Monday, March 23, 2009

Pure emotion

I get to work, read an investing newsletter from my uncle Gerry, log into my trading account and immediately make a blindly emotional buy in the first minute after the opening bell. How's that for not following my own advice? I broke the following rules:

1. Never invest on emotion

2. Never invest during beginner hour (the first hour after the market opens) 

In a remarkable break with history, the markets went roaring up today, including my stock, a leveraged financial ETF called ProShares Ultra Financial, which went up 25% today. Do I feel like a star? Yes I do. Is it completely stupid to feel like a star when your short term success is due completely to blind luck? Of course, but it still feels good to be on the winning side of a trade for a change. Actually, I consider this "gambling money" and since it was a small amount I was willing to take a risk. So I submit that this was a Monday morning trip to the online casino, likely brought on by the lack of excitement over the weekend (we were laying flooring in a rental unit). 

Next thing to I keep it or dump it for a profit at the end of the week?

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