Because you are doing the same thing that everyone else is doing. You have to go against the crowd to make money. Let me give you an example. During the housing crash in 2008 everyone was selling because of the fear of loss which further drove down the prices in a downward spiral. Fear. No one wanted to lose money. So no one was buying which drove prices down further. In 2005 however with easy signing terms and the prices of housing going up, up, up, it was very hard not to get into the bubble due to greed. It is hard to leave money sitting out there on the table. You want some of it.
See the pattern? The public are lemmings. They move instinctivly with one another and at times all pile off the edge of a cliff. What if you went the other way?
Thats where the money is. In 2005 when everyone is buying, either sell or wait it out. This is hard to do because you are ignoring that voice screaming in your head to buy or you will lose out on gain. Then when there is blood in the streets due to a crashed housing market and prices are down 45%, thats when you step in and buy, again ignoring the screaming voice in your head that you are going to lose money. You then hold for a few years, the house jumps in value 50%, and you sell.
This is how I trade. Stay tuned right here as I am about to release a free ebook on how I pick my stocks and trade the indexes for permanant long term profits. It will be an invaluable teaching tool for you. And if you are already a good trader, feel free to give my ebook to someone who needs it.
E book on the way, will be posted to this site with the download link.
Have a good afternoon and weekend!
Tradinginsider
Friday, May 20, 2016
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Why are you not making money in the Stock Market?
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