Wednesday, April 14, 2010

Don't Chase The Market

If you're still sitting out, the pain you feel is becoming unbearable.  You're ready to buy something just to feel better.  Well, don't do it.  Chasing many of the extended leaders is a high risk proposition.  Based on model studies most of the stocks will pullback at some point and most will be buyable right around this range.

So then why wait you ask?  I found overtime that it is easier to deal with missed profits then with lost profits.  If you're sitting in cash and waiting for the pullback and are ready to pull the trigger, it will be easier to do so.  If you're invested and have to sit through a pullback, even though you may understand it is normal, your EMOTIONS DO NOT.  They will force you to run for the exits just as you should be ready to add more.

I continue to swing trade this market and protect my profits and risk vigilantly.  I do not want to get or be fully invested just when the sellers and buyers decide enough is enough.  Stay patient and don't let those emotions get the best of you.

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