Riding Bull Markets: The Difference Between Pros and Speculators

wtic.2010

Most people do not have what it takes to crush markets. They complain that the stock market is rigged and that it is a form of gambling. This is mildly amusing to me since the very people who complain that stocks are a form of gambling are the same people who don’t read annual reports; don’t do their due diligence; know nothing about accounting; and get their investment advice from CNBC. But alas, I digress.

I personally had no one to hold my hand and teach me how to invest. I was therefore able to objectively decide which investment approach was the best. I had my phase when I was positive technical analysis was the Holy Grail of investing. Then I realized that market makers know exactly what trend lines you are looking at and that they can easily break trend lines and prompt the herdlike reactions they seek from investors. Technical analysis works- until it doesn’t.

There is really only one way to crush markets on a consistent basis, and that is to hop on a bull market and hold on for dear life. My experience and my reading of history tell me that while many investors recognize bull markets early on, most jump ship way too early. The reason? These investors don’t realize bull markets are a whole different beast. While a 50% move in a normal stock would often justify taking profits, a 50% move in a bull market is common. It’s child’s play. It is an indication that the bull market is just getting revved up.

I always know who the real investors are who do their due diligence and who the armchair investors are. The armchair investor will inundate you with stories about how they made 200% on XYZ stock. This very well may be true. The only thing is, they’ll conveniently ignore the huge losses they accrued by speculating on other high volatility stocks. Eventually, the speculative approach will end in tears. It always does.

Bull markets in any given asset are driven by fundamentals. They usually follow periods of intense hatred for said asset. For example, gold was just about the most hated asset on planet earth for about 2 decades. This corresponded with the peak in confidence in central bankers and paper money around the world. Remember when Alan Greenspan was revered globally for his seemingly flawless management of the U.S. economy? Well his reputation has taken a major hit and people are starting to open their eyes to the causes of this crisis. It’s about damn time.

Understanding Bull Markets

There are two components to profiting in markets: 1) recognizing bull markets, and 2) holding on for dear life. If you study the history of markets, you’ll notice that the recognition of bull markets is rather slow. This stems from the fact that bull markets follow bear markets. Investors who have grown accustomed to sustained weakness in a given asset will regard all rallies as a countertrend rally in the context of a bear market. You are seeing this very same phenomenon play out in the stock market as we speak. I’ve already told you, stocks will ironically rise in this debt crisis.

The holding on for dear life aspect of profiting from bull markets is made difficult by the inevitable monster corrections that have people convinced the bull market has concluded. The smart money sees these corrections as buying opportunities; speculators see this as the end of the bull market. Who’s right? Well the smart money is called the smart money for a reason.

Below I’ve included charts from 3 different bull markets in 3 different assets: Stocks from 1982-2000; Crude oil from 1999 to 2008; and Gold from 2001 to the present. I’ve marked for you the respective periods of accumulation (bull market recognition) and the monster intermediate-term corrections (holding on for dear life).

 

Dow Jones 1982-2000

 Crude Oil 1999-2008

Gold 2001-2010

As we approach a truly critical juncture in the bull market in gold, all of you will have to decide whether to be an investor or a speculator. I suspect those of you who go the speculating route will regret it in 10 years. I’ve tried to drill it into all your heads that the hardest thing to do in this next leg up will be holding. I’ve laid out repeatedly why buying and holding is the best approach. Now let’s see how many of you can execute.

Share this article
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  • http://www.locksmithsfinder.com/md/baltimore/giant-locksmith-baltimore.html locksmith finder

    210778 46635Wholesale Inexpensive Handbags Will you be ok merely repost this on my website? I

  • http://www.siomunzus74.com Luigi Fulk

    I simply want to mention I’m all new to weblog and actually liked you’re blog. Almost certainly I’m planning to bookmark your blog . You amazingly come with perfect articles. Thank you for sharing your webpage.

  • http://www.elokings.net/ viagra

    185269 211701Thank you for the auspicious writeup. It in reality was a amusement account it. Look complicated to far delivered agreeable from you! Nevertheless, how can we keep in touch? 658838

  • http://tokumei10.blogspot.jp/ Hong Trentacoste

    this site is cool!! http://tokumei10.blogspot.jp/ thx read

  • http://www.sexo-cam.com/6/claudia-jugando-con-una-polla-en-publico/ full post

    I like looking through an article that can make men and women think. Also, many thanks for permitting me to comment!

