Day trading and investing is a challenge at best. Those who try to learn day trading or investing in order to discover something very early in their (often short term) career:
The stock market is cruel, callous and indifferent. It is also a good teacher.
Wall Street lure in new suckers every day - idiot, falling for the siren.
"Come on in, the water is fine"
We are all seduced by the market at least once in our lives. So why do we keep falling for their lies over and over again?
At the moment, Wall Street tries to draw us into the rocky cliffs. And many of us, with the lemmings that we smile when we walk on the edge.
Of course, when I say "we" I "that you" - people like you who do not think critically for themselves.
The recent market rally seems to be the creation of "buy and hold" investors for a further bloodbath. Day traders sit back and smile, think the volatility is just around the corner.
The Dow is back over 10,000, the S & P is far more than 1000 - it is as if the markets attract investors into a trap.
"Hurry up, jump on board before going to miss the rest!" Wall Street is the final selling point.
The question is - is it really back? Or the mother of all bear market rallies?
Do we really believe that the pain is over? Is it all butterflies, roses, and the sun from here?
You can decide for themselves, but for me, I do not think so. I do not believe the hype, I can not under the siren song.
Consider this: Since the March low the S & P is up over 60%. Do you really think it is the side is much higher beyond what is this? Is this thing really running for a further 40%, 50% or more?
Or we're there for a major retracement / correction?
In view of the still limp economy, is my money on a retracement.
Of course introduces this fabulous trading opportunities for those who can take advantage of the turmoil, especially in a declining market.
In addition to considering that housing markets seem to stabilize and begin to bottom out (maybe), we are only the tip of the iceberg to the collapse of real estate.
Commercial Real Estate decreased during the last years. But there is more pain right around the corner - a lot more.
Search for new commercial property values slump in the coming years to 5 years, makes a mature assets in the years 2005, 2006, 2007 and 2008 financed.
Some of these properties were at 80% or more, which means that those loans now funded completely under water.
You remember how the markets reacted to the collapse of the housing market?
Expect more of the same after a similar (or worse) commercial real estate collapse.
So, if you believe the siren song of the market, Be My Guest. I'm sitting here like a vulture waiting to take the crumbs, what else from your investment portfolio.
The best way to protect themselves against the uncertainty in the markets is not to keep long-term investments in securities.
In other words, day trading, you protect your property and risk in the long run.
So act now and learn how to trade - Save Yourself a lot of pain tomorrow.
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