The old saying, ‘patience is a virtue’, is true in the trading and investing world of today’s markets. In December, Serge received 10-15 inquiries from people getting ready to retire, who wanted to take more charge of their finances and be more involved in the markets. The problem with this is once people get more involved and passionate, they tend to overtrade or jump on the first thing that comes across their desk. Patience is one of those things that has seemingly gone by the wayside as instant gratification has become the norm. Many investors become chart chasers, meaning they look for, and invest in, the latest breakout trends. But, Serge says that era has ended for now. While commodities may see some chart chasing opportunities, in general, chart chasing is over.
Most people have done well for the last 12 years or so, but not because they were geniuses at picking good stocks. It was because the general market went up. We saw historically low, almost 0%, interest rates. Interest rates now are around 5%, making it a much different ball game. In today’s markets, we need to be more focused on macro economics. That doesn’t mean you have to become an economics professor, it just means you have to do a little more research. Investors are going to want to keep a close eye on the dollar index and interest rates, as there is a direct correlation between the dollar going up and equities going down. So again, patience will be key. Don’t fall into the trap of overtrading, as, historically speaking, it’s only worth it to trade during about 20-30 days in any calendar year. Most people trade much more often than that. If all of that sounds like too much for you, you may want to consider getting an investment advisor.
What You’ll Learn:
- What the Modern Monetary Theory (MMT) is.
- What macroeconomics are.
- What the Average True Range is and why it’s important.
- And much more!
Favorite Quote:
“Patience is one of those things that we, as human beings, aren’t very good at.” -Serge Berger
