November 27th, 2007: Happy New Year!!

Remember when you were in college, and you would set your clock ahead by 45 minutes to ‘trick’ yourself into getting up in time for class?

Today, we’re encouraging all investors to ‘trick’ themselves - think like today is the start of 2008. Pop some corks, throw some confetti - and reevaluate the information you base you’re trading decisions on – get yourself back on track to succeed.

As we embark on this New Year, keep in mind that there’s one simple investing mantra that separates the savvy from the inept:

Buy on Call, Sell on News.

Many investors seem unable to avoid the plight of piling onto a sinking ship. Not to overuse our boating metaphors, but, once a ‘call’ is in the news – it’s safe to say that ship has sailed.

Particularly in a world where investing ideas are sanitized and Cramer-ized – trading decisions are often hinged more on what has happened than what will happen. While that strategy might sometimes work in a bull market, the bears will eat you alive.

Unfortunately, many investors don’t have the discipline to resist the allure of a company that’s being hyped in the news. Particularly in today’s world where access to company information is so abundant, many investors mistake awareness [of a company’s present] for insight [about a company’s future] and as a result of the poor investment decisions that ensue, they are left with miniscule returns – or worse – losses.

This week, StreetBrains is hosting an event to help reset the focus for investors. Our ‘Ask the Analysts: 2008 Outlook’ panel will address some of the big calls our analysts are making for 2008 to help investors get out in front of the ball. The analysts will discuss what they are forecasting for their coverage sectors; what will happen to the economy; what will be different by 2009. These are the issues that seed lucrative trading ideas – not today’s Wall Street Journal headlines.

Thinking out ahead of the news – not following the news – is a tough tactic to constantly deploy when most of us find it overwhelming just to keep up with and digest the information that is current. But, discipline and great investment insights will be key to navigating the turmoil that will take place in the markets in 2008.

Here's to '08!