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Being Right, Or Making Money?
When a market timer (or any investor) makes a trading decision based on a news event, fear of losing out on a rally or of losing money in a sell off, or even the stock broker neighbor's trading tip, he or she is trading on emotions.
Wishing Your Were Right
Trading on emotions, news events, market rallies, etc. is basically trading on a WISH.
There is no basis for the trade, at least none that can be counted on to last. There is nothing but "the moment." The trader "wishes" he or she will be right.
Odds of winning? Slim.
Trades made on "wishes" have no plan behind them. There is no "exit" strategy. Invariably, the trade is held until losses become painful enough to force the trader to "emotionally" sell at a loss.
In fact, probably the worst thing that can happen is for a market timer to make a trading decision based on such an emotional event, and then be profitable the very first time!
Not that there is anything wrong with being profitable. But very soon that same trader will be looking at a losing trade, and the confidence of that first win is likely to cost him or her dearly.
Making Money
No one makes money on Wall Street without a trading plan. No One!
Sure, the person with an initial profit can feel great for awhile. And really, really long term investors, those who can afford to watch several bear markets whack 50% to 80% off their savings every 10 years or so, will eventually make money.
When we say long term, we mean 20 to 30 years! If you sit tight, you will likely make a profit. That is, as long as you do not panic and sell at a bottom. or become greedy and "double up" with margin (almost always at market tops). And, as long as you do not reach retirement age at the same time a multi-year bear market starts.
There is only "one way" to be certain of being profitable.
| "...a successful trading plan that creates unemotional buy and sell decisions will, over time, make even the most emotional person, a successful (profitable) market timer." |
By having, and following absolutely, a finely tuned trading plan that capitalizes on "trends" in the stock market.
Market timers who have a strategy for entering and exiting positions, and who follow their rules, on a timely basis without hesitation, make money.
Those who trade by daily news events, daily or weekly rallies & declines, and TV hype, will "always" end up losing money. Remember, for every winning trade in the stock market, there is a losing trade on the other side. Only those who follow a plan consistently make the winning trades.
One of the most important questions you must ask yourself is:
Do you want to "BE RIGHT" for a short time. Or do you want to "MAKE MONEY" for a long time.
Winning Market Timers Know the Secret
Ignore the news. Ignore the daily ups and downs. You have no control over them anyway. No one knows what the next day will bring. No one!
Wishing will not help. Watching the financial news religiously will not help. There is just no way to know what will happen tomorrow, or even what will happen next week.
But a successful trading plan that creates unemotional buy and sell decisions will, over time, make even the most emotional person, a successful (profitable) market timer.
We provide the plans. All you need do is follow the signals.
Note: Subscribers should make sure they know how each of our timing strategies works. For example; No mid-trade entries. Sector, ETF and Stock Timer traders should diversify (at least 8 and preferably more positions). Read the details and trading rules at the bottom of each report. They will help you build confidence in the trading strategy.
Subscribers who are new to market timing should not jump right into an aggressive timing strategy. Yes, aggressive strategies make large profits over time. But the more trades taken, the more small losses along the way. This is a FACT of trading the markets. If a couple of loses will make you quite the strategy, don't start it in the first place, or you may not be around for the profitable trades.
Diversify. It is not a good idea to place all your timing funds in one strategy. Consider three or even more.
We have created the "Diversified Timing Portfolio" just for this if you want a diversified strategy that is ready to go.
When you are confident, you will follow the signals. And following the signals is the key to being profitable.
Recent articles from the FibTimer.com market timing services;
Market Timing & The Desire For Immediate Success
Market Timing Discipline Equals Profits
Enhance Gains Using Market Timing And Diversification
Rules For Market Timing Success
Market Timers Wanted!
Focus On The War, Not The Battle
Controlling Impulses; Key To Market Timing Profitability
Trading With Discipline, Key To Market Timing Success
Instincts vs. Market Timing Logic
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All Rights Reserved.
FibTimer reports may not be redistributed without
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Disclaimer: The financial markets are risky. Investing is
risky. Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy or
sell any security. Opinions are based on historical research
and data believed reliable, but there is no guarantee that
future results will be profitable. |
