the idea is to never force trades if they aren’t there. At some point, you’ll find a tailwind in the market which makes your strategy easier, and that’s the time you’ll want to be more aggressive.

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Jeff White
President, The Stock Bandit, Inc.

[tags]Trading, Trading Psychology, Golf[/tags]