It’s no secret that the past seven years have been a time of great economic and financial uncertainty, as well as one of the hardest times to be a long-term investor. Many long-term investors were walloped by the 2008 stock market crash and sold their stocks at the lows, only to see the market nearly triple.
Even now, many investors are scared to take a long-term investing approach because the market has risen so much and has become very frothy, creating a very real risk of another bear market. In addition, bond and fixed income investors have been left with few good opportunities in this very low interest rate environment.
When the Odds are Stacked Against You
In times like this, being a long-term investor is a fool’s game. The odds are completely stacked against you. Many of the new companies going public are very speculative and have little to no earnings, and even established companies are engaging in risky forms of financial engineering.
The problem with traditional investing in these times is that it relies far too much on the stock market going up, up, up. While this strategy works well in a bull market, we all know that nothing lasts forever. “Buy, hold, and pray” is not a good strategy and will end in tears.
Thankfully, there is a solution to the dilemma described here. While long-term investing is all but dead, nimble trading is the only hope that we have to preserve and grow our capital, whether the stock market is booming, stagnating, or crashing. Ideally, the best type of trading is intraday trading with no positions held overnight, because there’s too much risk of adverse news and market gaps the next day.
Most Trader’s Fail
Of course, most short-term retail traders fail, but that doesn’t mean that active trading itself is to blame. The reason why most traders fail is because they’re not properly trained and tend to follow a strategy that has far more in common with gambling in Vegas than a proper business plan. One way of avoiding this common trap is to follow a sound trading plan with real world, proven results.
Join us in our Trading Room
Fausto Pugliese, founder and CEO of Cyber Trading University has developed a revolutionary intraday trading system that is different from the rest. As one of the earliest Nasdaq daytraders and a 12-time champion of the MoneyShow Traders’ Challenge, Fausto is known for his live trading events where he puts his money where his mouth is and shows you how well his trading system works before your eyes. Fausto and his successful students make $200 to $2,000 or more nearly every day and are able to sleep well at night because they have no positions after the market closes.
If you want to get through these hard times with your capital and sanity intact, please email us at Fausto@ctutrading.com or call Cyber Trading University at 1-877-702-9237 to learn more.