Newsletter

December 16, 2006

Christmas Gift Suggestions

Recipe for a Happy New Year

Market & Sector Review
Reflections

Largest Changes In Raw Numbers (21 Days)

This Week's Economic Reports


Next Newsletter will be January 6, 2007
I will be taking some well deserved (IMHO) time off to reflect on the year just past and plan for the year just ahead. The Prudent Trader site will be updated nightly as usual. Allow me to wish each and every one of you - The Merriest Christmas ever and a Happy, Healthy, and Prosperous New Year!
Christmas gift suggestions:

To your enemy: Forgiveness.
To an opponent: Tolerance.
To a friend: Your Heart.
To a customer: Service.
To all: Charity.
To every child: A Good example.
To yourself: Respect.
- Oren Arnold
Recipe for a Happy New Year
Author Unknown

To leave the old with a burst of song
To recall the rights and forgive the wrong;
To forgive the thing that binds you fast
To the vain regrets of the year that's past;

To have the strength to let go your hold
Of the non-worthwhile of the days grown old;
To dare to go forth with a purpose true;
To the unknown task of the year that's new,

To help your brother along the road
To do his work and lift his load;
To add your gift to the world's good cheer,
Is to have and to give a Happy New Year.
Market & Sector Review
Reflections

This section as you already know is usually dedicated to analyzing the market and the various sectors that comprise it. This week however, as the year end approaches, I would like to talk more about personally (you) reflecting on the year past and planning the year ahead. Usually, but not always, the last couple of weeks of the year are quiet in the marketplace, a good time for us to reflect, to analyze ourselves, and to plan the year ahead. While no market analysis is presented, in my humble opinion, this is much more important for most, myself included.

If we wish to embrace the coming New Year we must first release the old. An important part of preparing for a New Year is to review the past year; release it; learn from it.

All of us have goals (I hope we all do) outlining where we wish to be at different times in the future. This is the time of year we need to review those goals; find out if we are on track or not. It is also necessary to do an honest self-analysis to clarify who we are and whether our stated goals are indeed the correct ones for us. Perhaps from the last time you wrote out your goals you have changed in some way that makes your previously stated goals out of date; they will, if that is the case, no longer lead to the determination and drive that was once there. As we end a year, it seems particularly fitting to devote some time to reflecting on the year past and where we find ourselves as the New Year dawns.

Below are questions that should stimulate your thinking for this process (Courtesy of Michael Angier). If you haven't heard of Michael Angier: "Michael Angier works with senior executives who want to build world-class companies and with people who want to do value-driven work." His list of clients is impressive: General Dynamics, Green Mountain Power, IBM, and International Paper to name a few.

Take these few weeks to reflect upon how you did, what you did, how you felt, what you liked, what you didn't like, and most importantly what you learned. Be as objective as possible approaching this exercise. Treat it as if you were writing your own biography. Feel free to add your own questions too. Editors Note: Do not ask and answer yourself based solely on finances. There is more to life than just money. Include Family, friends, and associates. Include your health goals; all the money in the world will not buy good health, this year get that physical you've been promising yourself for sometime now. This exercise may be more important than anything you can possibly learn about the markets during this time frame. How can you possibly understand the markets and not understand yourself?
  1. What did I learn about the markets, about myself? (Skills, knowledge, awareness', etc.)
  2. What did I accomplish? (List of my wins and achievements.)
  3. What would I have done differently? And Why?
  4. What did I complete or release? What still feels incomplete to me?
  5. What were the most significant events of the year past? List the top three.
  6. What did I do right?
  7. What do I feel especially good about?
  8. What was my greatest contribution?
  9. What were the fun things I did?
  10. What were the things that were not fun?
  11. What were my biggest challenges, roadblocks or difficulties?
  12. How am I different this year than last?
  13. For what am I particularly grateful?
Do yourself a favor, don't just glance over the above questions and toss them away. Take out a notebook, or a pad, and begin writing, answering these and other questions as best and honestly as you can. Don't do it for me or for anyone else, do it for you!

At this time release what you don't want as well. If it's something material that has served its purpose, give thanks for the purpose it served, then give it away to someone who can use it. Don't have someone in mind; give it to the Salvation Army or Goodwill. The next step is to list what you DO want … experiences, knowledge, material things, relationships, and your health, whatever. This is the beginning of the road map that will take you where you wish to go.

Use your year-end as a time to reflect, learn and grow. Work on your trading plan. Don't have a trading plan? Put one together now, not in your head, but on paper to review as the year goes on. This will prepare you for a positive New Year ahead.

One of the many things I am thankful for this past year is meeting and getting to know Charles Kirk of The Kirk Report, I read it all the time. Several of our members are also supporting members there as well. The feedback I receive is most often: "I can't believe how much I'm learning". This past Tuesday Charles quoted an article from Investment Advisor Magazine, which is very much in tune with this week's newsletter (link below).

From the editor of Investment Advisor Magazine: At the end of the year we often look back and assess how we did—our accomplishments and even our failures. A more helpful approach both in building an advisory business and in providing meaning and purpose, however, may be to look forward, not back, in order to prioritize your goals and plan your activities to meet those goals. In his latest contribution to Investment Advisor, Strategic Coach Dan Sullivan describes in specific detail a procedure to set those priorities now, when they’ll have the biggest impact. Beyond setting priorities, Sullivan suggests a down-to-earth way to keep those priorities literally in front of your nose throughout the year, allowing you to stay focused on what's important, and to feel satisfaction and fulfillment from the gradual achievement of your goals week by week.

Link: The Top Ten -> Identifying your top 10 priorities for next year now will provide guidance for the journey and eventual satisfaction
Largest Changes In Raw Numbers (21 Days)

This Week's Economic Reports

Merry Christmas & Happy New Year!

Bill

Disclaimer: Trading in securities, of any type, may not be suitable for all individuals. The contents of this newsletter are not a solicitation to buy or sell securities. The opinions expressed are solely that of the author. You must do your own research, contact your own financial advisor for suitability of any investments. Data gathered is from sources believed to be reliable, but NO guarantee as to their accuracy is made.