Trading Plan vs Market Predictions 

So what do you reckon? What’s your market prediction?

What are the media reports all telling us about where the markets are going next? Is it all going bull or bearish?

Are you all set to go it alone or more inclined to take your guidance from analysts, media reports or the general movements of the crowd?

It’s difficult when the route isn’t clear or if the information is conflicting but this is precisely when you need to work out your own thoughts and what you think is the correct thing to do.

Don’t you just wish someone would sell a trader map?

Should You Go With Or Against The Masses?

First of all, it should be remembered that going with the masses is not necessarily wrong and trading is about working with the direction driven by the masses. Also, there is a lot of success that is born out of working within the boundaries and functioning in an acceptable manner.

Furthermore, in times of uncertainty, crowds give comfort and assurance so maybe that is the direction to follow. But if we follow this, how can we ever make money out of it? Also, if the mass opinion or surge is wrong then it could make it a very expensive journey.

What does the experienced trader do?

Well, when there is a lot of uncertainty about the general direction of the markets and the economies around which they are built, there has to be a lot of care taken when deciding what the better option is.

Going with the masses is generally not going to provide any serious returns at this time as it is all about trying to figure out what twists and turns are going to occur and when. Then trades have to be set up to take advantage of them.

Find a Method That Works Out Market Trends and Trading Opportunities

Many would say that such predictions are fundamentally impossible but what alternative options do you have? If we want to be a successful trader then the alternative option of sitting it all out and being a follower instead of a leader is not an option since no trading means we have no opportunity for profit.

So we have to seek out a method that manages your risk and tries to work out market trends and trading opportunities. There are many fundamental as well as technical factors that could be looked at. Or indeed anything else that we feel is a helpful guide. What we have to do is to choose our method and apply it whilst acknowledging that there is always a risk that the method is wrong and in uncertain times everything carries a risk.

Committing to a well thought out route is always going to be better than searching and abruptly following different points of view and actions depending on how we feel at the time. In order to be successful, make sure we have a consistent investment system we can rely on.

You may also like


Effective Trading Solutions Pty Ltd t/as is a Corporate Authorised Representative (CAR No. 1267698) and Terry Tran is an Authorised Representative (AR No. 1267697) of Australian Financial Advisory Group Pty Ltd (AFSL No. 475300).

Any information or advice contained on or disseminated through this website is general only in nature and does not constitute personal or investment advice.

You should seek independent financial advice prior to acquiring or disposing of any financial product. All securities, financial products or instruments carry risks. Past performance is not indicative of future results.

error: Alert: Content is protected !!