Saturday, August 27, 2011

The Next Step

When to enter the market? The Next Step for investors could be based on an easy to understand trend following tool. The 55 period simple moving average on weekly charts is as good as anything else. Investors can add value to this average by tracking consolidation patterns which can give early warning. Chart below.



Americans Choose Gold as the Best Long-Term Investment
PRINCETON, NJ -- Thirty-four percent of Americans say gold is the best long-term investment, more than say so about four other types of investments. Real estate (19%) and stocks (17%) are distant second choices. Bank deposits come in at 14% and Govt bonds at 10%.

(source: gallup.com)

Trading under Stress

The more stressed you are, the more money you’ll lose. A fact. So if you want to avoid big losses, just stop trading when you’re stressed.

Talent is overrated

What makes people great achievers? In sports, chess, golf, business, investing etc. The main idea is that great success is achieved with hard work – deliberate practice.
The value of experience is overrated just like talent is overrated.
It turns out that everything is teachable and it is only a matter of practice… lot’s of practice… 10,000 hours of practice.
summarised from here

My Notes: I agree that practice makes perfect. A singer with lots of practice will be better than a singer with a golden voice but no practice. Same in trading.

3 comments:

Sasi Uppuluri said...

I totally agree with you, Moving averages are the bast tools for Investors. But many do not use them because of their simplicity and some of us will always want to catch the exact top and exact bottom which we might not get from MA's

Balu said...

Good Morning Sir

I see a head and shoulder bottom is under formation in the above long term weekly chart. Please post your observation.

Thanks
Balu

Balu said...

Sry Sir

That can't be head and shoulder bottom pattern.. mistaken

Regards
Balu