Post Fed Thoughts

I've been taking this new rally very slowly, and so far it's keeping me out of trouble.

I have a mindset I use to try to keep myself on track. Before I make any new buy, I ask myself: 'If this trade loses money, will I be disappointed in myself?' Obviously any losing trade is disappointing - but they do occur. My goal is to avoid any mistake within my control that leads to a losing trade. Since I started this blog I've broken my own rules at times, and there's no excuses for that. As I stated recently, those times are over.

For instance, I considered today adding to my position in (UTHR). I'm not a big fan of the add-on buy, but the stock seemed to be gaining momentum and moved up in big volume. I could've added shares up to $115.58 within the CAN SLIM rules. However, I knew the FOMC was meeting today to discuss interest rates, and at those key points discretion is the better part of valor. It's too easy to lose money and too hard to make it, so I continue to temper my aggressive nature and work toward a more patient and disciplined approach.

In the past year the market has displayed a good deal of volatility around these Fed decisions. Today the market finished up nicely in a powerful move on great volume - but the wise play I think is to see what it does tomorrow. I expect it to fade some, and that may provide an opportunity for another buy or it may lead to the end of this young rally. As long as I remain patient and measured in my approach though, I will have no regrets however it ends up.

-Geoff