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The Search For Overnight Riches
Many novice market timers (traders
and investors) have difficulty facing a cold, hard fact
about the stock market: You can't get rich overnight.
Experienced timers know this. They expect to make big profits
in the long run, but they focus on making as many reasonable
profitable trades as possible. They do not focus on a single,
life-changing trade.
Many timers also realize this, but it is hard to accept. And some are initially
drawn to market timing with the hopes of making big profits... Quickly!
Money that can be used to finance a luxurious, exciting lifestyle.
Or money that can be used to show family and friends that one is deserving of
envy or respect.
However it is dangerous to approach trading in the financial markets from this
perspective. It directly contradicts the fact that it's going to take some time
before one makes enough money to support a new lifestyle or to impress others.
What's Wrong With Dreaming?
What's the harm in dreaming of making big riches? Nothing, as long as you realize
that "quick riches" is just a fantasy. If you don't, you may want to act on it.
| "It's
vital to your very survival, when trading the financial
markets, that you keep the proper perspective." |
If you dream about how big wins can change your life, you
may start to want to make extremely huge profits...fast.
If that happens, you may be tempted to start taking measures
to make those big wins, by ignoring tested timing strategies
which provide long term profits, plus risk management to
safeguard your capital.
You may take riskier trades with the hope of being lucky
enough to triple your capital. Or you may be tempted to
stray from your timing strategy because you are "certain" you
see the potential to make a big win. This is the first
step to disaster for any trader, whether a novice or experienced
professional.
You may even abandon all risk controls because you may start to think, "Unless
I can make some big money fast, market timing isn't worth it anyway."
The "get rich quick" urge is felt by all market participants. After all, we
are there to make money! But this particular urge must be ignored if you value
your savings.
Going For The Big Win
It's important to stay modest. It is unlikely that you will
be lucky enough to be set for life after only a few big trades.
You will have to stay with the timing strategies for year after year, just as
all seasoned, successful market timers have done.
| "...realistic
goals, discipline and a good market timing strategy are the only things
that will help you become a consistently profitable market timer." |
It's vital to your very survival when trading the financial markets that you
keep the proper perspective.
Someday you may very well be wealthy and have an exciting lifestyle, but it isn't
going to happen tomorrow, or in the next year.
Sticking With A Strategy
For now, just focus on the process of sticking with the strategy through good
times as well as bad times. Recognize that this is a process that takes years
to complete. No one creates instant wealth from trading (except for Dan Ackroyd
and Eddie Murphy in the movie Trading Places).
You must stand the test of time to succeed. When you take this perspective, you
will be satisfied over time and realize that you are among the select few market
participants who have found the path to profits.
When you have traded a proven timing strategy for a few years, you will realize
solid profits, and maybe over time, you will even make the kind of money that
can fulfill your grandest dreams.
But for now, realistic goals, discipline and a good market timing strategy are
the only things that will help you become a consistently profitable market timer.
Recent articles from the FibTimer market timing services;
Trading Trends For Profits
Investor or Trader... Which Are You?
Wishing Upon a Star
Market Timing Facts vs. Market Timing Fiction
Buy-And-Hold? It Works...If You Have 40 Years Or So
Successful Market Timing With FibTimer
Job Search: Market Timer Needed
The Perfectionist Trader
Focus On The War, Not The Battle
Quick Profits vs. The Virtue Of Patience
Reaping Rewards Over Time
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© Copyright 1996-2010, Market Timing Strategies, Inc.,
All Rights Reserved.
FibTimer reports may not be redistributed without
permission.
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. |
