A loss can be viewed as a liability or as an inspiration to recover and gain twice as much. Sol Palha
Most common trading mistakes and how you can easily avoid them
A very common mistake that is made by novice market players is that they confuse the term stock market trading, with stock market investing. Then you have investors who confuse the term long-term investing with the concept of buy and hold. We do not believe there is anything one should buy and hold forever; there will always be something better you can put your money into in the future.
The Investor looks for trend changes, and buys early in the trend; he/she then rides the trend until it ends. One should learn the basics of trend analysis as it will help one determine when a new trend is about to start. Now let’s go back to the topic of Trading vs. investing. Stock market traders look for rapid short-term gains; they prefer to squeeze the maximum profit from stock, (option, or futures contract), etc., as opposed to being happy with the sizable gains they already have. This is known as the secret desire to lose syndrome. At least that’s the concept behind trading. Unfortunately, most traders end up losing more than they win, and even when they do win, they usually end up making less than the long-term investor.
A few traders do extremely well; these chaps fall into the 2% category of overall players. Their gains are huge, but for the rest of the players, a loss is all the can hope to look forward to. The investor, on the other hand, looks for a new trend and usually tries to get in right at the beginning of the trend. If he/she is more aggressive, they try to get in when that particular market is putting in a bottom and has been trending sideways for some time, indicating that the worst is behind.
Another common error is to confuse long-term investing with the rather falsely promoted policy of buy and hold. Long term investing is getting in early and selling when the trend is over. A classic example was the Internet mania of the 1990’s. The time to buy was in 1995 and 1996 and the time to sell was late 1999 and early 2000, hen many of the Internet stocks started violating their main uptrend lines. Those that bought the buy and hold lie found themselves to be even poorer. A more recent example was the housing bust and mortgage crisis that rocked the financial sector and produced a massive crash. The right time to get into housing was from 1999 to 2006. Yes, the Market did overshoot, but buying after 2006 was simply not a smart idea. From 2006 onwards, the smart player was selling into strength, such that by 2007 he virtually had no position in real estate. Trend Analysis, mass psychology and technical analysis would have kept you on the right side. We advised our subscribers to bail out long before the housing market topped out and we did the same during the internet bubble.
On the same token, we got our subscribers into the commodity bull well before the market started to explode. For example, we closed out our Silver positions for over 1000% in gains and Gold and Palladium positions for gains more than 700%. We are only referring to Bullion gains and not the gains we locked in many of our stock positions. We have now come up with the most advanced tool we have ever developed, and this tool would have produced even larger gains, were we in a position to use it earlier. This tool is so effective that since its inception it has an accuracy of over 95%. For more information click here Trend Indicator.
An example of the type of expert you should never listen to unless you want to lose your shirt, pant & underwear
This distinguished dude has been wrong so many times, that we have stopped keeping a tally. Fear is dangerous when it comes to the market; that is the lesson you should glean from this video.
We offer two services that cater to both the trader and the investor. The market update service will provide to both the Stock market investor, as it covers both long-term trades, and trades of shorter duration that will satisfy the needs of the trader. In fact, we have come up with two portfolios. The trend portfolio is for the long-term player (stock market investor), and the higher risk portfolio is for the trader looking for trades that are more aggressive in nature, with the potential to produce much higher gains. We will also soon be issuing option trades for the trader looking for even higher returns. For the investor who simply wants to identify the right trend and know when it’s safe to buy, hold or sell, the Market Road Map will be your best bet. The Market Road Map service will provide the Market Analysis section from the Market Update service. In this section, we provide both the short, medium and long-term outlook. Additionally, we inform you if should open new positions, sit on the sidelines or short the market. Click here for full details.
A critical concept one should learn when one seeks to enter the Stock Market, whether he/she is a trader or an investor is to learn the art of being a contrarian. In short, a contrarian investor does something that is totally the opposite of what the crowd is doing. Once more, we at the Tactical Investor have always been known for taking extreme contrarian views; sometimes even contrarians have a hard time digesting some of our views. On that note we believe right now, we are in a multi-year commodities bull market that is about to enter the second leg of this long-term bullish cycle. For those who missed the first leg up, this is your second chance to make millions potentially if you missed the internet boat and the first leg of the Commodities Bull. This bull market will dwarf the hyper bull market of the internet era. The sector that will see the largest gains will be the precious metals sector, with the Gold and Silver sector leading the way up. This is not going to be an easy stock market bull to play, those that fall for the buy and hold nonsense will watch all their gains vaporise during the massive pullbacks this bull will experience. For the record, the commodities market (Gold and Silver included) fell apart, and we got our subscribers out right at the top in 2011. Those that played the buy and hold game, well you know how they are feeling right now; the commodities sector imploded. Currently, we are looking for strategic entry points in the main segments of the commodities markets.
Another concept that is often forgotten and separates the stock market winner from the stock market losers is portfolio management. Portfolio management is essential it is one of the most important and most neglected areas when it comes to investing. Many a trader or investor who could have otherwise been successful ends up losing year after year. All the topics mentioned above are covered in much greater detail; all you have to do is click on the highlighted words.
Some of Past Market calls
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