There are certain opportunities that don't come very often. First of all you have to be ready to recognize them and that means being thoroughly prepared. Secondly you have to NOT recognize false opportunities, which means not getting an okay or great opportunity ffrom a once in a lifetime one.
Then, when you get that opportunity, you have to take aggressive, decisive action.
The key may be preparing for such an action so it is possible BEFORE the event takes place. And perhaps plenty of foresight as you may not have very much time to prepare for the greatest opportunities.
When the opportunity finally is there you certainly will be tempted not to take action. After all, those capable of waiting and passing up opportunities for a greater one, or throwing other good opportunities aside ahead of time to prepare to take that bold decisive action often will find it hard to be both patient and aggressive.
But when you get those pocket aces, you have to be willing to go all in. When you finally get that perfect pitch, you have to swing for the fence. When you have an excellent business selling at a significant discount, you have to be ready to jump on it. When the market is breaking out, you have to aggressively get in. When the market is crashing to it's oversold bottom low, you have to recognize the deep value companies.
There is always opportunity, The question is how much and how great is the opportunity, and will you be in position to win from it?
And will you manage your risks the very large majority of the time so that you are still around and have a great bankroll when the moment comes? The majority miss out on the best opportunities and that is why they are forced to actually sell the low because of margin calls and over exposure to declining names, or lack of foresite to protect their risks. Then they think they can wait, and they think the cost of waiting is not severe when it is declining. Then they lose track of it and it goes nuts to the upside and they are too late.
Don't be that guy.
The market I believe is setting up for a once in a life time opportunity. Either the resistance will fail and we rocket to the upside for a "secular" type of run or even "parabolic" or we fail and correct another 40% or so before rallying and trying again. In either case, we will get some volatility to shake people out and disguise the true direction. But rest assured we will make a big significant move, perhaps twice and possibly both will represent amazing opportunities.
To be honest, the market has undergone many "once and a lifetime opportunities" From the roaring 20s to the crash of 1929 to the bear market after the failed bounce to the 1932 bottom to the 1937 top to the 1942 bottom to the 1965 top and other tops to Gold in the 70s to real estate and interest rates and stocks in the 80s to the 87 crash to the Nikkei to the dot com parabolic move to the housing boom and bust and to the banking bubble and bust and the many other opportunities such as the 2000 top the 2003 bottom the 2007 top and the 2009 low. And we are ignoring all the individual sectors and industries and individual companies that offered opportunities.
Unfortunately sometimes there are too many opportunities that people get distracted. They find a good one only to think another is better and sell out of the first one that would have worked out and then they get trapped in what appeared to be value or a good opportunity. Many often focus on too short of time frame and they are like a mosquito on the *** of a donkey(yes I realize the redundancy). They cannot see the big picture because they are too focused on far too many details on far too short of a time frame. They cannot see the Forrest from the trees.
But when you have yourself one of those extremely significant events and you look at it as "the event of a lifetime" even if you get one in decades, participating in selling the high or buying the low won't hurt you as you will have decades to prepare for the next event. I considered the credit downgrade the opportunity of a lifetime to buy. One could have looked at the flash crash as the extreme volatility that provided an opportunity but It was very difficult to sort out the direction for me personally. But both of those opportunities still pale in comparison to the opportunities like 2007, 2009, oil's peak which came well AFTER 2007.
Nevertheless, those are still opportunities at the time that may feel like they are close to once and a lifetime events and you better be ready for the next one vbbecause it's coming.
We have resistance from DOW connecting 2000-2007 and extending the trendline to about 16,000 in the markets. Is it going to mark a top? Is it going to market a significant aggressive shift into a secular bull market run or parabolic move? It very well could. You better be ready to have enough liquidity and enough exposure to not miss out but if you get that dip, you better get in aggressively if you believe the opportunity presents itself.
It is going to be tricky since it could e a legitimate top forming soon or just a fakeout before the breakout. If you buy the dip you could be trapped so you have to know. If you buy the breakout it could be a trap as well and be a fakeout but it might just be a clean rip or clean top... You better learn what you can about technical analysis and everything else under the sun about market's past action in tops, bottoms, and before and after significant major moves. Study up, for soon a great feast may present itself, and those who have sown shall reap the great harvest..
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