After QE3 was announced, many investment ”experts” advise publicly on television programmes and newspapers that we should buy stocks, sell US dollar, and buy into precious metals like gold and silver.
The financial market is generally a zero sum game. You win $1000 because somebody had lost $1000 OR miss the opportunity to earn that $1000. Every investors and traders want to make money in their trading. So to make money you have to be smarter and think one step ahead of most investors.
When a good news like QE3 is announced, stock price and other financial assets may be too expensive to buy (good news have been priced in), simply means you are already few steps behind most investors.
We have buy in the midst of a crisis where there is maximum pessimism, that’s when share price or currency are at its cheapest. In the midst of a crisis, you have to think analytically if this crisis will be solved 6 months down the road.
At Tactical Trading Academy (parent of golearnforextrading.com and findundervaluedstocks.com), we will teach our students to identify the level of maximum pessimism. That is where good opportunities in stock market and currencies can be found.
BL, CEO of Tactical Trading Academy – For Your Profits, Your Success Is Our Success!
Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young. The greatest thing in life is to keep your mind young – Henry Ford