Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Gold Stocks Vs Gold – Not A Good Bet - 15th Dec 19
Silver Price Remains in 'Corrective Downtrend' - 15th Dec 19
Amazon - Snow Falling Effect Christmas Lights Outdoor Projector Review - 15th Dec 19
How to FIX Dirty Disk Windows Hard Drive Volume Error 0X80071AC3 - 15th Dec 19
Raffaele Riva and AUREA Are Breaking New Ground in Financial Services Across Europe  - 15th Dec 19
Canadian Cannabis Stocks CRASH as Canopy Growth Hits a Dead End - 14th Dec 19
Retail Sector Isn’t Dead, and These 6% Dividend Paying Stocks Prove It - 14th Dec 19
Top 5 Ways to Add Value to Your Home - 14th Dec 19
Beware Gold Stocks Downside - 13th Dec 19
Fed Says No Interest Rate Hikes In 2020. What About Gold? - 13th Dec 19
The ABC’s of Fiat Money - 13th Dec 19
Why Jo Swinson and the Lib Dems LOST Seats General Election 2019 - Sheffiled Hallam Result - 13th Dec 19
UK General Election 2019 BBC Exit Poll Forecast Accuracy Analysis - 12th Dec 19
Technical Analysis Update: Tadawul All Share Index (TASI) - Saudi Arabia ETF (KSA) - 12th Dec 19
Silver Miners Pinpoint the Precious Metals’ Outlook - 12th Dec 19
How Google Has Become the Worlds Biggest Travel Company - 12th Dec 19
UK Election Seats Forecasts - Tories 326, Labour 241, SNP 40, Lib Dems 17 - 12th Dec 19
UK General Election 2019 Final Seats Per Party Forecast - 12th Dec 19
What UK CPI, RPI INFLATION Forecasts for General Election Result 2019 - 11th Dec 19
Gold ETF Holdings Surge… But Do They Actually Hold Gold? - 11th Dec 19
Gold, Silver Reversals, Lower Prices and Our Precious Profits - 11th Dec 19
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

The Key to Investing Success

InvestorEducation / Learning to Invest Feb 08, 2013 - 02:47 PM GMT

By: Money_Morning

InvestorEducation

Shah Gilani writes: If there's one single, indispensable key to successful investing, it's to go with the flow.

That's my distillation of well-worn market mantras that you're probably familiar with.


They include:

The trend is your friend;

Don't fight the tape;

Trade the market you are given, not the one you want;

And don't fight the Fed.

Go with the flow.

You can do all the homework and analysis you want - and be right - and yet still lose money. That happens when you own stocks you love, but the market isn't loving any stocks. It can happen when you try to pick bottoms, and you get in before the market heads a lot lower.

And while you won't lose any money by not being in the market, you're not going to make any money in it either.

That brings us to today. We've had a furious up-move in the market since March 2009. We're scratching at new all-time highs, and global markets are dancing to the same tune.

But the world hasn't changed since last May - or the May before, when markets swooned on fears about Europe, America's fiscal fiasco, a slowing China, or any of the other dark clouds that, at any time, can rain on the markets.

So, are we going higher? Are we going to get a wicked correction? Is the sun rising or setting?

We don't know if the market is going higher from here or if it's headed down. But, we do know that the sun rises and the sun sets... every day.

That's why, even if you could distill all of the unknowns that you don't know into a plan of action, the only sensible plan is to not guess, but simply to go with the flow.

Going with the flow means following the trend - and not fighting the tape or the Fed. But it's not just a different way of saying those things.

For me, it's about looking underneath what's being talked about. It's looking at investor psychology by looking at the flow of capital into or out of the market.

I go with the flow of capital. I don't complicate my money-making endeavors in the market by overanalyzing or hoping. The most important thing for me is simply being on the right side of which direction capital is flowing.

Capital has been flowing into the market. It doesn't matter that a lot of that flow is coming from the Fed's stimulus efforts, it's still capital flowing in. Don't complicate things.

If capital starts flowing out of the market, I'm not going to fight that trend - once I recognize that it's the force of the prevailing psychology. I'll go with the flow.

And you should, too. Don't sit on the sidelines if there's a party going on. Join it.

That's what's happening now. That's what has been happening.

Don't worry about what you don't know. Just have an exit plan in place. It's as simple as having stops - and raising them as your positions become more profitable.

So what if you get stopped out - especially with a profit - and the party gets going again. Get back in, even if that means higher prices than where you got out. Simply tighten up your new stops by placing them just below where the latest good support level is.

And, because it's widely available, always have downside protection in place. It's easy enough with ETFs that offer inverse positioning and with instruments like VXX.

I look at the market like the old lotto saying, "You've got to be in it to win it."

Up or down, it doesn't matter to me... as long as I go with the flow.

[Editor's Note: Shah Gilani has been "inside" the market for more than 30 years as a Wall Street broker/dealer, a hedge fund manager, a currency manager, and a bond trader. As Shah explains, you can buy a stock and wait. Or you can bank on a transaction and stand to get paid. That's what Wall Street's dealmakers do. In this brief video Shah reveals six white-hot deal opportunities you need to know about now. This won't be around long. Go here now.]

Source :http://moneymorning.com/2013/02/08/these-four-simple-words-are-the-key-to-your-investment-success/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules