There is always a market that has done better than your own overall stock investing returns. It is one of the pitfalls of investing to look back and tell yourself “if I just had only invested in that market”.
As a smart index investor with sufficient funds to invest, you do not bet on just one market. You pick a number of different markets to spread your risks. You could for example invest in different international markets (if that is for you, read here more about diversifying internationally).
Here is a confession of a trend follower: I am always long at the top. I am always late with getting out of the market. When the market hits its top, I am there. But when it is on the way down, initially I am still there.
Does this sound bad to you?
I can imagine that you see it as a sure loss when you are long the market when the market is at its top. Logical, after a top the market is declining. And when you are long a declining market, you are losing money.
Perspective on Winning and Losing
Correct, but it is all a matter of your perspective, or the time frame that you are considering.
It is common wisdom among successful traders that you should know when to exit a trade before you open a trade. This is actually the easy part. The difficult question is when you enter the market again after you exited a trade.
Good and Bad Trades
Good trades are trades that are following a profitable trading system. Bad trades are trades that are done on the fly, based on emotions. Good or bad trades have nothing to do with how profitable that single trade was. Good or bad trades are all about trading long-term in a systematic, profitable way.
At Stock Trend Investing, we believe that also you, even when you are not a finance or investment expert, can make money, grow your savings and protect your wealth in the financial markets.
We believe you can do this through perseverance, knowing your tolerance for risk, and one hour of your time per month.
We believe it makes the world a better place when you, in this way, can achieve more financial freedom for yourself and your family, will endure less financial stress and are free to spend your time on what you really enjoy doing.
About half of our Stock Trend Investing members invest just in the U.S. markets. The other half invest internationally. You need to know a few things extra when you want to invest your savings in international markets compared to when you invest domestically only. At Stock Trend Investing, we want to help in you in getting the required understanding and insight.