Paddle Your Canoe

At some clip in your life you have got been on a river in a canoe and hopefully you had a paddle. You cognize about being up the brook without one.

You quickly learned that paddling up watercourse is much harder than paddling down stream. The lesson of going with the flow can be applied to many facets of life and especially to the stock market. In the brook it is easy to cognize which manner the current is flowing, but in the market it is much more than difficult. At least that is what Wall Street desires you to think.

On the river there are markers and pilotages buoys to assist you with your passage, but in the money human race there are few such as true indicators. Actually it is very easy to determine the flow of finances in the market. Standing on the shore are people (brokers) cheering to travel to the right and another adjacent to him screaming to travel to the left. “Buy, buy, buy”. Very few of them cognize which manner the current is headed. You have got to calculate this out yourself.

Fundamental analysis is excellent, but it is very poor to allow you cognize when and where to paddle (put you money). There are many technical tools available, but these tin be hard to master for many people and few brokers cognize or care to learn them. However, there is one very simple method that makes work.

That method is too simple for brokers who desire you to believe that you need their “expertise”. They sure don’t want you to happen out as you won’t have got to pay them commissions any more. The paddle you need to have got to impel in the right direction is called the 200-day Moving Average Paddle and you can get it free if you cognize where to look. You can make this yourself, but if you have got a computing machine just travel to the web land site www.bigcharts.com and chink on their Synergistic chart box and they will do all the work for you. You can make this at the library of you don’t have got a computing machine at home.

Using an index such as as the SP500 you easily see that when the terms (your canoe) is above the 200 line (the current of the river) you should be a buyer of pillory and common finances and when the SP500 terms is below the 200 line you should be in a money market (even if it only pays 1%). You don’t desire to be under water. This is a simple manner to see the direction the market is flowing and volition maintain you from losing money when the market starts down.

No 1 cognizes when the current will change. And don’t attempt to guess. Let the river (market) state you the direction of flow.

Get yourself one of those good paddles and learn to maneuver your ain canoe.