Don't try to buy the bottom or sell the top. It's incredibly hard to time the market.
How many times have you sold at what you thought was the top only to see the market head higher? And conversely, bought at what you thought was the bottom only to see the market erode further? Instead, focus on hitting that middle 80% of the trade.
It's OK to give up a little bit at the beginning and end of the trade to make a profit.
After all, a profit is a profit.
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The Gold Report: You warn investors against trying to time the market. If even experts don't know a bottom until it's behind them, how do regular investors know when to invest, when to buy the next tranches and when to cut losses?
Louis James: The wisdom of not trying to time the market is tried and true. Benjamin Graham said the same thing 60 years ago. I shouldn't have to defend this premise. Even though investors all know it, they fervently wish it weren't so; they just can't help themselves.
You can't time the market. A bureaucrat in Washington can open his mouth and send the price of gold up or down 5% in an afternoon.
Fortunately, we can look for value. Value tends to be slippery in the junior sector when you have a bunch of companies that, as Doug Casey famously says, are little better than burning matches. They have no income. Even the biggest players in the field are so volatile that Benjamin Graham would never touch them.
However, there are things that we can look for. We can compare companies to their peers. We can look at the ounces in the ground and see if something is out of whack. We can look at cash in the bank. The market is so beat up now that some companies with viable projects are trading for cash or less. It's actually possible in a market this beat up to make relatively low-risk acquisitions. Continue reading "Casey's Louis James Warns: 'Don't Try to Time the Market'"
Today the Trader’s Blog welcomes John Crane of Traders Network. John Crane has been an active trader for decades, and is the president and CEO of Traders Network - a firm providing brokerage services, educational training products and technology for today's intelligent investor. Articles on his trading concepts have been published in Consensus, Barron's, Technical Analysis of Stocks and Commodities as well as The Wall Street Journal, Investor's Daily, and Traders World. John has appeared as a guest lecturer at several national trade shows where he taught combines his highly acclaimed “Action/Reaction” market timing methods, using a selective set of Elliott Wave and Fibonacci principles to analyze the market action and future market swings.
To learn more about Swing Trading with Market Timing Intelligence click here.
Today he's going to talk about how traders need to understand how market structure can affect market behavior. Continue reading "Swing Trading with Market Timing Intelligence!"
Today we're going to be looking at the S&P 500 market. We last reviewed this market back on May 12th when it was trading at 908. Here we are two weeks later and the market is at 914.
That doesn't seem like a big move, but we've had some pretty big moves in the interim both on the upside and downside.
I think you'll find this new video interesting and informative. In addition to the two trend lines that I graphically illustrate in the May 12th video, I'll share with you today two other tech indicators that I've been watching.
You can view this new video with my compliments. There are no registration requirements. Please enjoy and give your feedback on our blog. Thank you.
All the best,
The SP 500 index is caught between two trend lines that are the dominant technical indicators right now for this market. If either gives way, it will point the direction of the next major swing.
You can view this new video with our compliments. There are no registration requirements. Please enjoy and give your feedback on our blog. Thank you.
All the best,