Technically Speaking: 2021 Investor Resolutions & January Stats

No one knows about “mania driven markets” is how long the mania will last. It is often the case that they tend to last longer than you would logically expect.

Such is why it is vital to have a set of guides to follow. As we kick off the New Year, it is an excellent time to set out our “investing resolutions” for the year.

Investor Resolutions For 2021

Here are my annual resolutions for the coming year to be a better investor and portfolio manager:

I will:

  • Do more of what is working and less of what isn’t. 
  • Remember that the “Trend Is My Friend.”
  • Be either bullish or bearish, but not “hoggish.” (Hogs get slaughtered)
  • Remember it is “Okay” to pay taxes.
  • Maximize profits by staging my buys, working my orders, and getting the best price.
  • Look to buy damaged opportunities, not damaged investments.
  • Diversify to control my risk.
  • Control my risk by always having pre-determined sell levels and stop-losses.
  • Do my homework. I will do my homework. I will do my homework.
  • Not allow panic to influence my buy/sell decisions.
  • Remember that “cash” is for winners.
  • Expect, but not fear, corrections.
  • Expect to be wrong, and I will correct errors quickly. 
  • Check “hope” at the door.
  • Be flexible.
  • Have the patience to allow my discipline and strategy to work.
  • Turn off the television, put down the newspaper, and focus on my analysis.

These are the same resolutions I attempt to follow every year. There is no shortcut to being a successful investor. There are only the basic rules, discipline, and focus that is required to succeed long-term.

A Year Of Challenges

At the moment, every analyst is wildly optimistic about the new year. Expectations are high for explosive economic growth, more stimulus, debt-driven infrastructure spending, and 4100-4500 on the S&P by year-end.

Maybe that will be the case. However, investors have priced the market for perfection with high valuations, low interest-rates, and low inflation. Any shortfall in earnings growth, economic recovery, or a rise in interest rates or inflation could have an immediate and negative impact on investors.

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