Be Your Own Guru

I've been trading in the markets for nearly 20 years and have learned quite a bit through my efforts to master the markets. After nearly two decades of focus, here is the short list of random things that I've learned:

There is no such thing as "market mastery." Anyone who touts themselves as a "guru" is someone you should run away from without looking back. Think Sodom and Gomorrah -- don't look back or you'll turn into a pillar of salt. And they will have your cash after selling you an expensive back-tested trading system or a market-timing newsletter of dubious performance. It's fine when someone else calls you a guru. I've been called a guru various times -- and each time the person knew my press but did not truly know me. I take being called a guru as a well-intended compliment, but it has no meaning. Trust me, I am no guru. I'm the student, not the teacher. You'll be surprised at who your teacher -- your guru -- really is. "Guru" is a Sanskrit term for teacher or master. In religion, a guru teaches religious philosophy to eager students. And isn't it interesting that this term can now be applied to trading the financial markets? Sure, the link is there. Many traders approach the financial markets with religious fervor. They seek a guru to teach them the mysteries of the Church of Trading. Whenever you hear someone described on financial television as a guru, you should know that any refutation of that label by the guest is just false modesty. He knew the term would be used because it has been previously used. Every trader is looking for the next trading idea to make money. The competition is the trader who takes the other side of your action. You're a buyer; he's a seller. Only one of you will win. So, each trade is an independent "at bat." Sometimes you strike out, sometimes you get on base, sometimes you get to touch 'em all. The best traders learn from every trade. They don't take the time to crow about their last great trade lest they bring the Dark Goddess of Humility down upon themselves. She will loom over their shoulder until, in a moment of weakness, they make a wrong decision with such destructive implications that all they have left in their account is a margin call and an oversized position in humility. Be your own guru. You are your own best teacher. You can learn from the concepts discussed in this venue, or in my nightly videos at StockMarketMentor.com and OptionMarketMentor.com. Ultimately, you have to take the concepts discussed and apply them. You have to apply them to your own trading. No one knows your decision-making process better than you do. What works for someone else might not work for you. And what does work for you might be an abysmal approach for someone else. Teach yourself about all the mysteries of you. When you become your own guru, you are truly on your way to learning about the market. See yourself as a student of the market, not a master of the market. There truly is no such thing. Sorry if I burst your bubble (or the bubble any self-titled "gurus" out there).

The weekly chart of Home Depot (HD) below shows a very healthy pattern of consolidation after a very profitable uptrend. I don't think the uptrend is dead. Rather, I think that buyers and sellers are marking time. They are waiting for more fundamental data to justify buying stock at higher prices. The buyers need a reason to buy higher, and the sellers need a reason to demand even higher prices for their shares. When that happens, it's time to buy HD again....282 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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