Can stock traders really profit without forecasting?
Yes, according to according to Edgar Genstein, the author of a book entitled “Stock market profit without forecasting” In his book, “Stock market profit without forecasting” Edgar Genstein offered up two of the most important paragraphs probably ever written on investing, according to Jeffrey Saut, the chief investment strategist at Raymond James.
Stock market profit without forecasting is an investor classic. Even though the book was written more than 60 years ago, it is worth revisiting considering now that volatility VIX is back in the markets.
As Darren Winters explains, the gist of Stock market profit without forecasting is that during major sustained advances in stock prices, which usually occurs every five to seven years of each decade, the investor can complacently hold a list of stocks which are currently unpredictable. Put simply stock investors can sit on their hands and still make profits.
They doesn’t worry about the top because they know that they are never going to sell at the top. In a long-term secular bull market the investor knows that the chances are overwhelming in favour of the bullish view that they will get far better prices by waiting until after the top is passed and a probable reversal in trend can be identified that they will ever get by attempting to anticipate the top and get out on the nose.
“In my own experience, the largest profits we have ever taken have come from stocks purchased while they were making a new high in a market which was also momentarily expecting the top” – Edgar Genstein
As Darren Winters explains, the idea of profit without forecasting, is based on the belief that the current price of the stock is unimportant. “It is the direction of the price movement that counts. It is always probable, but never certain, that the direction of the price movement will continue” claims Edgar Genstein.
So when is the best time to sell according to the author Stock market profit without forecasting, Edgar Genstein.
“Soon after it reverses is time enough to sell. You should sell when you wish you had sold sooner, never when you think the top has arrived. That way you will never get the very best price — by hindsight, your individual transactions will never look daring. But some of your profits will be large, and your losses should be quite small. That is all that is necessary for a satisfactory, enriching investment performance”.
Stock market profit without forecasting is James’ Jeff Saut chief investment strategist at Raymond James most important investment book. James’ Jeff Saut is currently looking at how a trade war could hit investments.
“DO NOT read them just once. Go off to a quiet spot that invites contemplation and READ THEM SEVERAL TIMES. Then reflect on all of the mistakes you have made in trading and investing. Bells will ring, and curses will be uttered if you are truly honest with yourself” Raymond James.