Successful Investing; Never Follow the Crowd

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Successful Investing; Never Follow the Crowd

Successful Investing: The Trend is your friend

To succeed in the markets, you need to have control over your emotions. However, this is not achieved via force, for that never works in the long run. One has to come to the self-realisation that emotions are useless when it comes to investing. How is this achieved? Primarily, via self-observation and the secondary factor, is via reading the right books. We have provided a list of books in the passcoded section of the website. One way to fast track the enlightenment process is to view the stock market as one giant video game.
What is the biggest tragedy in one’s life? Your death. Yet, does one sit and obsess over this fact every single day. No one deals with because one understands it’s inevitable. Thus, it’s quite interesting, almost fascinating that individuals can’t come to the same conclusion in terms of corrections and crashes. The market will inevitably crash or correct sooner or later, but before the crash, the masses are always euphoric. Once in a while, as was the case recently, the massive correction is engineered.

Successful Investing: view crashes through a bullish lens

As a market crash is eventually inevitable, so is an enormous recovery; in fact, the recovery phase is stronger and more rewarding than the crash phase. But the masses will never focus on this; they will focus on how the market could trend lower, and why it’s not the right time to buy yet, or why it’s different this time and a host of other rubbish that makes no sense. And when the markets eventually surge to new highs, these penguins will look back in horror at how they did exactly what they promised they would never do again. The sad part is that while they will make the same promise again, they will react in the same manner the next time the market’s pullback.

 

Coronavirus provided Tactical Investors with an unbelievable opportunity

cash rules

Weekly flow data from Bank of America Corp. and EPFR Global continue to show a clear investor preference for money-market funds. Assets under management in this category have swelled to $4.5 trillion following seven weeks of inflows that added $877 billion to the cash pile. Bloomberg

Successful Investing: Be Jubilant when the Masses Panic and vice versa

Thank goodness for the mass mindset for as they seek safety, we will do the opposite and keep buying. These brilliant minds are holding 4.5 trillion in cash, what a feeding frenzy this will create when these enlightened (us being sarcastic) individuals finally realise it’s time to jump in. Market Update May 2, 2020

Investors in China poured more than $141 billion into domestic money-market mutual funds in the first quarter, bringing the sector’s total assets under management near a record high. https://yhoo.it/3bTuu0y
The same phenomenon is occurring in China, indicating that distance is not a limiting factor when dealing with the mass mindset. The more the crowd derides this market, the happier you should be.

dash to cash

Shortly after this stampeded the markets bottomed. Mass psychology in real-time. We hope your chaps kept a trading journal as suggested, for this crash will be remembered as one of the biggest B.S crashes of all times. Or if we put in terms of Aesop’s fables. This is a turbocharged version of the boy that cried wolf one too many times. Market Update May 2, 2020

 

The masses are totally clueless, they panic when they should not and when they should they buy like there is no tomorrow. The herd is flocking into money market funds just when they should be buying everything in sight.

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