Warren Buffett’s Advice: Be fearful when others are greedy, and be greedy when others are fearful.

This kind of makes me laugh because the Market Makers are setting this scenario for fast implementers in the market place.

Yes, most people are fearful, yes, there is opportunity.

Have you been convinced by the Pundits it is a bottom, everything is alright? Ready to just jump in so you won’t miss it this time?

Well stay tuned, because you and everyone else are ready to jump in when their looks to be some sunshine. Now if this is the situation, when investors, who are the late implementers in the market place are sitting on the side lines with money in hand, who do you think will sell into this next demand surge?

The Market Makers and the Money Makers (TM) because they know that the pundits have set this as a bottom and there is more to go (to the downside).

Yes, if you are an intraday trader there is alot of money to be made but what if you are a hold and hope investor(HH)? Normally, you will wait til it seems safe, then you will stick your toe in, see it go up a little and as you think it is alright, the selling will start. You will probably be on a little vacation and not have your stops in because you haven’t been taught this risk type management. The stock will surge and while you are on your trip you will think that this time you got it right. A 10-20% gain in a few weeks. You now decide to forget the news, enjoy your trip because you have earned it. Maybe it is time to reward your self, get a massage, go to the expensive restaurant.

Here is the Investors first mistake. They haven’t bagged the profits. They think because they have seen the value go up that it is theirs. So, it is ok to charge a little more to the room or get another round of golf in, and maybe buy that gold anklet for your wife.

HH investor gets home, safe in the knowledge that he made that extra 20% in the market to turn on the TV. He notices that the Dow is now 400 points lower than when he bought the stock. A little worried he turns on his PC and goes on his online account to see that his stock is now 20% down from his purchase price. What to do?

One of the codes we have as Money Maker is that we enter the market with a stop and a target. We know when to get in and when to get out.

If you can apply these simple guidelines to your trading, investing and speculations you will always be able to mange your risk, bag your profits and have actually earned you vacation purchases………

Just keep it in mind…..the profit is yours only after you have taken it.