"We don't trade against the magenta line (intermediate), even when shorter term cycles look like they are due to decline. We use their weakness instead, to add to long positions...The reason is that big money keeps buying the dips...when I start pointing out how an intermediate cycle has been in a 4-5 week decline that typically only lasts 4-6 weeks, then you have to be ready knowing that some kind of alarm is going to be triggered inside the institutional brain, and they are going to wake up and push the buy button. It happens all the time, several times a year."
Shares of the DDM, our preferred Dow double-beta tracking stock, are up $5.31, or 20%, from their July 10 close. Shares of the QLD, the NASDAQ double-beta tracking stock we use, are up $6.75 (19.2%) during the same period.
Some of you are still on the sidelines during this nice market rally. We had a question from a student some time ago that merits repeating here. She came up after a live training session and asked, "How do I get over the fear of making a bad decision?"
"Through learning and practice," we replied. She was involved in learning already, so we went on to discuss paper trading, and how important it is to use paper trading tools available through your discount broker to practice everything you learn about investing BEFORE you commit any money to a new technique or strategy. Repetition anchors your understanding and leads to confidence.
We hope you are actively investing, and if not, that you are paper trading the insights Steve provides on the site each day. Once you have the confidence that you understand how to invest properly, then you can commit money to the market without fear. You'll never look back.
Already we've had very nice feedback from subscribers who are enrolled in Steve's current training series, which began yesterday. If you would like to take advantage of this opportunity, contact us through the website at TheMarketForecast.com. The first session yesterday is available in the archive for attendees to review.
