Buy when there’s panic in the headlines. Sell when there’s euphoria.
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Aren’t you glad we didn’t panic back in the February panicky sell-offs? Remember those quotes from Jesse Livermore about how he’s always made his biggest money by sitting. That has been a good strategy of late, as many of our stocks bounce back up to new recent highs. Don’t be afraid to do a little trimming, especially if you were scared and thinking about selling back at the lows five weeks ago when the DJIA hit 15,500.
Remember that investing and trading are always about the next 10,000 days. Here’s an article I wrote a couple years ago that I want to reshare with you Trading With Cody subscribers today.
Forced to play the game Published: June 17, 2013
The cross currents in the markets and the economy and especially in the political world are swarming faster than ever. As always, it’s crucial to step back and get some perspective on what is dominating the headlines. Deciphering what matters from hype is one of the most important keys to staying in front of the cycles and trends.
First, take a look at the three headlines dominating my favorite financial news site (and my publishing partner) Marketwatch.
Strategists list seven reasons to stay bullish on stocks nowHere’s how to tell if a stock market gets overly bullishU.S. stocks surge Monday as Wall Street places its Fed bets
I want to remain bullish and continue to ride this ongoing stock market bubble that we positioned ourselves for years ago. But headlines like this keep from me wanting to get too much exposure. Buy when there’s panic in the headlines. Sell when there’s euphoria. What do you see in the headlines above? Trim down some and wait for the next big pitch.
You’re trying to maximize your gains and minimize your risks over the next 10,000-20,000 days of your life. And in the big picture, it never pays to lock your money into stocks after the markets have just doubled and tripled in the last handful of years.
Cody back in real-time. And what do the financial news headlines read today?
Stock Market Rallies For Fifth Week In A Row
Investor’s Business Daily–Mar 18, 2016U.S. stocks capped the week with solid gains Friday, extending the major market indexes’ weekly advance for a fifth consecutive week. The Dow Jones industrial …Stocks roll: Dow up 6 days now as S&P 500 turns positive for 2016
USA TODAY–Mar 18, 2016Dow books longest winning streak in 5 months
MarketWatch–Mar 18, 2016The S&P 500 Just Broke Into Positive Territory for 2016
Fortune–Mar 18, 2016Markets Close Higher for Fifth Week in a Row
In-Depth–Voice of America–Mar 18, 2016Market Finishes 5th Week of Gains, Turning S&P 500 Positive
In-Depth–ABC News–Mar 18, 2016
Just something to think about and part of why I’ve been trimming some longs and adding the SPY puts of late. See you in the Chat Room!
