About JC Parets
I grew up in Miami, FL and I graduated from Fairfield University with a degree inFinance and immediately started paying my dues. After growing up in Miami, I spent 15 years total in New York City and the surrounding areas. I lived in Fairfield, CT and Hoboken, NJ until ultimately moving into Manhattan in 2006. Currently, I am living in beautiful Sonoma Valley, CA. It’s wine country here an
d pretty incredible weather all year around. I’m a quick drive to Lake Tahoe or down to Monterey. I’ve been here since September 2015 trying to focus 100% of my attention on growing this into something really special.
But this didn’t happen overnight. The whole technical analysis thing first started for me back in 2005 when I realized that I didn’t know anything about the stock market. What scared me even more was that there were people sitting around me at work that were twice my age, and in some cases 3 times my age, that swore up and down that they had a handle on the market. I guess I was just lucky at the time to be aware enough to realize that these guys didn’t know anything and were doing themselves and their clients a disservice.
Yogi Berra once said, “When you come to the fork in the road, take it!” For me this fork was essentially fundamental or technical analysis. Do I want to study for the CFA and learn about companies? Or do I want to study for the CMT and learn about the stocks and the market? It seemed like an easy choice at the time but little did I know how important that decision would eventually become and how much it would impact life.
Half way through John Murphy’s Technical Analysis of Financial Markets I thought I was the next Paul Tudor Jones. I was day trading options based on MACD crossovers throwing back sandwiches from Fiore’s in Hoboken, NJ two at a time.
Anyway, the point is that I had a lot to learn. There was some good news and that was that I didn’t have much money at the time. So how much could I really lose? Veterans in this business will tell you that the money you lose trading early on in your voyage is your tuition. You don’t learn this stuff in school. You have to go out and figure it out on your own. That costs time and money. This is your tuition. I truly believe this to be the case and would tell that to anyone new to trading and investing in publicly traded and liquid markets.
Fast forward to 2008 and I have now finished reading the curriculum for all 3 levels of the CMT program as suggested by the Market Technicians Association. It didn’t matter that I passed all 3 levels, I already thought that I knew everything there was to know about the market. Well, wrong again. I needed a few bull and bear market cycles to really wrap my head around the fact that I don’t know anything at all. No one does. The market is going to do what it wants and it doesn’t care what any of us think, especially me. It’s the Socrates quote: “I know one thing: that I know nothing”.
So now that I’ve figured out that I can’t tell you what will happen next and no one else can either, it’s been an evolution of a process. I can’t predict the future, but I’m willing to bet that the evolution of my process is not yet complete. It’s something that I will continue to adjust as time goes on, hopefully for several decades to come.
My timeframe is simple: I look out weeks and months. I am not a day-trader, but I also don’t care what happens next year. It’s an intermediate-term time horizon. Not long-term and not too short-term either.
The market has taught me, the hard way, to check my ego at the door and always remember that none of us know anything. It doesn’t matter how loud they get on TV, how many blog posts they write about a subject, or how long they’ve been the Chief Strategist of **fill-in-the-blank** sell side wall street firm, they don’t know anything that you don’t know about what will happen tomorrow or next year. This is a fact. So it all boils down to how well you manage risk. Remember, it’s not about being right, it’s about making money.
J.C. Parets has had his work featured regularly on Bloomberg, ABC, Wall Street Journal, CNBC, Fox Business, Yahoo Finance, Barron’s, CNN and Canada’s Business News Network, among other media outlets and is a regularly featured editor on Big Market Trends.