Friday, April 9, 2021

How long will inflation be under wraps?

Is it possible that inflation can stay under wraps forever?

Probably not. But the Fed has ideas for controlling it for the time being.

Right now, inflation is one of the biggest questions in the market or in the economy as a whole. How long will it stay at bay with the government pouring money out?

That's the big question on a lot of investors' minds.
Trying to understand the markets a little better?

Need a primer or a boot camp that can get you started?

Want some help along the way to know which stocks to start trading?

This video can help you get all three
Who's the Infrastructure For?
Our friends at Financial Wars ask: "Who is the Infrastructure bill actually for?"

President Biden wants to spend $2.2 trillion more on infrastructure projects, but with the economy on the rebound, who actually benefits?

Financial Wars is our sister site, and if you check out the article, we'll get you added to their mailing list!

Read about the new bill here
Clicking will automatically register you for periodic updates from Financial Wars (privacy policy)
Simple is Better
ave you ever seen a trader who is trying too hard?

Whose charts have a thousand indicators?

That might be okay for some traders, but for most, simple is better.

Rob explains why in this old Youtube video.

Watch it here
Monster Wins are out there.

They're just super hard to get.

Not because they're a secret or that they can only be found with complicated, proprietary analysis.

They're hard to get because of one big obstacle:

Us.

Everything we know. Everything we're good at. Everything that's served us well...ruins it.

What do we like to do?

Take risk off the table.

What's the absolute safest place to have our money?

Out of the market.

If we get in a trade and it starts to go profitable, what's the safest (smartest?) thing we should do?

Take it out.

It keeps our money from danger and, well, no one goes broke taking a profit, right?

Actually, not right.

That's the problem.

It's very easy to go broke taking small profits--when the stoploss wipes us out.

Ask any big hedge fund that's blown up (Long Term Capital Management being a very famous example). Almost always, they took their profits quickly and let their losing trades run.

If the profits are small, they can't pay for the losers.

It feels great to take a profitable trade out of the market, no doubt about it. It can also destroy our whole account.

The same goes for weekends.

Who likes to hold a winning position over a weekend?

Nobody.

For that matter, who likes to hold a losing position over a weekend?

Nobody again.

No one likes holding a position over a break. It feels like nothing good will come of it.

And sometimes, bad things do happen when the market opens back up.
But, by far, the best thing to do to get big winning trades is to hold over a weekend.

All the research I've ever seen shows exiting on Friday dramatically reduces profit and increases drawdown.

We want to get out on Fridays.

And it's one of the worst things we can do for our trading.

The Monster Wins are out there.

We just have to do the opposite to get them.

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. You may lose more than you invest. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. The information on this website is intended as educational in nature and we do not recommend that you buy or sell any specific financial instrument.
 
 
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