On the road to financial success, there are many pitfalls. Some are worse that others, for example having a spendthrift spouse, becoming a gambling addict or experiencing a prolonged health crisis can put you in a financial bind.
A problem I’ve had in the past was daytrading. I’ve always enjoyed stocks and my wife and I had some initial success trading the Hansens Natural Corporation (HANS). But, after our initial success with HANS I became overconfident and began to daytrade. After a while it got to the point where I was making trades that weren’t all that smart.
The solution ended up being cancelling my subscription to Investors Business Daily. IBD is a wonderful paper and offers a number of good investing ideas. However, I’d read the paper on my commute to the university, and as a result I’d think about stocks all day. After I cancelled my subscription, I haven’t been as focused on trading. As a result, have been trading less and more importantly, have been loosing less.
Best,
James
