2009 for me was year full of new experiences in the stock market environment.
As probably for many of the investors, 2008 was a -annus horribilis-, also for me. -30% was my result. And oh god, I felt bad (With some housing constructions and small children, the money could have been spent otherwise. Not that I could not miss the money, but the thought alone. This is not how I was raised.
2 options :
1/ get out of trading, like probably a lot of investors did.
2/ stay in, and improve my trading. (and try not to trade with the “I want to recover my losses” adagium)
I choose for the 2nd option, and learned a lot, really A LOT !
- Stop losses. In 2008 I still hoped a stock would zoom up again. Just like that, right
- Technical analysis. Followed a 2 hour course, and felt it could add value. In 2008, I just “chased” and then bought on the top. So I learned and used trend lines, moving averages, resistance, support, bullish engulfing, shooting stars. I learned a lot more, but did not use it (yet). Stick with the basics first.
- Trackers. In 2008, I was in 1 mutual fund and individual stocks. I stepped back to watching global indicators to get a “feel” of the market. Trackers are excellent for that.
- “short” term trading : not day-trading, but more like a week to several weeks trading. That goes with the closer follow up that I started and the combination with technical analysis.
- Options : did not work in 2008, neither in 2009 🙂
- Twitter & Stocktwits as a valuable source of information. There is a massive amount of information out there, so I used 3 people of which I read everything with great interest to learn in 3 different areas world view & fundamentals, technical analysis, trading psychology) : Thanks to Moise, Brett and Serge !
- Control emotions : tough one, still in 2009
- Blogging : writing about my own thoughts gave me the opportunity to look back at it afterwards. Good for learning. And hopefully to some readers it was somewhat helpfull too.
It resulted in a 51% profit, off course backed by the positive environment since March. But hey, still better than S&P in 2009.
2010 will then have to be a year of confirmation.
I wish you all a happy and healthy 2010 !