What is a a nervous nellie?
noun, often capitalized 1st N-ˈne-lē
: a very fearful or nervous person
: a timid or worrisome person
In my opinion a good trader needs to be confident and should never be nervous. Guess what happens to nervous traders - they get eaten alive - at least the ones that aren't sitting "in cash" waiting to make an ill advised entry. Nervous traders end up buying late - hold losing positions too long and winning positions too short. Nervous about upside, nervous about downside?? - don't ever let your emotions dictate your investment decisions.
Any trader that wasn't sobbing violently in the corner awaiting market Armageddon yesterday would have found tremendous short term entries in $YHOO, $EBAY, and others I highlighted on the blog, private twitter, and bought in the dittotrade.com account yesterday.
$AMZN up 3% $BIDU up over 6%, $FB up 2% $EBAY 3.5% higher today. It was a great day to be long some of the beaten down names, not a day to worry about what may be, or could happen.
Since the lows in March 2009 a tremendous amount of skepticism remains about this market. You can count me as one of those skeptics however I also know a nice buying opportunity when I see one. I'm not saying we are going to spike to record highs tomorrow. I did lock in a lot of my profits today. But whether the market heads higher or lower I am not nervous about what tomorrow will bring,
The negativity and skepticism the last 5 years, I believe, has truly helped propel this market higher. Nervousness? Sounds like the time to buy. Confident? Looks like the time to sell. While its easy to take jabs at CNBC contributors, I am thankful for the service.