Tuesday, January 23, 2007

The market is always right

When you buy and the market drops, the market is right and you are wrong.When you sell and the market goes up, you are wrong and the market is right again.

So whichever way you look at it, the market is always right. That’s why you have to follow the market. If the market is trending up, don’t make the mistake of telling it that it is too high. When the game has turned into one of emotion and not of logic, it will continue to be too high and going higher with the trend.

Likewise, when the market is trending down in spite of good result and good news, don’t argue, sell your shares and get out.