Mistake #3
Exiting Early
Some of the best parties you missed are ones you left early; some of the best concerts you never heard, because while the third encore played, you were beating the crowd out of the parking lot.
And some of the quickest 50% profits you’ll miss are because you got out a week early.
Have you ever heard the old adage “you never go broke taking a profit”? Complete and utter hogwash. Be patient… that last 50% will be a sweet reward.
Mistake #4
Staying on the sidelines because of market uncertainty
Many investors refuse to realize that uncertainty is a natural condition. There is ALWAYS uncertainty!
By focusing on the intermediate term at Trader’s Advantage, we don’t try to forecast too far into future. Instead, we try to thoroughly understand the here and now, and then leverage logic, history, research, experience and intuition to make our money. We think of this as a matter of predicting the present.
My goal is to help you monetize technical, fundamental, economic, thematic, cyclical and even pop culture observations by profiting from sharp movements in various investments in a relatively short amount of time. We could hold stocks a matter of days, or as long as three months.
It’s been a tough stretch for many investors, but our approach allows us to adapt quickly and take advantage of opportunities in all market conditions. That’s why I stay in frequent touch with my readers via email, telling them which strategies we need to employ to make our money and minimize our risk, and giving them the specific trades to make it all happen. I invite you to join us today.
Mistake #5
Not Using Technicals AND Using Fundamentals
Fundamental investors hate technicals; chart traders laugh at investors who rely on fundamentals. Both are wrong to exclude the other. In espionage, you use every piece of intelligence you can lay your hands on. The technical rules are simple. We apply them rigorously. The fundamentals, likewise, are easy enough to uncover. We use both to pick winners.
Mistake #6
Getting Scared Off by One-Day Moves
Let’s say that your outlook is bullish and you get a down day in a profitable position. Add to your position. And the next day is a down day. Add to your position. Continue to add to your position on down days as long as the market trend is still pointing higher.
Obviously, the reverse is true if you are short.
Do not panic and bail out because of a few days that go against the primary trend. We’re going to see a lot of continued volatility in the market. Use those days to your advantage.
Mistake #7
This Is Not an Investors’ Market!
Confidence remains extremely fragile, not just for long-term investors but for traders, too.
The fact is, many investors have turned to trading precisely because they have little confidence in the “system.” They want to play this market close to the vest.
They discount the future but can see opportunity in the very near term.
In short, no one believes this rally means the worst is over for the stock market or the economy, but that’s not stopping smart investors from making a ton of money in it—including my Trader’s Advantage members!
Remember, capital preservation is key, but you must be ready to make money on rallies. Who cares if this is a “false hope recovery rally…” make money from it, then get out and spare yourself the next round of decline. Wash, rinse, repeat. We’ve done this time and again in Trader’s Advantage. Make sure you’re with us for the next round of profits!
