Folks there are times to make money in the market and there are times when nothing happens. Sometimes one has to wait months for a proper setup. That’s what we’ve been doing in the metals. I’ve tried everything I can think of to impress this on people, but unfortunately many will just never learn this lesson. They have an emotional need to do something every day. This has nothing to do with investing. It’s purely a gambling addiction. These kind of traders make a little money then lose a little money over and over throughout their entire career. So in the long run they never make any sustainable gains. It’s not my goal to satisfy your gambling addiction. My goal is to teach you how to make long term gains. Sustainable gains that gradually increase over the years. You are never going to do that by constantly worrying over missed opportunities, or by frantic short term trading. One has to focus their efforts on waiting for potential low risk high reward setups. That means waiting for daily, and even better, intermediate cycle lows before you pull the trigger.
That’s not going to always be easy though as we’ve seen. ICL’s can take time to develop and during the period another sector may still be rising (as we’ve seen with the stock market). The temptation is to assume that the ICL will never form and the rising sector will never come down. So many traders get suckered into buying at the top because they didn’t have the patience to wait for the ICL in the proper sector. But this isn’t how you make long term gains. Stop thinking emotionally, logically we all know that rallies eventually end. And by now I would think that most of you understand that ICL’s always eventually form and that the best rallies occur coming out of ICL’s. So if one can turn off their emotions it makes sense that it’s worth waiting for the ICL even if it takes longer than you would like, rather than following the herd and chasing a sector that has been rising for 18 weeks. 18 weeks is too late to go chasing any sector. We want to be looking for something that is potentially on week 1 or 2 of an intermediate rally.
At every ICL we lose people to this emotional need to stick with the herd and keep pressing the rising sector. They end up getting caught at the top and missing the rally in the sector that’s ready to take off. No matter how many times we go through this it’s always the same story. Maybe there are some magic words to break people out of this behavior but I’ve not been able to find them and at every ICL there are a few people more worried about trying to catch the last few points of the current momentum trade than trying to get in at the start of the next big move.
In this business there is always another opportunity just around the corner. It just doesn’t make sense to worry about missing one. I guarantee you are going to miss lots of them during your life. When you do, forget about it, and start looking for the next opportunity so you don’t miss another one.
Just like clockwork the group of perpetual losers sold or cancelled their subscription right at the bottom of golds correction. We will continue to grow the metal portfolio as the years go on. But these people never seem to learn no matter how many times we go through this. They will always miss these bottoms because they don’t form instantly like they want so they get seduced to where the momentum is instead of focusing on where the potential is.