I was watching the Bourne Ultimatum yesterday and a line from the CIA’s deputy director hit me:
“You know my number 1 rule: Hope for the best, plan for the worst.”
That’s excellent trading advice, even if it comes from a villian. Most people don’t have trouble with the first part of that sentence – I have friends who practice “buy and hold” strategies and hope like mad that their fundamentally-sound stocks will go up. Some of my strategies last year involved having upside targets that I hoped like hell would be hit.
But planning for the worst takes a lot more effort: It’s essential that I’m absolutely clear of what I’m going to do in every scenario of price movement: up, down, sideways, and of course, black swans.
Something to think about when I start intensive research on probably late Monday or Tuesday.. I’m excited to see what Neuroshell can do.