A Simple Business Complicated by Egos
Posted on September 21, 2018
Investing is a simple business, complicated by egos… That was my conclusion yesterday having contemplated the seemingly endless bearish narrative surrounding equities with the major US indices at all time highs. Let me explain why.
First of all, the market is never wrong. Your opinion does not matter and the market will do what it will whether you are long, short or have no position. When its moving against us, we recognise how efficient it is in punishing mistakes. So conversely, when the equity markets are rallying as they have been, why do so many supposedly experienced investors reject this for their abstract narratives? (hint: its a three letter word beginning with ‘e’ and ending in ‘o’).
When you look at the facts as we did in this weeks’ Trading Club video analysis
, you would be forgiven for thinking that the data are from a bygone bull market, somewhere deep in the annals of history, when the economy was healthy, people were happy, and investors were making money buying stocks hand-over-fist. But thats only in contrast to the noise made by 'perma bears' throughout mainstream and social media who espouse the same prehistoric rhetoric that was last relevant nearly 10 years ago. In reality, when you shut the blinds and cut out the noise, that dream of bygone prosperity is in fact reality - the bull market is now, for those who want
to see it!
There is no room for ego in successful trading. Don’t let your opinion get in the way of the facts, and don’t let your ego blind you from seeing reality. To quote Lex and the original trader he adopted the saying from, "win or lose, everybody gets what they want from the market.” I choose to make money over indulging my ego, by accepting the facts and remaining flexible as they change (which I accept that they inevitably will - but don’t let my ego get in the way by trying to predict when).
So do yourself a favour this weekend. Don’t go on social media. Don’t switch on financial TV. Don’t read the business section of the paper. Check out the latest video in our Trading Club
offering the same authentic and unbiased perspective that I advise my multi-million dollar fund clients with. And if you need further encouragement, check out some of the feedback this week from our members below:
“..as a new subscriber I'm so glad I have access to your insights. From a technical standpoint I have found my way and have a good process, however when it came to finding someone who knew how to look at things from a fundamental perspective AND provide reasoning along with a repeatable process, I just couldn't find anyone credible until now.
"I literally cannot wait to have enough funds and time to get onto the million dollar traders course."
"Thanks James for this very instructive video. This is a big problem i have to cut through the noise, overwhelmed by too much information even though it's from credible sources.."
“..I just wanted to thank you for the update. And also would like to say a special word to James. This week's video is very good. So if you can forward him the message I would appreciate."
"As a long term subscriber i must say that i improved in such a way my trading/trading style that i consider this, one of the investments of my life. I’ve completed the Million Dollar Traders course, and knowing to build up the checklist and working with that has indeed helped me. And believe me, it has helped me a lot!"
"…Introducing the business cycle was really good because it helps to undestand in a bigger view the current market conditions ( risk on/off)... You guys make great great work."
Have a great weekend,
James Helliwell | Chief Investment Strategist
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