Wishing Upon a Star
If you had a million dollars, what would you do?
You wouldn't have to ever work again. You could just sit on the
beach and relax. You could pay all your bills and set your
family up to live comfortably forever.
What else could you wish for?
When you wish upon a star, if you're like most people, financial
freedom is one of the first things on your list.
A crystal ball, perhaps. Or tomorrow's newspaper, just like on
the television show "Early Edition." You would be able to know
what the masses were going to do tomorrow. You could anticipate
their every move with unfailing accuracy.
Think how easy trading would be? Wouldn't it be nice to be able
to predict the future?
In The Wishing Mode
It's fun to wish that we could trade more profitably, but
beware, wishing "could" be a sign of desperation.
When you are in wishing mode, you may passively wait instead of
taking decisive action. Hoping for miracles and wondering if
you'll ever see huge profits.
But if you take proactive steps, you won't have to wonder.
Profitable market timers do not "wish" or "wonder." They act.
What is the number one proactive step? Following a tried and
true timing strategy.
Many novice market timers have trouble following a strategy.
They make the decision to follow the plan, but when the time
comes to execute a buy or sell signal, often at odds with
current market sentiment, they find reasons "not" to make the
trade. Or they delay executing the trade, and sometimes make a
late entry after watching the trade work.
But the consistently profitable market timer maintains
discipline, and that means not only deciding to follow a solid
timing strategy, but also trading it through thick and thin.
With a tested strategy you can trade without fear. You do not
need a crystal ball. A good timing strategy works across a
variety of market conditions. It may not win on any single
trade, but its methods give those who follow it that all
important trading "edge."
Murphy's Law
When trading the markets, do you often feel that Murphy's Law
says it all: "Whatever can go wrong, will go wrong."
Have you found yourself saying, "When I take a bullish position,
the market always reverses and goes down."
Or, "When I am certain the market has topped and pull all my
funds out, you can bet that will be the day a new rally starts."
Surprise! This is "not" Murphy's Law. This is simply a trader
who is trading by the emotions of fear, greed, hope or wishful
thinking. Not following a plan.
A market timer who follows a good timing strategy may not always
have a winning trade, but they know that the odds place them on
the profitable side over time. Murphy's Law does not apply to
those who follow a plan.
Predicting What The Masses Will Do
Can you predict what the masses will do? Sometimes, but not
always. Profitable market timers, however, rely on their
strategy. They do not try to predict.
A timing strategy removes emotion from the trading equation, and
emotions, as we know, are the single most common reason that
timers and traders lose.
All market timers should be students of the markets. They should
study the markets and develop an intuitive feel for how they
move. It is common sense to develop a good knowledge base when
investing your money.
But unless you have magical powers of prediction, a time proven
crystal ball or a star to wish upon, be sure follow a time
tested and unemotional timing strategy for profits.
Crystal balls are great toys and fun for party games, but they
are not tools for investing your money. Wishing upon a star
worked for Jiminy Cricket in the Disney movie Pinocchio, but it
does not work in the financial markets.