At The Close by Moses Sanchez
Many people can be grouped into one of two categories.
I am an eternal optimist while my wife is
pessimistic and we complement each other perfectly.
Investors or traders need to know which category they
fall into and acknowledge it as soon as they get involved with
the market because it can have devastating effects on their
In late 2007, a colleague of mine ó letís call him Optimistic
Oscar ó was buying what he considered good deals. He
did his homework and analysis both fundamentally and
technically, and concluded that purchasing stock of some
quality companies prior to the holidays was a good idea.
Companies like Goldman Sachs (GS), Apple (AAPL),
Honeywell (HON), Research in Motion (RIMM), and Amazon
(AMZN) were solid companies, and I didnít think what he had
in mind was a bad idea.
From mid-September to mid-October 2007, Goldman Sachs
jumped $40 from $187 to $227 a share, and on a minor
pullback he decided to purchase more shares because as far
as he was concerned (being Optimistic Oscar), they were
going to continue going up.
Meanwhile, Research in Motion (the makers of the
BlackBerry handheld device), a company having nothing to
do with the financial industry, ran up from the mid-$80s to
$117 a share during the same time frame. Charting RIMM,
Optimistic Oscar figured as long as it kept breaking out, he
would keep buying on the pullbacks, and he did.