The market is overpriced, but do not force your beliefs against the market.

I thought I’d share a few things which for some reason I want to get off my chest. Most of you will definitely ignore this, but try to understand it… be objective.

Remember, whatever YOU (and I) think, the market does not care, never has and never will. So do not force your beliefs against the market. If you bought at or near the bottom, when everybody was crying doomsday, you would have been very happy with the result. People all through the rebound have complained and look where the market is now. If you believe it shouldn’t have risen…well, it doesn’t care. I believe it is overpriced, yet I am not selling, but I am cautious. Who am I to fight the market…No wealth can beat the market, never (at least not in the long run).

Famous Analysis by Dr. Van Tharp concluded the following characteristics of loosing traders:

- Highly stressed
- Negative outlook on life
- Expects the worst
- A lot of personality conflict
- Blames others when things go wrong
- Crowd follower
- Disorganized
- Impatient

If you live long enough, you realize history does repeat itself, and people never change. I have heard the same remarks from people through EVERY SINGLE bear market (not through the internet of course). Good traders have an independent and FLEXIBLE mind.

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

I decided to write this in reply to one single comment on this website: “The economy is dead”.
I lost a lot of money on the exact comment in 1987, by a very successful trader; I was a novice trader with an easily influenced mind, and he was my idol…for a while.

Many successful/catastrophic events are such because of the way you perceive them. Change those perceptions and you will change the event itself.

- classed

Related Posts:

• The cause of the depression in the 30’s vs. 2008-2009
• Sprott Says S&P 500 to Tumble Below its March Low
• The “Great Recession”, with Capital Letters.
• Trying to bail out housing is a nightmare.
• Stimulating infrastructure does a lot to the economy

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