Subscribe to Our Free Newsletter
 


HOME
LOGIN
SUBSCRIBE

Strategy Information

Subscriber's Q & A
Pro Timer Strategy
Conservative Strategies
SmallCap Fund Timer
Bond Fund Timer
Gold Fund Timer
Sector Fund Timer
U.S. Dollar Fund Timer
ETF & Stock Timer
Stock Market Timing
Testimonials

Subscriber Reports
WEEKLY COMMENTS
Editor 's Report
ACTIVE STRATEGIES
Sector Fund Timer
SmallCap Timer
Gold Timer
CONSERVATIVE
Conserv. S&P Timer
International Fund Timer
Conserv. REIT Timer
Diversified Timing Port.
AGGRESSIVE
Bull & Bear Timer
ETF Timer
Bond Timer
U.S. Dollar Fund Timer
Stock Timer

About Us
Subscriber Support
Email Policy
Terms of Use
Privacy Policy
Prior Commentaries
Editor's Blog
Site Map

Subscriptions
Free Two Week Trial
Free Timing Newsletter

 
 


  •
      Weekly Report from the Fibtimer Stock Market Timing Services


Emotions And Trading

As described in "Reminiscences of a Stock Operator" by Edwin Lefevre, "The speculator's deadly enemies are: Ignorance, Greed, Fear and Hope."

Each of us has a desire for success. It is why we here at Fibtimer.com use market timing to guide us to profitability. Market timing not only increases our gains in bull markets, but also protects our capital against loss in bear markets.

But if you are not careful, that same desire for success can stand in the way of your ability to recognize reality, even if it is right before your eyes.

Hoping For Success

All of us have a survival instinct that typically causes us to focus on good news. Bad news is avoided, or at least put on the back burner.

When we take a position in the market, whether bullish or bearish, we "hope" it will be successful. Hope can be such a powerful emotion, that when the same trading plan that told us to enter a position originally, reverses and tells us to exit immediately, our emotions may very well focus on the possibility that if we just hold on a bit longer, any loss might be erased.

Just give it another day. Just wait till it is back to break even.

The only way to avoid this is to recognize that hope can destroy our ability to profitably trade the markets.

Successful Market Timers Win Because...

Market timing, in fact all trading, cannot be successful without a "plan." Trading by emotion, by news events, or out of fear, is not very different than gambling.

 

Fibtimer FREE MONTHS Offer!

Conservative S&P Timer
Ranked #1 on TimerTrac.com
Bull & Bear Timer
10 Year Results

Fibtimer Timing + 432 %
3 Year Results
 Fibtimer Timing  + 97 %

Sleepless nights as your investments are consumed by a volatile Wall Street? Consider Fibtimer 's trend trading services. Our trading plans are unemotional and are always invested with the trend, which ever way it is headed.

Fibtimer 's timing strategies MAKE MONEY in BOTH advancing & declining markets. No more sleepless nights. No more upset stomachs.

We profit year after year after year. In fact, we have been timing the markets successfully for over 25 years.

Join us and start winning!

We are currently offering 2 or 3 FREE BONUS months to new subscribers.

Special Offer - CLICK HERE NOW

 

We all know that no person (trader or market timer) will be right all the time. Knowing this, we must accept that we will have losses.

What separates the winning traders, from the losing traders, is their ability to recognize that when a trade turns bad, there is no emotion that can fix it. The only correct decision, is not really a decision at all. If you are following a good trading strategy, just follow the "plan." If the plan says reverse, then follow it. If the plan says to go to cash, then go to cash.

Simple? Not if you cannot accept a loss. Then hope springs eternal. You can find a hundred reasons not to execute a trade. Anything to delay so that "hope" can work miracles.

Winning market timers have their share of losses. But they keep the amount of those losses small. They follow their plan and "never" hold onto a losing position "hoping" it will break even or turn into a winner.

In Vegas The House Always Wins

When we go to Las Vegas, we know that the odds are stacked in favor of the house. But we gamble anyway in "hope" that we will leave a winner.

But market timing is not gambling. When you trade with a "plan" you have an edge that you know will win over time, as long as you use discipline and follow it. Just as "the house" knows it will win over time in Las Vegas, the trading plan provides the "edge" that makes us winners.

But once we lose that edge, and start hoping instead of following our plan, we become like the gambler in Vegas.

And in Vegas, the house always wins.

Hope and Your Ego

Hope is also closely tied to ego. We do not want to admit that we have made a mistake. Our ego wants success, and wants it immediately.

Losses do not feel very successful. Our ego can cost us a great deal of money.

In order to make money, we need to keep losses small, while letting our winning positions run. Neither hope nor ego has any place in market timing or in any form of trading.

Conclusion

When you trade with a "plan," it is in black and white. You know when to execute a buy or sell signal because the "plan" tells you when. A plan does not rely on hope. A plan has no ego. A plan gives us, as market timers, an "edge" over the market and other traders.

Each day we should examine ourselves. If we feel that hope is part of our trading plan, remember that hope is almost a guarantee of losses.


Recent articles from the Fibtimer market timing services;



© Copyright, 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.


Top of the page


 

© Copyright Market Timing Strategies Inc All Rights Reserved

Design by LightMix