·
Not using stop orders. For simplicity, use 5%
for most stocks and 8% for volatile sectors. I prefer stops less than the support
line to reduce the chance of stopping out due to normal stock price
fluctuation. Recommend trailing stops (based on current price) for winning
stocks.
·
Not timing the market. Include SH or any contra
ETFs but not as good as timing the market.
·
Not considering different phases of the market
cycle. Some sectors are more favorable than others in different stages of the
market cycle.
·
Not disciplined. If you stick with a proven
strategy, it will work in the long term.
·
When a sector is in full value,
it will be switch to another one with less value. Beware, the market is driven
by institution investors.
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I have several books on sector rotation. Hope one of them would fulfill your need.
1. For those who are into Sector Rotation and Momentum. New book.
Click here for Swing Investing 3rd Edition (Sector Rotation + Momentum)
or enter into your browser https://www.amazon.com/dp/B06XRQ1MMS
Click here for Swing Investing 3rd Edition (Sector Rotation + Momentum)
or enter into your browser https://www.amazon.com/dp/B06XRQ1MMS
3. For couch potatoes. It is simple, rewarding and requiring only 30 to 60 minutes every month. New book.
Click here for more info.
or enter into your browser: https://www.amazon.com/dp/B072L1NZVB
4. If you're not too deeply into sector rotation. Complete The Art of Investing (Kindle version has over 870 pages) is the most cost effective. It misses several chapters on sector rotation that I wrote recently.
5. Profit from market crash in 2017.
Click here for more info or type the following.
https://www.amazon.com/dp/1537509152
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