Not Sure Where the Market is Going?

I don’t know where the market is going. Will it shrug off all this Covid19 pandemic or will it fall apart? I really don’t know.

That’s the thing with the Markets, you can try to build all these decision support systems to predict if the market is going to go up or down, but that always remains such a futile effort.

The only thing you can really do is protect yourself in down times and invest smartly for the long term.

Uglychart used to always joke about an old newspaper headline that stated “Markets Fluctuated Today.” Well shit, of course they do.

Some Traders make money in down markets, others in in up markets. The best Traders can do it in both. I gave up Trading for Investing.

What would I do now if I had some $ to invest? I’d probably buy a low cost mutual fund that’s diversified. If I had a lot of $ to invest, I’d buy more mutual funds and just dollar cost average in the same amount every month on a down day. Market timing is foolish but to help your psyche, buy on down days. Once everything goes up, you feel better.

Of course the worst thing to happen would be that the market takes a dive into the abyss. You’d hate yourself for buying those funds when the market was higher, but you don’t know. The Fed is pumping in Trillions of dollars, trying to keep things afloat. You’d be foolish not to think this was all made of air. Can it collapse now? Later? Never? You don’t know.

What I do know is that one day Covid19 will be over and that one day the Markets will be beating records again. Bitcoin might still be a thing and Gold might be $10,000 an oz. I just don’t know in what order these things will happen, so I’ll keep my risk low.

Buy a little here and there, don’t put all my eggs in a basket, and look to the future.

Learn Stock Trading, Investing, and Risk Management

There are a handful of financial and trading books that have made a HUGE impact on my investments. If you want to trade and learn about money and risk management then I suggest you get the Van Tharp book. If you want just focus on long term investing, get the Random Walk Down Wall Street book.

Hell, get them both. I owe my wealth to what I learned in those books.