Easy money makes for temptation. Especially in a market like this. It is hard not to be bullish when the stock market refuses to go down. This sentiment is reflected in the percentage of respondents to sentiment polls that remain bullish. The challenge for investors is to keep to their investment plan. Runaway momentum markets often end with stocks (and their investors) feeling the pain. Whenever you see other people making fast money in questionable investment schemes the temptation is always there to chase. In short, if you don’t have an trading plan, get one. In today’s screencast we note the need to stick to your knitting and follow your own investment style.
Items mentioned in the above screencast:
Down days disappear. (Bespoke)
Sentiment remains bullish. (Pragmatic Capitalism)
Momentum markets always end badly. (StockTwitsTV)
Stock Rabbi, “Don’t be a schmuck.” (The Reformed Broker)