The Need for Hopefulness
I've noticed recently that we seem to worry about everything. We agonize about the possibility of terrorism in our local communities, we worry about whether we'll be ready for retirement and we are very concerned about how our children will fair in this highly demanding and, at times, difficult world. I usually find that if I'm not certain of where I'm going or how I'm getting there, I tend to have more concern than if I actively sit down and plan for the future. We hear daily on the financial news programs that investors are "worried" about a variety of things that will move the markets lower. What's the point?! Let's start planning our personal situations and stop creating the anxiety.
Economically, things are not that bad. The summer months are over, and we are now preparing for autumn and the changing colors of the trees, feeling a nip in the air and the smells of the season from cinnamon to evergreen. I don't know about you, but I think this is a great time of year. And as years go, 2007 has been very positive economically! The Fed sees unemployment hanging around a range of between 4.5 percent and 4.75 percent this year, the Dow Jones Industrial Average has surpassed the 14,000 mark and predictions are that it will continue to move forward. If you've followed diversification and proper money management, you've probably done pretty well in your trading so far this year; all this despite supporting a war in a highly partisan environment. Not too bad!
Sure, there are some challenges ahead that could complicate our national and personal finances. The negative scenario that the U.S. housing sector is pushing through today along with the ever-increasing cost of energy could certainly cause a drain on our personal finances and put some tension on the retail sector as well as pressuring the trade gap. But there's not a lot we can do personally to generate solutions for these hot topics. The one thing we can do to sustain our personal "corner of the world" is to develop a positive and constructive attitude. When you decide to carve out your personal path using even a small amount of confidence, you can't help but develop the belief that you can succeed at anything you set out to do, no matter what the odds. Believe me, I've done it.
Positive thoughts and actions create positive results. If you have the wrong attitude, then your trading could be affected. Doing anything with the wrong attitude will lead you in a direction that will be a burden rather than a blessing. Individually, things may be tough to deal with, but collectively - as an encouraging population - we can do anything. As we approach the final quarter of the year, I'm hopeful for the months ahead, and I hope you are too. We've proven this fact in the past and I have no doubt that we will bear it out again in the future. Become proactive and cheerful by developing your attainable goals while staying focused on the situation(s) at hand.
The improvement of anything you do in life requires you to get the education you need, whether formal or informal. If you feel like you need to improve your personal investing skills, why not find a trading group in your local area and work with others to perfect your skills or take a formal class? It's all about education. If you are learning to play golf, I'm sure you have to practice. If you are trying to master algebra, you have to study. The same is true for an effective and profitable financial life. Determine your direction, get educated and you will get results!
Happy trading!
Originally published in James Dicks: Buy*Sell*Hold magazine.