If you have little experience in financial markets, you probably have read or heard before that predicting tops or bottoms of a stock market is a fool’s fantasy, yet many self-proclaimed experts try to do that again and again. May be good for them but not for average investor to whom they target to give their expertise, thanks to different technology mediums. Let’s consider the present scenario every day or another a new expert opinion comes with a bottomed out target and beat about the bush claiming to make fortunes with their expert opinions!Many average investors just try hard to figure out the final conclusions as they follow those experts and just watch, wait and do everything to initiate action on those super hot tips and advises, the worst strategy to deal in financial markets. Firstly it’s not even near the term strategy, its just desperate moves to satisfy the innermost urges to do something to cover previous losses. Secondly those urges make them suffer more, this approach usually backfired, when stock markets are in chaos not only average individual get shocked, those proclaimed expert even panicked the most or say gone partial insane and want to manipulate with their accessible mediums.
Remember, this is the most important concept in investing or trading that if you try to predict the markets or prices you probably guaranteed to lose sooner or later. Predicting is simply another word for hoping or guessing and that certainly not make you money in any financial venture in real life.
If those expert predictions did as they said, everybody knew the price in advance and there would be no market as nobody lose therefore nobody gains - a market typically moves on uncertainty. So don’t fall for any sure or certain move with baseless claims and tips.
Many unsuccessful traders make a common mistake by taking unplanned quick positions in the live market hours just because of predictions and this become the prominent reason of the trading losses. Even the real experienced expert or trader feared to take unplanned quick new positions in live trading hours.
Financial markets movement depend upon whole lot of Global, Economical, Industrial and even sentimental factors, all the above and more factors must be considered before taking live market positions and its second to impossible for any individual to do that. You need a personal team of 1,000 Stock Analysts working for you to be little confident to act reasonably but not surely because profits still remain uncertain.
To succeed in investing or trading you do not need to guess or predict, rather success comes with focus and persistence. You must do your homework well before live hours and you must quickly learn from your past mistakes, by not let it happen again. Let’s quickly review the current overall situation before going forward with the topic…
Presently, It's been a bad time from few months and it’s going even worse, there are no signs of turning around any time soon. With bulky Layoffs, Foreclosures, credit disaster as well as increasing prices of everything from gas to trash. Families drowned under the huge burden of debts. You all heard these depressing facts each day, now for too long. Some People lost more than fifty percent of their IRA and 401K savings and even if you have an excellent credit score, something like more than 720, also having a difficult time to access credit. Everybody got hurt, and no one knows, what to do?
While considering efforts to sustain US economy’ there’s nothing left to cut in the Fed’s key lending rates, also over 68,000 more job cuts were announced on Monday Jan.’ 26 CY 2009 alone, More than 200,000 job cuts have been announced so far during trailing year.In the recent lending or credit freeze, what if you need is some cash in hand right now, and is their any proven, solid, and sustainable system for putting more cash in your hands in the future?
I think it is much better to avoid getting more anxious day-by-day while trying to out beat the markets. With the initial phase of present economic disaster, you might notice that the big corporations really play nasty games with the mountains of cash they have or even they don’t have! No doubt they have the full backup from the authorities. As we keep witnessing till now how the government literally spending the billions or even trillions to save those institutions and their top-level executives, while the average people just got axed with the plea of cost cutting measures.
You can definitely realize the strong bond among both, Government authorities and the top executives. As much I can presume, little percentage of Top brass executives have the most powerful ability to make or break the Economy. While Government just sit as lame duck, even they already done everything to unsuccessfully cover up the loose issues and watching their backs, again thanks to the concept of poorly maintained capitalist economy. Basically Government even can’t do much if they want as the real power to do something is now quite out of their hands due to the past mistakes from number of years.
If you are an Average investor and thinking or missing the golden bullish time few months back, Let me ask, If you have made good money then? If you do! Congrats! You really deserve it as you overcome your greed and book profits. Now consider this, First you really stand in the list of very few number of average people in gains, of course if you still have healthy surplus, The second fact is little controversial but true you are just go lucky tiny market player in the world of big bull-ies, who actually can left your eyes widely struck with the figures they were making at those time, I’m not providing you any data here but you can search this by yourself. Here I just want to point out and emphasize to reassess the situation of an Average individual in the world of economy and finance.
Never I try to scare readers ; I just repeating what I used to said earlier also, to empower yourself to see beyond what have been shown to you may be from Government or CFOs or even rating agencies as their ratings nullified with the collapse of higher rated securities of the top rated investment banks or financial institutions. There must be another plan if your earlier plan failed to result, don’t just stick to typical mindset due to the emotional association of money, be focused to find the best ways for you, more important only risk whatever you can easily afford and do the focused research yourself by exploring the abundance or information resources online. Make you investment decisions with the solid reasons not just on listening to who’s who.
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