Monday, February 11, 2008

Are you seeing the Signs of the Market?.

It just goes beyond belief how many investors and traders alike give up so many profits trying to trade a market that is out of favor due to the fear of missing profits. Think of it this way. The market is like a highway to wealth if one understands how to navigate the roads, sorry folks no GPS is available. If one does pay attention to the signs that the market produces one can easily avoid trading the turbulent(S curves you cannot see around.) times and invest or trade when the market is somewhat safer.(Like driving on a flat highway were you can see traffic far ahead.) When you drove to work today how many Stop Signs did you use to travel in the right direction? Cannot remember? That’s ok, but if you were to go back and look and count you would be surprised how many. Think of the Stop Signs like warnings the market give investors and traders alike as clues when to exit and enter the market. If you were paying attention to those Stop Signs it was pretty clear that a meltdown was coming. Go back and look at November and December of 2007. Most stocks were starting to somewhat head down, (Stop Sign) giving you a chance to start reducing your exposure to the market. Then on 01/04/08 the market sent a big billboard (Stop Sign) that for the next few months will be tough to say the least. So When Trading the market, pay attention to those Stop Signs or Clues that it produces, for it will help keep your portfolio vehicle on the road and free from any road rage…

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