  • http://www.spankschoolgirls.com/20/melody-star-le-encanta-tragar-mucho-semen/ discover more

    Very nice blog post. I certainly love this site. Keep it up!

  • http://www.fistinginactiontgp.com/12/haciendo-gemir-a-una-morena-muy-guarra/ good article

    Aw, this was a very good post. Taking a few minutes and actual effort to generate a really good article… but what can I say… I hesitate a whole lot and never seem to get anything done.

  • http://wavingtheflag.info/?p=5324 venus factor

    I don’t see a prompt or indication about how to start writing a blog. I want to know how to initiate one. Thank you..

  • http://tokumei10.blogspot.jp/ Arlinda Beger

    this site is cool!! http://tokumei10.blogspot.jp/ thx read

  • http://www.fiql.com/members/griptext5 penny stock egghead

    How does blogging/setting up a blog help a small to meduim size business grow?

  • http://www.plumppornstars.com look at this web-site

    An intriguing discussion is definitely worth comment. I believe that you should publish more on this subject, it may not be a taboo subject but usually people don’t discuss such issues. To the next! Kind regards!!

  • Pingback: Soulful Deep

  • http://www.yelp.com/biz/scott-yancey-real-estate-las-vegas Scott yancey review

    Excellent weblog here!
    Scott yancey review http://www.yelp.com/biz/scott-yancey-real-estate-las-vegas

  • http://www.all4scrapebox.com Auto approve list

    I think other website owners should take this site as an example , very clean and fantastic user genial style and design . “Only I can change my life. No one can do it for me.” by Carol Burnett.

  • http://www.porada.sk/archive/index.php/t-235439.html andreus s.r.o

    831388 702589Merely wanna state that this is extremely useful , Thanks for taking your time to write this. 233394

  • http://tiny.cc/sugaringzuerich Waxing Zurich

    It can be applied as an anti-bacterial, so that you most likely really should use Something like that, Vinegar and lime juice may even get the job done.

  • http://4rt.us/homestdtest24675 std testing at home

    In today’s globe, a million people do that a working day–it isn’t a large offer. This picture is so disquieting is that of the Moon. The death card is one of the Significant Arcana.

  • http://www.sweetandsavoryfood.com/2012/07/pimento-cheese-spread.html Alise Doland

    I truly appreciate this post. I have been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thank you again!

  • http://bit.ly/1uCzYzm Waxing Zürich

    I experimented with this and it did not function, I had it cooled to room temp and every thing. It hurt like heck but did not take any hair.

  • http://www.tuxmachines.org/node/66712 Ellis Bevelle

    Hey, just searching about some blogs, seems a pretty nice platform that you are using. I’m currently making use of WordPress for some of my web sites but seeking to change one certain of them more than to a platform similar to yours as a trial run. Anything in particular you would recommend about it?

  • Pingback: Jokes

  • http://www.nicemilfsex.com additional hints

    I enjoy reading an article that can make men and women think. Also, many thanks for allowing me to comment!

  • http://dorako.digart.pl/ akcesoria

    Hello! Achieve you identify if they make several plugins to avoid with Explore Engine Optimization? I’m frustrating to get my blog to rank in support of some embattled keywords but I’m not bearing in mind vastly safe gains. If you identify of some satisfy let somebody in on. Welcome it!

  • http://z-url.us/athomestdtest12838 home std test

    The meanings will become clearer, day by day. Furthermore, postage is inexpensive simply because greeting cards are light-weight. Does it appear to refer to a person or an occasion?

  • http://www.youtube.com/watch?v=LH5koAPe2SI funny commercials

    here are some links to web sites that we link to because we feel they’re worth visiting

  • http://www.e-gratka.net/ogloszenia/ogloszenie.php?id=2049 założenie spółki poznań

    Hi, Neat place of duty. In attendance is a problem together with your web locate in internet explorer, would test this… IE nonetheless is the marketplace chief and a enormous factor of people will neglect your enormous inscription due to this problem.

  • http://arthritisreduction.com/node/327615 Keshia Nothum

    You developed some decent points there. I looked more than the internet for any problem and found most individuals goes as well as together with your web internet site.

