Thursday, July 6, 2017

Why Sector Rotation sometimes not working




·         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

 
 2. Sector Rotation.
Click here or type the following
http://www.amazon.com/dp/B01BQQYZYI
 
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.
Click here for more info. or type the following
http://www.amazon.com/dp/B01AASN2GA
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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