As the Federal Reserve has back-stopped the market for six years
with massive quantitative easing, the upswings have gotten more
robust. On the other hand, the collapses have become more epic as
well in the past few decades with Federal Reserve intervention.
Just look at the tech collapse in 2000-01 and the financial
collapse in 2008-09. Federal Reserve intervention was not as robust
as it has been in the last six years but the markets still had epic
collapses. As an investor and trader, the swings test the best in
the business and ultimately mean the charts must be read
constantly. While no investor or trader nails the exact bottoms or
tops every time, the best traders will consistently pick close to
those key points. In addition, the best traders and investors are
the ones that do not let emotion take control EVER. Emotion is the
one thing that will cause more losses than anything else when
investing. While the average investors will chase markets up and
down, the pros have that ability to hold back, waiting for the
perfect technical setup.
The future promises to be wild as we all will see the results of
the massive money printing done by the Japanese Central Bank,
European Central Bank and Federal Reserve.
Gareth Soloway
InTheMoneyStocks