Important Note: tradethemoods.com is a forum that enables me, to convey to you, the insight provided by a set of tools I developed over the past 4+years. Although the information provided is free of charge; we consider this information proprietary and only for our readers. We live on contributions at this time. We would much prefer our readers tell their friends and colleagues about the site than share the information we provide. The bottom line is we will provide information consistent with the level of contribution to this site (please see the Supprt TtM option). That’s all; and I’ll get off my soapbox now.
Trade The Moods (TtM) is dedicated to providing a view of the market which provides relief from the day to day stress of that same market. TtM is not a class of equities, nor is TtM a single tool or strategy. TtM is a combination of each of these which collectively enables the investor to become more intimate with the market. As you better understand the individual and collective market moods, you raise your market consciousness above the day to day noise. When you are not distracted by the noise, you are more inclined to make decisions on a combination of factors that doesn’t include fear.
I like to say, “Be one with the market.” This is an often overused phrase but the sentiment it conveys is exactly where we want to take you with this site. I’ve read a lot of books on the market and trader psychology and the Technical Analyst have capitalized on the human psyche when it comes to trading in the market. In a nutshell: We have trouble accepting loss because our ego disturbs our logic.
For this reason we get out of trades only through desperation which is generally late in the trend.
We fear a repeat (whether it is ours or someone else) of the last scenario. Therefore, we tend to sit on the sidelines until finally; we jump in because this trend may go forever. The trend will not continue forever so you probably got into the game a bit late.
So what do we do? If we want to be a responsible adult we hire a financial advisor and pay them 3-5% of our investment (with fund loads) annually to protect us and give us peace of mind. In the first decade of this century my “peace of mind” left the station on two occasions. Figure 1 illustrates this scenario.
I don’t know about you but as it turns out, my financial advisor did not have a crystal ball or any advanced training to do much about the losses I incurred. After the second debacle I had had enough. I was a wreck since I’d just witnessed a decline of almost 50% of my hard earned investments. I decided to do something about it and tradethemoods.com was born. I hope you enjoy the information I and your fellow readers share.