Sitting tight...

Many investors who were slow to act as the leading stocks such as DECK, SNDK, LCC and so on were breaking out are now wishing for a pullback or consolidation in the leading stocks before they enter. However, had they been long these stocks I do not think they would have wished for the same. Although DECK does look overbought right now I still believe that it has a lot higher to go on account of the fact that I think the markets are now in a new uptrend.

So in the words of old Partridge from Reminiscences of a Stock Operator, "my dear boy, if I sold that stock now I'd lose my position; and then where would I be?" Jesse Livermore also said, "In a bull market your game is to buy and hold until you believe that the bull market is near its end." These principles are essential to the success of position traders but they are much harder to adhear to than you think. When ever you are long a stock and seeing a nice profit the temptation to sell is stronger than ever. Especially when you hear headlines such as retail spending decling in May or Best Buy reports lower than expected earnings or some prominent analyst claims that the markets are too overbought and a pullback is very likely. However, I have been a victim of selling too early and know from experience that sitting tight when the tide is bullish is the right thing to do.

So I continue to sit with my position in DECK until I believe that the tide in DECK or the market indexes has changed. Until then good luck and good trading!