Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 17 2017
By: Ira Epstein

Next-Generation Crazy: The Fed Plans For The Coming Recession
By: John Rubino

COT Gold, Silver and US Dollar Index Report - November 17, 2017
By: GoldSeek.com

Gold Minersí Q3í17 Fundamentals
By: Adam Hamilton, CPA

Bonfire of the Absurdities
By: John Mauldin

The Social Security Inflation Lag Calendar - Partial Indexing Part 1
By: Daniel R. Amerman, CFA

Rob From The Middle Class Economics
By: Gary Christenson

GoldSeek Radio Nugget: John Williams and Chris Waltzek
By: radio.GoldSeek.com

The Metals Market Is A Mess And Will Likely Continue To Frustrate You
By: Avi Gilburt

 
Search

GoldSeek Web

 
How to win in any market: 9 rules for contrarian investing


 -- Published: Thursday, 3 December 2015 | Print  | Disqus 

By Sol Palha

A little knowledge that acts is worth infinitely more than much knowledge that is idle.
Kahlil Gibran

When it comes to investing, the first rule thing you need to learn is effective management of your emotions.  It is impossible to eliminate the impulse to act when euphoria or panic are in the air. While you cannot eliminate the emotion that pushes to you react, you can control your reaction. You can choose to run with the herd of fight panic and stand aside while the herd stampedes.   The most important rule is to never let your emotions do the talking.   This means not succumbing to panic or euphoria. If you fail here, then nothing can help you. All the rules in the world will fail to alter your outcome.

  1. Management of your emotions: Panic and euphoria are useless when it comes to trading. Control them or be controlled by them.
  2. Patience and discipline: these are two of the most important traits that you need to master, after the above rule.  You cannot win in the markets if you are in a rush and lack discipline.  You need to wait for the crowd to panic, before deploying large chunks of our money into stocks. If you decide to short the markets, do not oppose the masses just because they have jumped on the bandwagon. One must wait until the bandwagon is overloaded and threatens to buckle under its weight before you head for the exits and plan on taking a position that opposes that of the masses.
  3. All forms of popular media should be avoided. In other words, if you are going to these places for investment advice you are probably not going to fare well in the long run. Use popular media to get a gauge on what the masses are doing. 
  4. Come up with a strategy before you start playing with real money. Donít attempt to score a home run; your only reward will be loss and misery. The plan should include profit targets on each and every trade, and, an exit plan, in case the trade does not work out.
  5. Technical analysis is very important in our opinion. All traders should have a firm understanding of the basic concepts of this field. Try to understand how to 2-3 technical indicators work. Doing so will greatly improve your odds of succeeding
  6. Study and understand the markets you are going to trade in. We have put up an extensive list of resources, all of which are free here. Free Trading Resources
  7. The law of balancing comes into play here. When you win a significant amount of money, help one person in your lifetime and your rewards will be 100 fold.
  8. Options are a no-no. Under no circumstances, you should trade options until you have a firm grasp of the buying and selling stocks. Once you have locked in some profit, you can use some of this money to trade options if you still have the desire to do so.
  9. Learn to relax. A stressed mind is no good to you. A diseased body is a body not at ease, so if you are not at ease, you will perform miserably in the markets.

Final words

A true contrarian never opens a position unless blood is freely flowing on the streets or the investment in question is despised or being ignored by the masses.  Buy when the crowd is paralyzed with terror and panic and sell when the masses are jubilantly buying. When you are feeling ecstatic, flee for the exits.

Donít be too confident as this is usually arrogance disguising itself as confidence.  The stock market takes no prisoners Stops are an important part of trading; they help you minimize your losses. Never open a position without determining upfront how much you are prepared to lose.

Investing is all about emotions and overcoming them. Do not align yourself with the crowd for they are notorious for being on the wrong side of the equation.


''How do you know so much about everything?'' was asked of a very wise and intelligent man; and the answer was ''By never being afraid or ashamed to ask questions as to anything of which I was ignorant.
John Abbott


| Digg This Article
 -- Published: Thursday, 3 December 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.