A couple of emails last week raised some alarm bells for me about the possibility of readers taking the content of my articles as 'advice.' This is just not the case.

Our columnists are all trained analysts and their aim is to provide training, using recent real examples to illustrate their point. Nothing more than that.

In my editorial I aim to provide an element of training and more often than not to provide another point of view. That challenges my own position on various matters and for those open to a different point of view, it may do so similarly for those readers. I do not claim to be absolute in all my perspectives and I am sure most readers can understand that, as rarely is one right all the time.

I can say that one of the biggest misnomers in investing is thinking that there is a 'right or wrong.' I am talking here about feedback you might provide to yourself after a successful or failed trade or trades. Castigating yourself for being so-called 'wrong' or heaping excessive praise on yourself for being 'right' will, in my view, bring about your own undoing.

I have studied the 'masters' and I cannot think of one who has not made a very bad call. In fact I believe that making a bad call has helped make them all extraordinarily successful.

In fact, I can say that it was a bad call that actually focused me so sharply on market analysis and, in particular, technical analysis - especially Elliott. I consider myself very fortunate to have made such a discovery.

So it is not useful to judge yourself too sharply. But it is an even graver sin to judge others - 'you were wrong' or 'you were right.' I am sure you can understand that without me elaborating.

Through my own experience learnt from the 'school of hard knocks' I have come to understand that managing personal emotions is paramount.

I have the view that there is an inverse relationship between success in the markets and personal negative emotions. It is almost impossible to win most of the time if you are negative. At some times it can be tough enough to get on a winning streak without pulling yourself down!

I see my own investing and trading not as being right or wrong, but rather as making money. To me, that is all that matters.

I distinguish between trading and investing because sometimes I like to buy for the long term - although I say that with some caution as that strategy has brought many down in this modern era. I trade when I have the time and when I want to assertively work the markets. This could be because I like the way the market has taken 'shape' at a particular time, but it is very important to wait patiently for such opportunities. But in those times, a lot of money can be made!

At TTN one of the reasons why we say we don't give advice is because to do so would work against our charter of 'teaching to fish' rather than 'giving fish.' I am sure that you can readily distinguish between the two. The former puts you in command and enables your skills to grow and hopefully your wealth.

Always keep in mind that an essential element to learning how to fish and then going out to fish is to take responsibility for your catch - or lack thereof.

Enjoy the ride

Tom Scollon
Chief Analyst
Trading Tutors Team