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News Main
Being Right, Or Making Money?

Publish Date : 5/25/2007 6:10:00 PM   Source : Investments and Finance News Onlypunjab.com

When a market timer (or any investor) makes a trading decision based on a news event, fear of losing out on a rally (or fear of losing money in a sell off), even the neighbor's trading tip, he or she is trading on emotions.

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. Because 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. 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.

By having, and following absolutely, a finely tuned trading plan that capitalizes on "trends" in the stock market.

Traders and market timers who have a strategy for entering and exiting positions, and who follow their rules, on a timely basis without hesitation, "DO" 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 Traders and 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 uses that very same daily information and creates unemotional buy and sell decisions that, over time, will make even the most emotional person, a successful (profitable) market timer.

We provide the plan. All you need do is follow the signals. And following the signals is the key to being profitable.



Onlypunjab.com
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