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As a trader, contrarian thinking can trip you up. It’s important to recognize inefficiencies in the market ... but be careful to not become biased the wrong way. Tune in as Tim Bohen has a smart tip to help keep you out of big trouble.
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One thing that’s key in your market education is to learn to follow the trend. Look for those steadily uptrending stocks.
Or you can look for steadily downtrending stocks if you’re interested in shorting.
But be careful! It’s easy to get tripped up. A lot of traders short steadily uptrending stocks just because they fell in love with the thesis.
Here’s a great example: AMC Entertainment Holdings Inc (NYSE: AMC). This stock has been grinding since the meme stonk movement started back in January…
And traders still try to bet against the trend and short it. Hedge funds have gone out of business or taken out more equity infusions to stay alive. All because they tried bucking the trend!
So if a billion dollar hedge fund can blow up, why would you think you can fight the trend?
Work on building your account before you try to short. Understand where the market is.
Tune in to the video for a five-year chart view on the S&P 500. You’ll see how the market has been steadily uptrending. This is the time to go long more.
When the market steadily downtrends, you can consider going short.
If you’re new and inexperienced, don’t try to compete with more experienced traders.
Play it safe! Don’t get caught up in fighting the trend. You can easily blow up your account and end your trading career.

#StockMarket #Trading #Stocks
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.

By Stock Chat

where the coffee is hot and so is the chat

10 thoughts on “How you can avoid the biggest trading mistake in 2021”
  1. Avataaar/Circle Created with python_avatars Molek Polvarkis says:

    Awesome as usual

  2. Avataaar/Circle Created with python_avatars Rey Montemayor Jr., PhL says:

    Oh! Tim says to be a contrarian but against "the main stream media" (chat pumps include) "BUT recognize the market". So we join the market trend NOT the media frenzy that may be all talk just to buy or short a stock for undisclosed reasons.

  3. Avataaar/Circle Created with python_avatars Rey Montemayor Jr., PhL says:

    So, do we go with the trend or be a contrarian and go against the trend? Tim says not to fight the trend, yet says to be a contrarian and not follow the trend? Need to replay this again. Maybe the answer is: IT DEPENDS!?

  4. Avataaar/Circle Created with python_avatars Bass Fever says:

    Great video thanks

  5. Avataaar/Circle Created with python_avatars New Investor says:

    cheers buddy great info

  6. Avataaar/Circle Created with python_avatars Maximus "Pure Blood" Muchimus says:

    Great stuff!

  7. Avataaar/Circle Created with python_avatars Anthony Meza says:

    What does it mean when we get stopped out? Does it apply for shorting?

  8. Avataaar/Circle Created with python_avatars Handy Rams says:

    I'm good at buying tops.

  9. Avataaar/Circle Created with python_avatars RudolphAnthonyG says:

    👍

  10. Avataaar/Circle Created with python_avatars Pepe Epstein says:

    Cool bear picture! Great video ! Turtle Traders are a testament to following the plan .

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