Never make a trade for trading’s sake

Strange feel to the trading this morning, and I’m betting that’s there some sort of a much smaller computerized/high-frequency-trading shenanigans going on out there. A couple weeks ago Knight Capital had a computerized glitch roil hundreds of intraday stock prices, and this just feels like another strange move this morning. Not that any of that is game-able or that any of that changes our thesis and set up.

I find personally have a bit of a restless trigger finger this morning and that’s worrying me. What’s the reason behind wanting to make a trade? As I search my motivation, I determine that it’s mostly me wanting just to do a trade for trading’s sake. And that’s not a long-term winning strategy. I’ve worked way to hard to build my portfolio up in the way that I’ve got it here for me to start trying to simply chase shiny objects around the room because I’m bored.

You trade for one reason and one reason only — because the risk/reward is favorable. Got it?

So no trades for me today.

Some of you have asked how to decide which stocks to get started buying first —  if I were still looking to buy something right now, I’d stick with the highest-rated stocks in the portfolio, like Google, Apple, FIO and Facebook.

I cover a lot of this in the new Everything You Need to Know About Investing book that you guys get for free. You can get the book by clicking here or you can simply email us at support@tradingwithcody.com and ask for it.

And I thought some of you would write me a review on Amazon…click here to leave your review.