As much as I usually enjoy this blog, what I do here isn't easy. I manage money professionally, I manage a charting product, and I blog seven days a week. The vast majority of folks……. 99%+…..have been nothing but sweet and grateful about it. There are a handful of clods out there who are negatively obsessed with me and, for reasons I cannot fathom, make it their business to say nasty things about me. I'm confident Karma is going to take care of them in good time, because the good Lord knows my heart's in the right place.
One of them is reading this post right about now, and he's really, really hung-up on me – – he even watches my videos, and takes the time to tell the seven people that visit his blog about how stupid and inept I am. Mental instability can make people behave in ugly ways.
But one email in particular (from a different person) was especially nasty, and I received it at what apparently was almost the exact top of the market. Allow me to share this little gem:
I cannot know the future, but I try my best. All I can say is, the email – one of the nastiest I've ever received – was an interesting turning point in the market.
So what's my point in all this? Simply that extremes in human emotion can be good indicators to market turns. I get very, very concerned when I'm feeling giddy about my own trading, because that means I'm in the danger zone, and if I'm wise, I probably will simply close my positions out and take a break. Likewise, if the snark level gets high – described as the S.A.D. Indicator within the Slocabulary – things are about to turn better for the bears.
Watch your emotions, and watch those of others. Self-awareness is an important element – perhaps the most important element – of trading success.