Investment Advice-Don’t listen to self Proclaimed Experts

Investment Advice-Don't listen to self Proclaimed Experts

The Best Investment Advice; Don’t listen To Experts

Do not listen to self-proclaimed individuals that claim to be experts, for they probably know even less than you. For the record, at the Tactical Investor, we never refer to ourselves as experts, but at most, we will use the term “advanced students”. A student is willing to continue his journey, while experts or masters stands still falsely assuming they know all that there is to know on a given subject.  Hence experts and masters are akin to bad students; they do not want to learn anymore.  Therefore if you visit popular sites take their data with a jar of salt and a shot of whiskey. In other words, don’t assume they have your best interest at heart.

Emotions are dangerous when it comes to Investing

One needs to understand that one’s emotions are the most dangerous instrument around when it comes to trading. Those that allow their emotions to the talking usually allow their money to do the walking. In other words, if one makes any decision especially a financial decision that is emotionally based, the odds are relatively high that the outcome is going to be far from positive.

Be open-minded and willing to learn new concepts; read some of the books mentioned earlier in the update and look at how individuals reacted during previous market crashes and what made them throw caution to the wind.  One can glean a plethora of data by looking at how the masses reacted to the previous end of the world type events. In every instance, you will find the masses always lost, they always bought at the wrong time, and their timing when it came to selling was even worse.

Technical Analysis: A Brief Overview

At the Tactical Investor, we use custom based indicators but the point is not to try to match what we do or others do,  but to understand what oversold and overbought entails.  Once you understand that concept, then you can play around with the settings, and this is discussed in part one of the trading manual.

Additionally, you do not have to use only popular tools such as  MACD’s and RSI; you can look for tools that appeal to you.  The idea is not to copy what someone else is doing but to use the concept as a basis for creating something that works for you. We have subscribers that don’t like the RSI or MACD’s; they have replaced one or both with other indicators and are quite happy with the result.

Tactical Investor subscribers are entitled to a free trading manual; the whole purpose of this manual is to teach one how to fish and not make one dependent on the trading style of another person.  Start slow, and as you practice, concepts that made no sense to you in the past will start to make sense, and from there the journey will speed up.

As far as the Tactical Investor is concerned, nothing is more important than Mass Psychology. If we forced to throw everything out and rely only on one tool, it would mass psychology. Fortunately, we do not have to do that, so we utilise Mass Psychology and technical analysis.

Other Articles of Interest

Why market crashes are buying opportunities

A clear Illustration of the Mass Mindset In Action

Inductive Versus Deductive reasoning

Mass Psychology Introduction

Mob Psychology Part I 

Crowd  Psychology II,

Herd Psychology III 

Comic Strip Illustrating Mass Mindset

Mass Psychology or Contrarian Investing

Stock Market Corrections-Nothing but Buying Opportunities