As the year comes to an end, Serge finds himself asking why investors haven’t capitulated yet. Most people’s portfolios are down, many 20-25%. Usually we’ll see investors lose 30%, and be down an average of 6 months, before they start to panic. Retail investors tend to be more emotional, which unfortunately, causes them to sell at the bottom. To avoid this, we must have perspective. Investors need to have a broad idea of what’s going on in the economy.
On the other hand, many will end up buying at the high. People get so turned off when they sell at the low that they either never get back in the market, or they wait too long. The key is in de-risking before you go too low, and then buying as soon as you notice that initial snapback. To be successful across all types of markets, we must learn how to remain cool when our portfolios are down. One way to gain knowledge that can help you stay a step ahead, is to sign up for market alerts at TheSteadyTrader.com.
What You’ll Learn:
- What it means to capitulate.
- How to avoid selling at the lows.
- How to gain perspective on the market.
- Why not many people have thrown in the towel yet.
Favorite Quote:
“When we don’t have perspective, that is when we tend to make irrational decisions.” -Serge Berger
