Tom
Scollon
Chief Editor

I suspect from some of the feedback we receive that many readers are still torn between media hype and the underlying reality. This is a real issue particularly when you start off trading, but if it is any consolation, even experienced traders are at a quandary at times as to what to believe.

First rule is to avoid being freaked out by the so-called “experts” who try to style what we think. Remind yourself that headlines are only about selling papers. Despite the media being tightly held in a few corporate hands there is still to some extent competition for ratings – even within sections/editors of the same newspaper. So if the reality is not sensational then they will create a headline that will ensure their presence is “top of mind”.

Second rule is that journalists are not necessarily well educated in the particular subject about which they write. They are reporters – generally nothing more!

Third rule is that as investors you do not have to be constantly in a worried state of mind. There is not always a dark day looming. You can relax sometimes. I guess the word “stalking” perhaps implies being forever vigilant – but when we find our catch – we can actually go into relax mode. That is not to say we turn our back on the market but rather we do not have to be on “high alert” as in “being ready to pounce at any time” – that is an unhealthy state of mind if continued indefinitely. It can well lead to burn out and when that happens we are unlikely to make the wise decisions. This is as good a time as any to take a break and recharge the batteries.

Fourth tenet is to try to survive without the media – and go purely technical. It does work – try it for size and see if it fits you. You will be amazed at how much clearer you think with less noise!

Well, the markets look set for a year end rally. On a seasonal basis we would expect to see a run up now to the end of April – the unknown can happen but this upward trend remains intact.

Trading Tutors will go into recess for the next two weeks. After that, the editorial from yours truly will recommence, although articles will generally not resume until late January as our columnists will be taking a well earned break.

In the meantime I would like to thank you for you keen interest in Trading Tutors since its inception earlier this year. We look forward to serving you in 2004 and helping you create wealth – independently!

Have a happy, restful and safe festive season.

Tom Scollon

Chief Editor