  • Pingback: iherb coupon

  • http://www.youtube.com/watch?v=0-JBc001nXY painful fails

    below you will obtain the link to some websites that we feel you ought to visit

  • http://kuponkodu.over-blog.com/2014/06/kupon-kodu.html kampanya

    Is it possible to share it on my blog if i do show source ?

  • http://fashionnews.blogger.ba/arhiva/2014/06/11/3673600 ray ban discount sunglasses

    Tiffany Jewelry available.In which case you can certainly go for right up an individual that you are ready to be able to to receive. Tiffany consists of enthusiastic many keep towards guidebook of such Fine jewelry planning habits as a result of old creating? Tiffany sterling silver necklaces an excellent impressive online business.Necklaces encouraged by means of Tiffany hopes and dreams to duplicate a good magnificence moreover luxury in the trusted Tiffany items,read more with http://www.yolio.co.uk

  • http://LesbianCams.org/ live lesbian sex

    Thanks for the excellent post in your website, it actually gives me an insight on this topic.*~“:

  • http://chatlaos.com/index.php?p=blogs/viewstory/123305 free skype credit voucher codes 2013

    Now I am going to do my breakfast, when having my breakfast
    coming yet again to read more news.

  • http://modemode.sblo.jp/article/28896758.html?q=node/add subway surfers generator

    Hello, this weekend is fastidious for me, since this time i am reading this fantastic
    educational paragraph here at my house.

  • http://xunmeng.org Click For MORE

    tiffany discount jewelryfeatures a wide range of expensive jewelry for your personal wedding day; marriage jewelry, pendants, happens to be etc. Marriage costume outfit expensive jewelry is certainly homemade projects within a wide range of material in addition to hue collaboration; platinum coated or perhaps rare metal plated by using gemstone and stones,tiffany pendants,inside color selection combo in which using a contented natural beauty to your.

  • http://CamGirls.ws/ cam girls

    thank you thank you thank you! i can’t kind much more than this!!

  • http://www.whereto-buygarciniacambogia.com where to buy garcinia cambogia extract

    It is laborious to search out knowledgeable people on this matter, but you sound like you realize what you are speaking about! Thanks

  • http://BustyCam.net/ big tits cam

    we’re working with plastic kitchen faucets at home due to the fact they are quite cheap and you can conveniently replace them if they broke::

  • Pingback: Roof Repair Colorado Springs

  • Pingback: iherb coupon code

  • http://aikiweb.co.uk ralph lauren cheap

    discounted tiffany jewellery may very well be most certainly understood to be Bracelets constructed from economical precious metals and additionally counterfeit or perhaps semiprecious stones. You’ll find it recognized as trend diamond jewelry, trash fine jewelry it supposed is made like a less costly and affordable intended for repurchasing as a way to fit in a wonderful and brand-new garments type.these are generally primarily constructed from low cost ,tiffany necklace with heart,gemstone that include rhinestones and hang for alloy, silver antique gold plated steel

  • Pingback: iherb coupon

  • http://www.rashtpet.ir/wtop/index.php?a=stats&u=trista26yhw fulham locksmith

    Hey very cool web site!! Man .. Beautiful .. Amazing .. I’ll bookmark your website and take the feeds also…I am happy to find so many useful info here in the post, we need develop more strategies in this regard, thanks for sharing. . . . . .

  • Pingback: code promo iherb

  • Pingback: iherb coupon

  • https://twitter.com/ConnectDirector connectdirector online portal

    My compliments, beneficial post and an excellent site. Also your post has inspired me to start writing on concerns equivalent to what you are carrying out. We are creating a premium on-line portal a specially-developed web site that brings information with each and every other from diverse sources in an uniform way. The Connectdirector Online Portal – advertising networks & match producing community portal is expert networking on the Connectdirector “all in one” premium online portal supplying identity networking & social networking, contacts, matching, on-line content material, (net) marketing & (enterprise help) services. An special multi-language internet portal notion with a international exposure and a nearby concentrate on each rich higher high quality on the internet content material and dynamic database generated listings for matching individual interest, enterprise interests and social interests and wants. We at Connectdirector marketing networks and neighborhood portal are an match making authority in guiding and decreasing barriers by direct linking business and social interests and wants interests on the principles of joint outcome, integrity, compliance and excellence. Summarized Connectdirector is Networking, Contacts, Matching, Content material, Advertising & Options.If you did not go to our web website however and/or you are not a member, then please sign up as we actually want to know your thoughts so we can boost our on-line portal. On our website you can commence simple to grow your network contacts!

