The above chart shows the BHP share price over the past twelve months. See that high in March, followed by that dip in April, and the high in June, followed again by a dip in July? Or that even higher high in September, when the shares reached an intra-day high of $68.77, only to drop again below $60 afterwards?
Did I sell out high in March and buy back low again in April? Did I sell out high in June and buy back low again in July? Did I sell out in September and buy back low when they dropped below $60 later? Of course not!
That's what they taught you to do in those Day Trading Seminars that blossomed all over the country some twenty years ago. It's called the "Hindsight Trading Method", and it always works, but only in hindsight.
We would all like to follow Harry Hindsight, the best trader in the world, but he's always one step ahead of you and you're on your own.
I am still sitting on my BHP shares which are steadily increasing in value while I collect their twice-yearly dividends. (I was going to write 'bi-annual' to make it sound more impressive, but to some that may mean 'twice a year' while others subscribe to the meaning 'every two years'.)
It's the regrets you're having when you're not having regrets.
