Yahoo! Finance
10-12-2006, 05:01 PM
Yahoo Finance Investing Strategies
Motley Fool
Investor Apathy Means the Market Stays Bullish
Thursday October 12, 5:08 pm ET
By Mike Norman
I'm looking for signs of a market top, something ... something. Not that I'm nervous, mind you. Actually, I feel quite comfortable being long. I've been strongly bullish since May, and in the first week of June, I sent a Special Update to the subscribers of my Economic Contrarian Update advising them to "Buy the Zarqawi dip."
I know that sounds funny to hear now, but it wasn't so funny four months ago. Back then, many people felt that taking out the top terrorist in Iraq should have triggered an instantaneous, jubilant response in the market. When it didn't happen, the bears were out in force. To a veteran trader like me, that sell-off was a gift, and my mother always taught me never to refuse a gift, so naturally I bought more.
Investors are so impatient. They let their impatience blind them to opportunity and to reward. I often wonder why that is, because it's so self-defeating. Remember the four behavioral traits necessary for success? Patience is the first, followed by alignment, detachment, and discipline. I call it the P.A.D.D. system. Without these four behavioral attributes, you won't make it as an investor or trader. I don't care what kind of methodology you use: growth, value, top down, bottom up, technical, fundamental, astrology, numerology, whatever -- it doesn't matter. It's the behavioral part that always separates the winners from the losers.
As a contrarian, I like to look at the behavior of the crowd and determine their mood and their sentiment. This will alert me to whether or not the market is at a major peak or at a major trough. The fact that the Dow just made a new record high doesn't suggest we're dealing with a major trough (at least as far as the Dow is concerned), but what about a major peak?
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/fool/061012/116068732830.html?.v=2)
Motley Fool
Investor Apathy Means the Market Stays Bullish
Thursday October 12, 5:08 pm ET
By Mike Norman
I'm looking for signs of a market top, something ... something. Not that I'm nervous, mind you. Actually, I feel quite comfortable being long. I've been strongly bullish since May, and in the first week of June, I sent a Special Update to the subscribers of my Economic Contrarian Update advising them to "Buy the Zarqawi dip."
I know that sounds funny to hear now, but it wasn't so funny four months ago. Back then, many people felt that taking out the top terrorist in Iraq should have triggered an instantaneous, jubilant response in the market. When it didn't happen, the bears were out in force. To a veteran trader like me, that sell-off was a gift, and my mother always taught me never to refuse a gift, so naturally I bought more.
Investors are so impatient. They let their impatience blind them to opportunity and to reward. I often wonder why that is, because it's so self-defeating. Remember the four behavioral traits necessary for success? Patience is the first, followed by alignment, detachment, and discipline. I call it the P.A.D.D. system. Without these four behavioral attributes, you won't make it as an investor or trader. I don't care what kind of methodology you use: growth, value, top down, bottom up, technical, fundamental, astrology, numerology, whatever -- it doesn't matter. It's the behavioral part that always separates the winners from the losers.
As a contrarian, I like to look at the behavior of the crowd and determine their mood and their sentiment. This will alert me to whether or not the market is at a major peak or at a major trough. The fact that the Dow just made a new record high doesn't suggest we're dealing with a major trough (at least as far as the Dow is concerned), but what about a major peak?
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/fool/061012/116068732830.html?.v=2)