Wednesday, September 12, 2012

Nothing To Write Home About

Markets have been so mediocre that there has been nothing much to write home about. Investors and traders must have the mindset that its OK not to be buying or selling shares sometimes - we are not that brilliant that we MUST buy or sell shares all the time.

More than anything else, if your holding period is less than 6 months, the TREND IS YOUR BEST FRIEND, and in many instances, your only friend. If your holding period is less than 6 months, no amount of brilliant analysis or technical software will allow you to trump the market better, you need the TREND to be your friend. 

You will make more money by being silly and follow the trend when its bullish and pull out when it reverses. Trouble is too many know when to go in, but too many do not know when to go out especially when they are way in front. Making money from the market makes one think one is really smarter than they really are - and that is the truth time and time again.

1 comment:

bruno said...

Whenever the Dow rallies near 13300,traders have been fading into the last five or six rallies of a couple hundred points.But the bulls just refused to go away.This market just want to go up.Maybe the German court ruling today and Fed decision tomorrow will settle this issue once and for all.

The easiest ways for traders is to take profits early and ride their losses till kingdom come.Especially commodity traders.Most of these traders will never surrender and cut their losses as long as their bank accounts are able to fund their margin calls.Most of the time they call it a day is when their trading accounts are busted.