Stay on Target

I've been getting hammered this last week. Last year I would have been sick to my stomach (and I was because I got hammered last summer too). This year, I've been able to look at things differently. There are a lot of people that are focused on the minute to minute fluctuations of the market (I am too--way too often). But when I am able to step back and look at the big picture, crummy weeks don't look so bad.

Charles Kirk linked to a good article about persistence. I'm learning that persistence is the key to making money in the stock market. When I dump a screen because it has lagged in performance for a month, I invariably end up losing more than I would have if I had just stuck with it for the long term.

If you look at my performance in 2005, you can see the result of constantly jumping from idea to idea, chasing good performing screens and dumping screens that were having bad weeks or months. In 2005, one of my screens made nearly 1,000%. I followed that screen for a few weeks and it tanked miserably during that time. I bailed and the screen went on to go nuts the rest of the year. I was petrified to jump back in because of the loss in that short period of time. My fear (and stupidity) kept me from doing well.

So, if you're having a tough couple of weeks like me, hang in there. Persistence pays off.