Since it's a long weekend and I'm sure most of you are sick and tired of all this BREXIT nonsense, I'd like to share something I read on some blog. It actually applies to appropriately to what we do here at Equity Sense. I continue to reiterate to both new and old clients that we are not experts but simply seasoned traders who just understands how markets work.
A lot of what you need to do is read people to understand the markets. Of course, it's a lot more challenging to do so in front of a computer screen. It's even more difficult to understand what machines think because do they really think? Machines only act on how they have been programmed by their masters.
So here's that little 'parable' if you like:
The engine of a giant ship failed to start. The ship's owners tried one expert after another, but none of them could figure out how to fix the engine. Then they brought in an old man who had been fixing ships since he was a youngster. He carried a large bag of tools with him, and when he arrived, he immediately went to work. He inspected the engine very carefully, top to bottom.
Two of the ship's owners were there, watching this man, hoping he would know what to do. After looking things over, the old man reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. He carefully put his hammer away. The engine was fixed!
A week later, the owners received a bill from the old man for ten thousand dollars.
"What?!" the owners exclaimed. "He hardly did anything!"
So they wrote the old man a note saying, "Please send us an itemized bill."
The man sent a bill that read:
Tapping with a hammer $ 2.00
Knowing where to tap $ 9998.00
Effort is important, but knowing where to make an effort makes all the difference!
In a way this story speaks to us. We're not the smartest people on the block like the MBAs and PhDs and hedge fund people they put on CNBC or Bloomberg but we know how to make money and when to really milk the markets for what they're worth. Just like we held off for the BREXIT vote or Mark Carney speaking, that's when you know that the people you follow know when to really hit it. As the saying goes, "Strike while the iron is hot!"
If you want to follow the right people who knows when to make money properly, definitely get in while the SALE is still going.
Have a good weekend!
Traders from Equity Sense will be writing on this blog on positions and other market-related things.