Listen to W. Scott O’Neil, portfolio manager for O’Neil Data Systems, Inc. and president of MarketSmith along with Amy Smith, Investor’s Business Daily radio and TV commentator talk about my entry into the market in December after being in cash for 4.5 months – avoiding a nasty 16.85% drop for our clients.
They emphasize RESNN’s ‘bigger picture’ approach to analyzing the market’s health by focusing on the market as a whole instead of looking at individual stocks. Of particular interest is how they mention that most traders were afraid to enter the market when we did because ‘they are listening to their emotions (fear), instead of looking at the data.
As you know this is one of our most important principles that we preach to up and coming traders … in order to do well in the market, you must take an emotionless, data-driven approach.
The Single Most Important Criteria
Knowing the general health of the stock market is considered one of the most important criteria for most short and medium term traders. Market direction refers to the overall direction of the stock market as a whole, whether it is in a bullish (upward) or bearish (downward) trend.
It is important to invest in stocks that are in line with the current market direction. In fact, 3 out of 4 stocks will follow the general market’s direction. In a bullish market, stocks tend to perform well overall, while in a bearish market, stocks tend to decline.
By identifying the current market trend and investing accordingly, investors can potentially increase their chances of success in the stock market.
Randall Mauro Nailed It
Watch the snippet where they speak about Randall Mauro specifically at: https://youtu.be/RzgdPe_s3F8
Investor’s Business Daily is the nation’s largest daily investment newspaper with 333,000 print subscribers and 24,000,000 monthly page views at their subscription only website.
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