Research has found that fear can lead to poor decisions. And one of the worst things a trader can do is to regularly break their trading rules.
Easy game this investing business isn’t it? Always does exactly what you want right? Stocks always move in the right direction. Everyone is a winner. If only… The simple fact is every market has some pretty dire days. And anytime…
What a hit the Dow took on Friday. A 530-point fall. Any guesses for what direction our stock market heads today?
There is no doubt that world markets are in a unique, extreme period. Volatility is on the rise. You may have heard of the CBOE Volatility Index (VIX).
I explained my average winning trade was more than three times my average loss. This meant I was actually a very profitable trader.
We know that investing in the stock market is a thing that people do. We know that’s how a lot of people have made their fortunes. But many people still don’t realise that it’s not exclusively for people who have millions of dollars to start with.
Pay more attention to building and protecting your wealth. And if sometimes that means changing your investment approach, then so be it.
Over the long term, stocks do well. But in the short, there’s plenty for investors to worry about.
Many traders make this mistake. They place more value on what they’ve lost than what they still have. The urge to get back to even overrides the need to get out.
The market is telling you they have turned a corner. They’re moving up. In other words, they’ve hit ‘lift-off point’. You’ll see what I mean tomorrow.