Everybody keeps asking me what is going on?!?!?! The markets tanked this week and everyone is running for the hills! Russia is taking over eastern Europe, this quarter’s earnings will be bad, Obamacare, Chinese economy, bubbles, tapering, Heartbleed, swine flu, and Y2K! What do I have to say about what happened to the stock market this week? I say wake me up when the S&P gets below 1750. Then maybe I’ll take a second look. But until this pattern is broken somehow, I’m going to continue to assume that the market will remain on autopilot:
Which means I bet the S&P should make it to or near 1800 in the next couple of trading days. That is pretty boring. What happens after that might be a little more exciting depending on whether or not the S&P continues to fall. And why do I use the word “exciting” instead of the word “terrifying”? Because I could really care less if the market continues to fall. As I said on March 1, I’m 40% cash right now, so if the stock market crashes at any point, I will be going on the shopping spree of a lifetime! I only hope that I get lucky enough one day to see another shopping spree like the one the market provided back in 2009. The only people that should be terrified when the market drops are people who are sitting on their butts and watching their stocks rise and fall. If you are actively managing your money, and you know what you’re doing, every drop in the market is an opportunity to make more money.
It’s very liberating to be able to make money and not care if the market goes up or down on a day-to-day basis. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market in five years using only basic principles of psychology and common sense. To read about how I did it, check out my book, Beating Wall Street with Common Sense, and stay tuned to www.tradingcommonsense.com!