Here's a good example of the difference between trend following and listning to so called experts make predictions on what's going to happen and than base your decesions on those predictions.
I'm a huge orioles fan,have been my entire life. Hasn't been easy the last many years but i've stuck by them and every year have high hopes.But lets face it the trend is and has been down for many years.This year they went out and brought in some new players that were going to score runs and the bullpen and starting pitching was going to be better and so on and so forth.A lot of so called experts were predicting that they would be much improved but when your in the same division as the yankees and red sox its hard to improve that much. Anyway,as usual the experts are wrong,the orioles are the same as they've been,their trend is still down.Until the trend changes you can only expect things to remain as they've been.
The same goes with investing,all the experts can tell you what they "think" is going to happen,where the market,economy etc will be in a year but they really are only guessing.What you need to do as an individual investor is block out all the noise of these talking heads and just follow the trend .when the trend is positive for stocks you need to be in stocks.Just because some blowhard on cnbc says that the economy sucks is not a reason to bail out of stocks if the trend is up. When the trend changes you of course need to change but don't listen to what other people predict just be smart and follow the trend
I'm a huge orioles fan,have been my entire life. Hasn't been easy the last many years but i've stuck by them and every year have high hopes.But lets face it the trend is and has been down for many years.This year they went out and brought in some new players that were going to score runs and the bullpen and starting pitching was going to be better and so on and so forth.A lot of so called experts were predicting that they would be much improved but when your in the same division as the yankees and red sox its hard to improve that much. Anyway,as usual the experts are wrong,the orioles are the same as they've been,their trend is still down.Until the trend changes you can only expect things to remain as they've been.
The same goes with investing,all the experts can tell you what they "think" is going to happen,where the market,economy etc will be in a year but they really are only guessing.What you need to do as an individual investor is block out all the noise of these talking heads and just follow the trend .when the trend is positive for stocks you need to be in stocks.Just because some blowhard on cnbc says that the economy sucks is not a reason to bail out of stocks if the trend is up. When the trend changes you of course need to change but don't listen to what other people predict just be smart and follow the trend
No comments:
Post a Comment