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Beliefs of Successful Market Timers
Successful market timers, meaning profitable market timers, have several "common" beliefs that help them achieve consistent profits. On the flip side of this, those who are unsuccessful also have a set of common beliefs. It is a good idea to know which beliefs will help you to succeed, and which ones you may have, that need to be changed.


Beliefs of Successful Market Timers

  1. I will not jump into a trade before or after a signal just so that I can be participating.
  2. I recognize that discipline is not a concept, it is an absolute necessity. The markets have a way of removing money from undisciplined market timers.
  3. I realize that what happens today, this week, or even this month, is not what is important. What "is" important is my success over time.
  4. I realize that losses are part of trading. No strategy is without losses.
  5. I accept that sometimes my investments will under perform the market, knowing that over time, they will outperform the market.
  6. I know that following a timing strategy through good times and bad are what will make me successful.
  7. I can follow a strategy for the long haul and stick with it, even when at times it is discouraging.
  8. I accept that following a timing strategy will require me to make frequent trades that may seem like mistakes. A string of successive small losses will not make me quit.
  9. I can ignore the mass media, which raise emotions and thus increase the risk of not executing a trade. It is often the trade that is hardest to take, that winds up being the most profitable.
  10. The markets provide a constant stream of opportunities. If I miss an opportunity, another one will follow.

Beliefs of Unsuccessful Market Timers

  1. I must be trading all the time to be successful. I am uncomfortable when in cash.
  2. If my strategy is not doing what I think it should, I will make a change immediately.
  3. If I lose on this trade, I feel like a loser.
  4. If the market is rallying, I must get in even though my strategy gave no signal for it.
  5. I am unlucky.
  6. I get very upset when I miss a rally, or if I am in a bullish position when the market is declining.
  7. I dread adverse news events and constantly worry that something will happen to make the markets go against me.
  8. I can't afford to lose anything on this buy or sell signal.
  9. When this losing trade gets back to even, I'll dump it.

Beliefs of Successful Market Timers, FibTimer Market Timing Editorial - Sunday, January 8, 2005


More important research topics to help guide your investment decisions

  1. Bad advice is just as expensive as good advice - you don't know the difference until it's too late
  2. Casinos make money by statistics.

The odds are slightly in their favor which over time and consistent frequent play, makes them rich. The name of the stock market game is to stack the odds in your favor.


How to put the odds in your favor?

  1. A good market timing indicator. You are never on the wrong side of the curve for long
  2. Selecting the best performing stocks
  3. Profit targets, high probability setups, cost averaging, money management
  4. A strategy that works for all stocks in all markets
  5. A mechanical trading system that executes your strategy without emotion

Advantages of a mechanical trading system


The Pros And Cons Of Automated Trading Systems, Investopedia - August 24, 2011