Sometimes the Best Trade Is the One You Don’t Make
Sometimes the investor has to know when to stay out. Even with the abundance of technical tools available today, there are times when the answer to the buy or sell question is simply “I don’t know.” This could be the result of conflicting answers among indicators. It could also be the result of unclear patterns on the charts. In either case, it is often better to stay out of the market and preserve capital for a better opportunity in the future. Consider a few examples where the analysis is unclear.
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Sometimes the investor has to know when to stay out. |
No Follow-Through
In Figure 19.7, soybean oil was trading in a range from October to December 1996. On January 9, 1997, the market made a strong ...
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