STOCK MARKET TIMING TIP #6: CHECK FOR SWEATY PALMS!
CHECK FOR SWEATY PALMS: The best entry points in the stock market are often the times when it feels the scariest. This is because the media has an uncanny way of causing negative investor sentiment with a barrage of relentless bad news at stock market bottoms. Recognize that key turning points in the market are usually counterintuitive.
The hardest, yet best time to buy is often when everyone else is selling and no one else is buying. Conversely, the most comfortable, yet worst, time to buy is usually when no one is selling and everyone else is buying. If your palms aren’t sweaty and you’re not afraid to buy, you’re probably not at a good stock-market bottom. Always remember that having sweaty palms caused by media-induced fear is one of the key prerequisites to buying into the stock market at an optimal time.
Comment: Find several ways to monitor fear, worry, and apathy in the stock market. Notice the outspoken people who are notoriously wrong at key turning points in the market. While I like to notice whether I have sweaty palms or not, I also notice when the clamor of worry or the confidence of short-sellers becomes excessively loud in volume or number.
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“Nobody rings a bell at the market bottom.”
Wall Street Adage