Tuesday September 29th Aftermarket.
The stock market really caught fire today for no apparent reason except that TradeStocksAmerica said that the buy on the dippers should start buying again. Seriously though, some say the market is thinly traded with a bias toward the upside because of the Jewish holidays. A more likely explanation other than the two given above is that there is a lot of money on the sidelines wanting to get in the market after watching stocks move up 56% on the indices since March 10th (or 71% for the Nasdaq Composite).
A lot of people that were left behind want to start making money in stocks after seeing the market move up so much. And the people who have made some money want to start making more.
So eventually the largest part of the investor group piles in with their money at almost the worst time possible.
But this causes problems for most people. Since the less educated investor needs confirmation that the stock market is going up BEFORE they buy themselves and it is such a delayed amount of time before their emotions allow them to get fully invested, the market usually has made most of its move up.
And the same goes with being emotionally “locked up” when stocks are going down. People tend to wait too long until they “just can’t stand the falling prices anymore” and throw in the towel when stock prices are at their lowest. Be cautious because history has proven that most people, as a group, decide to buy toward the end of the bull run and sell when stocks are near their lowest. Learn the strategies in The Wizard Training Course and build the knowledge to invest or trade with the odds on our side, no matter what the herd is doing or how the market is acting.