There is Only One Side to The Stock Market

I'll start with a quote and a tweet from a couple days ago.

"There is only one side to the stock market; and it is not the bull side or the bear side but the right side." - Jesse Livermore

The noise is thick in this world of social media. From the perma-bears to Robinhood traders, to the talking heads on financial TV.

One of the best things I did about seven years ago was I quit watching financial news. Trading and investing is hard enough on its own without the constant second-guessing that comes from listening to mixed opinions in the media.

Everyone is entitled to an opinion but most have a bias. That bias can come from trying to sell you something or from a particular stance or view that the individual is unable to part from.

What I like about price and trends is that they don't lie. As you can see from the tweet above we've been in an obvious uptrend since 2010. Yes, there are setbacks along the way but stocks have their own bias. As a whole, or measured by an index stocks go up over time. 

Right now it seems like every day stocks are going up and making headlines. Nothing lasts forever and eventually, the rug will get pulled. How much you give back and how you minimize the damage is the key to consistent success over the long term.

In a market like we are experiencing it's very important to differentiate your trades from your long-term positions. Trades are just that. Trades. They are designed to make money on a reward to risk basis. Nothing more. If they don't work they are sold for a small loss. When they work you have to maximize your profits to make up for the small losses taken when you're wrong. 

With longer-term positions, you have to suffer setbacks in the short-term in order to realize outsized gains. Apple stock is a great example. Those who made 300%, 400%, or more had a plan and stuck with their position when things were looking ugly and the talking heads on TV were saying it was no longer a good stock to own. 

Don't let the bombardment of noise keep you from participating in this bull market. Every week there are incredible money-making opportunities. You just have to know where to look and how to manage your risk. 

This is exactly what we've been doing in Profit From Trends Premium. Don't trade alone.

SIGN UP HERE to receive Profit From Trends directly to your inbox once a week.