Stock market junkie reviews software#

Staying put would have grown the investment to $27,775 an almost tripling of their money, earning an average annual rate of return of 10.75 percent. For example, the chart below shows how an investor would have fared market timing versus staying put, taking into consideration a $10,000 investment in the US S&P 500 index between January 4, 2009, and December 31, 2018. The history of the stock markets clearly shows that market timing doesn’t work. This creates a very high level of trading volume, thus more market volatility. In addition, attempting to time the markets is even more difficult because products such as ETFs rebalance their portfolios daily. This means that investors have to find opportunities and execute their trades, which is humanly impossible to do in nano seconds. The notion that everyday investors can collect enough data to predict the winning companies and sectors at the right price at the right time is simply wishful thinking.įurthermore, market timers have to go up against the pros and their super computers and algorithms, which process millions of trades in seconds. While Lady Luck can shine from time to time, typically market timers lose their gains by attempting to duplicate any success they have had. In my decades of experience, I have never come across anyone who could consistently time the markets, yet I have heard from several people how they made money timing the market.

Stock market junkie reviews software#

In addition, there are advertisements pushing and pumping everything from gold, cryptocurrencies, commodities, funds, and software programs. The prediction addiction is fuelled by several factors, including those who sell get-rich-quick schemes, so-called experts who promise they have the next big solution to becoming rich, and purveyors of so-called newsletters promising to provide you with the “next big stock pick” if you buy their newsletters. These orphan investors feel that they have the knowledge and ability to predict the future movements of a particular stock, or stocks, and the direction of the stock markets on a consistent basis. Stock market junkies, on the other hand, are actually gambling addicts that constantly get in and out of the markets. This alone can more than compensate investors for any fees charged by an independent wealth advisor.

This underscores the need for most investors to hire “a captain of the ship” to navigate the rough waters. He admitted that during the market crash of 2008, he capitulated and sold some of his stocks! Seeing the folly of his ways, he bought back in shortly thereafter. After all, what would there be to talk about if investors only invested for the long term? Their constant negativity can affect even long-term investors by placing doubt about the efficacy of their portfolio choices.įor example, Derek Foster, one of Canada’s youngest retirees, accomplished that goal by investing primarily in conservative dividend-paying stocks. This provides the media with something to talk about. Yet, much of the daily financial news and stock market reporting is based on short-term thinking. One of the most destructive investor habits, the prediction addiction, must be avoided at all costs by everyday investors.