This week’s investor insight will make you think twice about the current stock and bond rally as we head into the end of the year.
We get a lot of questions about if the stock market has bottomed or if it is headed lower and how they can take advantage of the next Major market move. Over the next 6 to 12 months, I expect the market to have violent price swings that will either make or break your financial future. So let me show a handful of charts and show what I expect to unfold.
Let’s dive in.
We’re told that “quitters never win.” But is it always wise to stick with something when it no longer serves us or, worse, continues to harm us?
Many years ago, when Texas hold’em poker was big and online gambling was allowed in Canada, I used to run a poker league and build custom poker tables for people across the United States and Canada. I love poker, and I still play it to this very day, but the game does require skill, a proper mindset, and self-discipline. Without all three of these things, poker is pure gambling. It’s the same when it comes to active trading or investing if you lack the skills, mindset, and self-discipline.
Retired professional poker player Annie Duke, who is also a best-selling author, and decision strategist who advises seed-stage Startups, says that learning when to quit is a critical skill, especially for investors.
Annie states, “Quitting is a good thing when applied at the right time.”
If you’ve been following me for any time, then you know I follow a detailed trading strategy with position and risk management rules. As a result, you won’t find me taking random trades or trading based on emotions. Instead, you’ll find me patiently waiting on the sidelines for a high-probability trade signal to reinvest my capital.
I trade differently. I don’t diversify. I don’t buy-and-hope, and I don’t have any positions at certain times.
What I do is reinvest in assets that are rising in value. And when a particular asset stops moving higher, I give up on the position and exit it immediately. Because I use technical analysis to follow price action, we can quickly and easily determine if an asset is rising or falling. Therefore, I can step aside and let the asset fall and look for a new opportunity that is rising, or hold the falling position and ride it lower for who knows how long…
Unfortunately, most traders and investors do not understand how to read the markets, or they don’t have control of their money. They are at the mercy of what the market does or the skills of whoever controls their capital. Continue reading "You Better Know When To Walk Away" →
