From my perspective, I don't have to beat the market. I have to beat me.
Although I consider myself a technical trader, I never look at the fundamentals, I don't use technical analysis the way most people do.
My main concern is if price is in an uptrend or downtrend. Then I look at supply vs. demand. If I see where demand has control, I'm in. If supply has control, I'm out. It's a very simple process that I have been able to duplicate over and over again.
With regard to demand, I don't know why pet rocks were popular, but they were. A lot of money was made by retailers who recognized the trend early and took advantage of it.
I remember how hot beanie babies were. A lot of people identified the trend early and took advantage of it, making a lot of money along the way.
Since my background is in sales, I understand the power of supply vs. demand. I see the same thing in the stock market and that's what I try to take advantage of.
With regard to skill, I suppose it would depend on how we define skill.
I can't tell you what stock is going to go up or down. So, I suppose you could say I lack the skill to consistently profit from the market.
What I can do though is identify stocks that are under accumulation by institutional traders and then buy those stocks. Skill? I don't know.
What I do consider a skill is the ability to eliminate most emotion from the process. That takes skill, at least it did for me.
Everything else I learned from someone else who was very good at making money in the market. |
