Written by: Mike Simonato, Ontario Presenter: “Investing for the Long Term, presented to the Feb. 6, 2021 International Online Forum, you can watch by CLICKING HERE.
Years ago I was headhunted by many Financial Planning Groups and at the time I thought it was crazy because I thought they were only interested in me because I was really good at golf. I just thought what the heck I got paid to go in tournaments, good meals and awesome prizes. What I didn’t realize was that the skills used in golf could be used successfully to help us Trade/ Manage people’s money. Here is a Prime example:
The Ability to Adapt:
When I step up to the tee, I know exactly where I want each shot to land. If you ever watched the pros on TV while they have a game plan, it doesn’t always go as planned ie the Drive (first shot) could end up in the trees, long grass or a sand trap. For anybody at that level, this usually isn’t a big problem. They know exactly what club to use in any situation, where to place the ball and type of swing etc. Example in trees with low branches you choose a 3 iron and have the ball forward in your stance whereas if you are in a sand trap with a high lip you may use a wedge or 8 iron depending on distance with the ball a little back in the stance. The key is no matter what the situation, you know what to do. The same applies to trading. We can have a trade perfectly thought out, but these days a tweet, Covid, Earnings or Robinhood people can change things in an instant. Our success can all depend on our ability to adapt. Do we know what to do in any situation we may face in a trade, this can be the difference between success or failure. For example, in an unexpected pullback, do we use stops, sell or use options to protect? We must know what to do in advance and be prepared to do it without hesitation.
Currently, we are continuing to ride the bull however we are in a 4th wave with numbers rising and health care pros getting burned out, businesses can’t find workers or get product not to mention Afghanistan. For companies to survive, they must be able to adapt to changing circumstances and for us we need to recognize these companies that are adapting so we can trade them and hopefully reap the rewards. Here are some examples of companies that adapt to changing circumstances:
As I have mentioned previously the many new companies have sprung up giving people the opportunity to continue shopping and spread the payments:
- Square bought Afterpay
- Amazon has partnered with Affirm
- Facebook is using Quad Pay
- Apple has adapted as well
I talked with a Government worker in Atlanta today and she said with the Eviction moratorium ending there will be a huge number of people on the streets.
- Zillow has been buying every house they can to position themselves to profit no matter what ie have houses to sell or rent whatever situation presents itself
Like in Golf and in business the Ability to Adapt is the Key to Success
Next week I’ll highlight one of the biggest mistake Golfers make as well as traders.
As always nothing more than my 2 cents and I hope it’s of value and interest.
Now for the Markets:
DOW JONES: Continually bounced off the 79 SMA however the latest bounce hasn’t led to a new high. It has flattened out below the previous high.
NASDAQ: Nice up day today leading to a new high. The Bull run continues
S&P 500: Same as the Nasdaq Bob Turnbull continues to make money. (See attachments for Aug and YTD results)
MKT TIMING: Finally broke above resistance with a strong candle today
READ Views and Strategy
PTSE: Continues to rise with a strong candle today. Nice run since Nov 2020 pullback
VENTURE: Triple test of support but still really weak
MKT TIMING: Continues a nice Bull Run All 3 Indicators rose this week as well
Read Views (Important) and Strategy
AUSTRALIA Read Views and Strategy
BRITAIN: Read Views and Strategy