  • Pingback: iherb coupon

  • http://www.kompostowniki.pl/forum/profile.php?mode=viewprofile&u=6356 architektura

    Howdy. Fantastically cool blog!! Guy .. Charming .. Amazing .. I’ll bookmark your site and take the feeds also…I am jovial to find frequent helpful in sequence here in the article. Gratitude for sharing…

  • Pingback: rock hill plumbers

  • http://sites.google.com/site/controlarlaansiedad/ansiedad-sintomas-y-cura detener la ansiedad

    just beneath, are numerous totally not associated web sites to ours, nonetheless, they are certainly worth going over

  • Pingback: baton rouge piano lessons

  • http://www.youtube.com/watch?v=BIzzC-nbX2k top commercials 2014

    the time to study or pay a visit to the subject material or web pages we’ve linked to beneath the

  • http://www.mundoknet.com/category/promocoes/ Seguidores

    When visiting blogs, i often try to find a really nice content material like yours ,

  • http://cisningkataloging.eu/jakikantor.html ranking kantorow online

    I have been examinating out some of your posts and i can state nice stuff. I will surely bookmark your blog.

  • Pingback: sprei kingkoil

  • http://www.interiordezine.co.uk/ray-ban-c-726.html cheap ray ban sunglasses

    Coloration represents a primary role in a prom dress during the particular nighttime. It ought to go with the skin complexion. For this complementing photograph, you’ll be able to accentuate the determine with the use of weight loss shades just like wines, deep grey, do green, midnight violet, wine red, powdered cocoa, and the basic shades involving light tan, black, dreary, gold, gold, and taupe. Prom dresses are typically official bash outfits, lengthy and naturally breathtaking. cheap green prom dresses may very well be using the theme of the occasion as well as they’re able to you should be standard basketball outfits. There isn’t a regular technique to define the actual “best promenade dress”. Oahu is the the one that can make you feel gorgeous and convey the appropriate image-sweet, not guilty, alluring or simply spectacular. Typically the most popular prom dresses are usually silk, sequined, antique styles, small black dress, the actual irregular sprained ankle treatment gown, the particular hanky hem sprained ankle as well as the vintage Cinderella basketball costume.

  • https://www.youtube.com/watch?v=6hRi9rP-d7Y rollover ira taxes

    this was a genuinely good quality post. In theory I’d like to compose like this also – taking time and genuine work to generate a very good short article. Really what I required. Thanks I’ve been on the lookout for this sort of information to get a long time.

  • http://www.youtube.com/watch?v=Dtp-0MmQVNE biggest trucks in the world

    just beneath, are several absolutely not associated websites to ours, nonetheless, they may be surely worth going over

  • http://www.acai.com.sg/about-acai-berry-singapore weight loss juice singapore

    I discovered this web site and I have to say that it looks fantastic and I am glad to be a part of this community. ._________________________________ .Dayton Roofers

  • http://www.youtube.com/watch?v=aVCNoks14vc Louisville KY For Sale By Owner

    I am commonly to blogging we genuinely appreciate your site content. This content has genuinely peaks my interest. Let me bookmark your website and maintain checking for initially time info.

  • http://www.petsmart.com/dog/waste-disposal/cat-36-catid-100113 buy viagra

    The data talked about in the post are several of the ideal accessible

  • http://sl2.hartwig.szczecin.pl/test.php?a%5B%5D=%3Ca+href%3Dhttp%3A%2F%2Fcoocoonhome.com%2Fimmobilier%2Fwidget%2Fservice-immobilier-wikimmo%2Fmediawiki%2Findex.php%2FWhy_You_need_a_Guide_When_Hunting_ poland hunting prices

    I truly appreciate this post. I have been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thx again!

  • http://www.escoot.co.uk/ ralph lauren polo online

    The thing, Tiffany heart necklaces on the start the century if they were made in greater comfort the company income. Select a Tiffany heart necklace which goes clearly together with their growing older and the body sort. necklace,Portions regarding ear-rings will likely engulf the fugace female that work well for almost any volumptuous number. Small to medium sized breakable diamond necklace necklaces of proper silver or gold necklaces are best for less significant support frames.

  • Pingback: Truck Driving Jobs