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It's natural to look back. We live in the past.
For most people, the future isn't an unknown full of unlimited opportunity. It's about hoping the bad stuff in our past isn't a prelude to the future.
But what about the stock market?
2013 was a spectacular year – at least for stocks it was. And already people are afraid about the future. They're afraid that after a great year for stocks, the bloom is off the rose.
Are people naturally pessimistic? Are they afraid of the market?
The answer to both of those questions is, unfortunately, "yes."
I know because I used to be one of those people. But not anymore, though… not for a long time.
Here's what I know now…
I Chose to Be Optimistic
I make money in the markets because I'm not pessimistic. I make money because I'm optimistic, because I'm optimistic about making money.
The past is the past. I've had my share of bad stuff, some so bad that I can't believe I made it out the other end, that I didn't break down and give up… on life. But I realized a long time ago that it's up to me. I decide what happens to me. And I learned that because I was being pessimistic, more bad things were happening to me.
When I realized I actually had a choice and the choice was all mine, I chose to be optimistic. I finally got it that the past wasn't coming back. It was the past. And I wasn't going to let it be my future.
That was the start of my success.
I'm talking about being successful in life – and that also means being financially successful.
There's money to be made trading markets – trading any of them or all of them. And it's impossible to be a successful trader or investor if you're pessimistic.
Sure, we all get down when we lose money.
Here's the difference between being a pessimist and an optimist. A pessimist thinks the past is his future. An optimist looks at the past, specifically our losses and our failures, and learns from them. With the best lesson being, there will always be losses and failures. That's life. That's life in the market.
And life is pretty good now.
We're Going to Make a Lot of Money in 2014
I'm optimistic about 2014 being a banner year, financially. That's because the market had such a strong 2013 and I am optimistic it can go higher, a lot higher, as in a LOT higher.
That doesn't mean it will go up in a straight line. That's not likely.
After all, there's "stuff" out there bugging economists, analysts, investors, and me too. There is stuff to worry about.
There are the Federal Reserve's extraordinary efforts to manage interest rates, so that the short end of the yield curve is zero and the long end (the 10-year is now the most watched benchmark) is 3%; meanwhile, the 30-year Treasury bond yields about 3.92%.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.
Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.
Shah is a frequent guest on CNBC, Forbes, and Marketwatch, and you can catch him every week on Fox Business's "Varney & Co."
He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.