For those of you who are reading this post and are new to the stock market, please pay close attention. You must forget everything you learned from your parents, your economics teacher, your financial advisor, and your stock broker!
Reasonably, you might be wondering why I would make such a bold an apathetic statement. I understand your angst, and most likely your desire to click away from the page and never to return. I ask that you realize that the purpose of this blog, and the sole reason why I spend time writing about successful trading tools and strategies, is to help you grow your portfolio reliably.
You Must Learn To Manage Your Own Investments
No mutual fund, nor stock broker, nor blogger, has as much interest in protecting your savings and successfully investing your money as yourself. The days of handing your money over to "experts" (can you say Ralph Madoff?) in order for them to diversify and grow your portfolio are over.
Not only is greed and corruption running unchecked and rampant in our financial system, but the markets have changed. Today, vast amounts of information are available at your fingertips 24 hours per day. Reports that used to take months to create can now be generated in real time. The complexity of executing trades is no longer a mystery; only brokers have enabled individual investors to trade equities and commodities using simple online interfaces, and have cut the costs so low that anyone can afford to execute them.
Traditional Investing Strategies Are Dead
This article is entitled Fundamental Investing Versus Technical Trading, and it is this topic that is the crux of the individual investors ability easily and consistently out perform the markets. You see, they tedium of listening to earnings reports, checking revenue numbers and employee efficacy numbers is not only no longer necessary, but in fact will hamper your ability to make profitable investments.
Want Proof?
Perhaps you’ve heard of CNBC’s investment guru Jim Cramer? Jim is a widely syndicated and accepted stock market authority. He claims that there is always a bull market somewhere and that he can help you find them. Unfortunately for Jim, he is in his later years, and he is still investing the old fashioned way; by analyzing a stock fundamentals and "investing for the long term."
His methods completely ignore the obvious changes in volatility in today’s markets. Today’s markets are high velocity, making dramatic swings between highs and lows faster and faster with each passing year.
Fortunately for you, there is a better way, a more predictable, agile method for developing a successful trading strategy, and that is technical trading.
Take a look at this 7 minute video, and I’m certain you’ll agree the technical trading is far better suited for today’s markets.
Popularity: 1% [?]
Pingback: social studies » Fundamental Investing Versus Technical Trading