Gottfried,
The condition of the market determines the strategies we should apply.
In a trending market, you can't buy low, except the dogs. And, if the dogs aren't running in a trending market, then what's going to get them to run.
When stocks are stuck in a trading range, you can buy low and sell high as they relate from being oversold to overbought. That price range may only be a couple of bucks.
If we're in a trading range market, then we should expect lower returns but, returns none the less. In a trending market, the types of returns reported in that book are what the pros are achieving. They do it by buying strength, not laggards. In a trending market, we should be achieving triple digit gains, if we work smart.
A major brokerage firm did a study of the retail investor from the middle 80's to the middle 90's. During that time frame, only 8% of their retail accounts showed a profit. We retail investors don't have the right frame of mind to achieve the larger results. I know that now. I also know what I have to do to change and I'm not saying it's going to be easy but, it is going to happen.
I've only been expecting to outperform the S&P 500 and I've done that. My expectations have been too low. It's human nature to try to live up to expectations. Too often we don't set them high enough.
We get what we expect!
dabum |
