We all understand some folks make money injecting fear into the market, even if this reality is reported with ambivalence (See below.). Coming down the line is the time when the peddlers of fear will have less opportunity to market their product. Eventually, the economic recovery will firmly root and the opportunity to stalk those without the ability to discern between solid analysis and fear mongering will dissipate …
CHICAGO (Reuters) – Sometimes technical indicators seem named just to see how much fear they can provoke. Take the “Hindenburg Omen,” an indicator that depends on a number of variables that was triggered on Thursday in the market portending a sharp correction in coming months.
Okay, so let’s move on…
What is a good book to read for people just getting started in stocks?
Once again, the book I first recommend is Trading In The Zone (Mark Douglas). When this book came into my vision, I was struggling to gain some footage in trading the market. After reading it, my whole perspective changed, as I learned one, very important lesson – success depends on what I do, not what the market does.
Many upon many of you out there have written me asking about how to get started with the development of a trading plan, or finding an automated trading system. An article that appeared in “Market Beat” (one TraderPlanet newsletter) is an answer for you. Check out this article. It is excellent and very helpful. Below is the opening paragraph, and after it is the link to the TraderPlanet archives, in case you don’t receive the newsletter (if not, sign up).
Today I’d like to talk about how to find the right trading method because we are constantly bombarded with new methods or systems almost daily, and I believe traders have little chance of being able to identify the right ones to use, the best performing or the most educational.
http://www.traderplanet.com/newsletter_issues/index/4
An important reminder for all of us is that fear is an emotion, a powerful emotion that can drive us toward irrational behavior. Our job as investors/traders is to move past the emotion, to keep our focus, to remain steady when the wind of fear blows. If we don’t remain rational, we become the lemmings headed blindly for the cliff. This is the reason I keep hammering this idea that some have an agenda that requires generating and perpetuating fear and their ally in this is the media, which understands well that bad news sells.
Trade in the day; invest in your life …
