Saturday, May 19, 2007

Market Psychology

Although many of us are awaiting a correction in the markets, it is important to keep in mind that you shouldn't try to go against the trend. Wall Street is too strong, and it is better to go with the trend then to try and call the bottom or top of the market. I've been reading a lot of interviews with successful traders lately, and almost all say the same thing. Individual investors make the mistake of trying to find the top or the bottom. You are better off waiting until the market shows us a direction, and follow that direction.

We should strive to get the "meat" of the run, and not get greedy trying to capture the whole thing. If you're thinking of taking profits, keep in mind that it is a lot easier selling when the market is going up, as opposed to waiting until stocks start falling to sell.

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