This relates a bit to the 4 week intensive after which my ability to diligently follow my system has certainly improved.
FLT had a buy signal yesterday (23 July) and as I am one position short on my AUS portfolio I went to enter a buy order this morning and found that the stock dropped sharply about 6% on open. The only current news I could find is an ASX announcement that FLT made this morning trimming full year profit guidance which the market obviously reacted strongly to. I understand this is bringing an element of subjectivity into it but my question is are there circumstances like this which may invalidate a buy signal or do I just mechanically follow the system and enter the Buy order? At this stage I intend to enter the Market on Close buy order.
Cheers
Barry
Hi Barry,
Yes, the ASX Public Portfolio will enter FLT with a MoC order on the close this afternoon.
One of my private SPA3 Investor portfolios also had 1 vacant position. I trade that portfolio with an online broker that does not support MoC orders so entered FLT this morning.
Let’s swap this situation around. How would you feel if FLT was up 6% on the open? What price movement on, or soon after, the market open would make you feel comfortable?
These two loaded questions go to us thinking we do, or want to, know what will happen going forward based on what is transpiring now relative to what has recently transpired with a stock’s price movement. Our hardwired default thinking is to predict / anticipate / expect. Desiring a positive reward (James Clear, from Atomic Habits) so that we feel comfortable and safe and avoid emotional pain.
As you know, we can never know what will happen, so we have to disconnect with the future and disassociate with the past so we can stay in the now moment, the ‘zone’, and execute flawlessly.
Thanks Gary as we go along I am noticing I’ll always have an automatic reaction to these sorts of things and yes I agree the course of action is just to follow the system so I’ve entered my MOC order
Cheers
Barry