Sense of (Stock) Direction and OTD

Absolute Traders recently held their CAF last August 6, unfortunately I wasn't able to join. Being employed has its perks, but sometimes you miss out on your personal passions.

So far stocks/equities have been enjoying a good ride this year just when the "experts" said - during the first quarter of the year - that equities will have a tough ride this year. Just goes to show that the only person you can trust is yourself - as well as your ability to understand the stock market.

Then again, during the first quarter there was no evidence pointing to where the market would go. Judging from my impaired short term memory, I think the consolidation phase took almost a year. And if you've attended previous CAFs, you'll know that you don't trade during such periods of time.

There are people who just want to trade regardless of the direction (or lack thereof) of the market. I call this obsessive trading disorder or OTD. The consequence? People who have ipits (stuck), or, stocks they will hold ostensibly for "investment".

Symptoms of such behavior are aplenty, but the person afflicted with this disorder asks these questions and exhibit such habits -

(1) What's the new hot stock?
(2) What price do I buy? (asks everyday)
(3) When do I sell? (asks everyday, and, if the trade goes wrong, asks for eternity)
(4) What's the latest chismis (rumor)?
(5) Checks the net for the latest chismis if he doesn't get any from his "sources" (usually friends, the broker, relatives)
(6) Interprets the chart as always leading up, and if it's going down, "It's just a correction."
(7) Probably has the same reckless behavior when it comes to managing his money and expenses

Market activity has risen and perhaps the stock market will go up again (notwithstanding dire economic news). I can tell because there's been a resurgence of trading in basura stocks again. SMC is shopping around and selling around, unlike MPI who's just buying and gobbling up everything. Meralco now trades like a speculative stock.

Yep, the bulls are at the door and the bears are slowly jumping out the window.

picture is from MSN, I got this last year.