The Market Trend Advisory started in 2017 as a way to help my own stock trading.
I had recently discovered Market School, a course developed by Investor’s Business Daily that was a rules-based system for keeping your investment portfolio aligned with the market indexes.
I was looking for a system that would keep me invested without emotions or opinions – just the facts! – and Market School was a proven approach.
Though it was complicated and had a ton of rules, I loved the system and what it would bring to my investing results.
And I’m always looking for ways to improve my results!
So a year ago, after doing a post-analysis on all my stock trades from 2014-2019, I found the biggest mistake I was making that caused the biggest negative impact on my trading results.
I discovered that I either sold positions or got shaken out of stock positions many times because I fell prey to my emotions; I was acting on how I felt, not what was actually happening.
What the market is actually doing is most important, not what I or anyone else thinks it should be doing.
The huge market rally from April 6, 2020 through June 9, 2020 (as I write this) is a great example. Very few people understand why the markets are going up and in the case of the Nasdaq, making new all-time highs, while the economic headlines are so poor.
The fact is, the markets are in a powerful uptrend, and if you are not invested, you are missing out.
Another example was the huge December 2016 – January 2018 rally.
Before the 2016 elections, the markets started going down in anticipation of the election results.
When Trump was announced as the winner, the markets initially tanked. I remember the Dow was down over 1,000 points in the pre-market.
I thought “This can’t be good! We’re definitely heading into a bear market! I’m going to get out all of my growth stock positions.” And I did.
It turned out to be a colossal mistake! By the market open, the Dow and other indexes not only came back from huge pre-market losses but opened up positive and blasted off. It was the beginning of a huge multi-year rally.
And many other times, I tried to anticipate what the market (or my stocks) was going to do, and almost always these decisions were wrong ones.
So, using the Market School system and adding my own custom indicators, I created the Market Trend Advisory to act as an unemotional “coach”.
It gave me unbiased market information that was based on what was actually happening in the markets.
Simply following it kept me in the market based on facts, not opinions, guesses, emotions or predictions.
I have found it immensely improved my investing results, the missing link!
Using unemotional signals based on facts, not opinions or predictions, will help just about every trader or investor perform better and ultimately make more money.
To your trading success,
Michael Benghiat
Michael Benghiat