Gurus vs market direction

The market has been soaring lately. The most unbelievable thing is that it has been doing so amidst not so good news and definitely not good volume. Volume is always a sign of conviction, confirmation. In the middle of all this it is a lot of fun when you see so many "Gurus" everyday looking for an explanation, or "finding" a reason why it went up today or a little lower down yesterday. They always seem to find a reason haha, same as when they explain things that already happened on a chart. It is so easy to be a good technical trader when you are explaining things that already happened!!!! I could be a teacher my self and be selling pdfs and making money without ever having traded at all!!

That's why it is so important to be afraid of Gurus. Don't pay attention to "professionals", the word professional means nothing in this industry. Don't pay attention to CNBC, well or watch it as a sitcom for your entertainment purposes. Don't follow tips.

There is so much information out there, so many people trying to predict the market and saying different things that it is really difficult for you not to get mixed up. Study hard, read as much as you can, so you can do your own calls and you won't have anyone to blame but yourself. If you decide to buy a product, be it a book or an alerts service, do your homework, make sure you find reviews. Do not believe in all the reviews blindly, they may have been written by the authors of the products. In this respect Investimonials can help you find reviews, most of them honest.

Do not believe any testimonials on websites promoting their product. I run this blog and it is really easy for me to add a column with a couple sentences of nonexistent people thanking me for being such a nice guy.

Focus on neutral trades, even more if you have a full time job that doesn't allow you to follow every tick of the markets. Stay liquid most of the time, and when trading just go to each battle with a portion of your capital.

Stay away from the game of penny stocks or if you want to enter, then make sure you first learn how that corrupt world works. You would be doing yourself a great favor. As for penny stocks timothysykes.com is a good place for you to start understanding how this niche works. The author basically teaches you his strategy to trade penny stocks by his DVDs, which he intensively promotes. I haven't bought anything from him, but the guy is absolutely transparent and his free articles really helped me to understand the penny stocks game. I would just have been another ass out there getting killed over and over trading penny stocks. My decision was to not enter that game by now, and if I decide to do it in the future I already have the warning and understand that I cannot enter just like that, but with some tools and lots of education on my side, and I thank him for that.

Last but not least, read everyday, but read useful articles. I follow some newsletters everyday and one that I like a lot is The Tycoon Report. It has provided me with honest, thorough and useful information, and it has taught me a lot about options trading. You can go to their website and subscribe to their newsletter for free and you will receive an article every day in the morning. Now that we talk about the Tycoon here is an article by one of their contributors explaining his take on the current market which I found very clever.

I am not an affiliate of any of the websites mentioned above. I just think that in the middle of so much information, it is good to cut the crap. I will keep a section in the blog just for resources, for education, and will contain mainly cheap or free stuff that I have found to be useful.

Have fun!

Go to the bottom of this page in order to see the Legal Stuff