Subscribe to Our Free Newsletter
 


HOME
LOGIN
SUBSCRIBE

Strategy Information

Subscriber's Q & A
Pro Timer Strategy
Conservative Strategies
SmallCap Fund Timer
Bond Fund Timer
Gold Fund Timer
Sector Fund Timer
U.S. Dollar Fund Timer
ETF & Stock Timer
Stock Market Timing
Testimonials

Subscriber Reports
WEEKLY COMMENTS
Editor 's Report
ACTIVE STRATEGIES
Sector Fund Timer
SmallCap Timer
Gold Timer
CONSERVATIVE
Conserv. S&P Timer
International Fund Timer
Conserv. REIT Timer
Diversified Timing Port.
AGGRESSIVE
Bull & Bear Timer
ETF Timer
Bond Timer
U.S. Dollar Fund Timer
Stock Timer

About Us
Subscriber Support
Email Policy
Terms of Use
Privacy Policy
Prior Commentaries
Editor's Blog
Site Map

Subscriptions
Free Two Week Trial
Free Timing Newsletter

 


  •
      Weekly Report from the Fibtimer Stock Market Timing Services


Instincts vs. Market Timing Strategy

Humans are born with basic instincts for survival. They need to protect themselves at all costs.

Certain critical instincts are inborn, such as hunger, self-survival, etc. But humans are complex creatures. We also have learned instincts, habitual ways of behaving that are so automatic and unconscious that they seem as if they are part of our very fabric.

Acting Without Thinking Logically

For example, as you drive in traffic, you "instinctively" slow down or change lanes when the car in front of you seems to be driving erratically.

You may have noticed that many drivers will make the lane change to avoid slowing down, and will even speed up to pass to take advantage of everyone else slowing down.

People react instinctively. Some act without thinking logically about their options, without taking steps to avoid possible danger. They often tend to make poor decisions.

Behavioral economists have demonstrated that people also make automatic, unconscious decisions when trading the markets.

Most people are extremely risk averse. They enjoy the pleasure of a sure win, even a small one, but try to avoid the pain of losses at all costs. Yet there is no logical reason to show such an asymmetry regarding their decision making.

Investors also sell their winning trades prematurely so they can lock in their profits.

These unconscious and automatic decisions reflect a strong and universal human desire to avoid risk.


Fibtimer FREE MONTHS Offer!

Conservative S&P Timer
Ranked #1 on TimerTrac.com
Bull & Bear Timer
10 Year Results

Fibtimer Timing + 244.8 %
3 Year Results
 Fibtimer Timing  + 57.2 %

Sleepless nights as your investments are consumed by a volatile Wall Street? Consider Fibtimer 's trend trading services. Our trading plans are unemotional and are always invested with the trend, which ever way it is headed.

Fibtimer 's timing strategies MAKE MONEY in BOTH advancing & declining markets. No more sleepless nights. No more upset stomachs.

We profit year after year after year. In fact, we have been timing the markets successfully for over 25 years.

Join us and start winning!

We are currently offering 2 or 3 FREE BONUS months to new subscribers.

Special Offer - CLICK HERE NOW


At FibTimer, all of our strategies are non-discretionary. Emotions do not play a part in our buy or sell decisions. Our strategies offer disciplined execution of non-emotional buy and sell signals.

The reason for following any timing strategy is to remove yourself from making emotional trades. To remove yourself from the herd, which is often headed in the wrong direction.

Towards the nearest cliff.

Playing It Safe

As humans socially evolved, they learned to protect their survival by playing it safe.

Playing it safe may be prudent for very long-term investors, but for shorter-term investors... those who are unhappy with the losses incurred during numerous inevitable downtrends and who wish to avoid those losses or to capitalize on the downtrends, fear of risk and uncertainty is an impediment to success.

It is necessary to identify this need for safety and security and "reprogram" yourself to work around it.

Following The Masses

A common illustration of risk aversion happens when market participants follow the masses, as if they are wild animals banding together as a herd for protection.

They look toward others for direction, regardless of the consequences.

During a typical market correction, investors increase their selling the lower the market goes, with huge numbers of them selling near the bottom. The same thing happens in every decline.

As more and more people see prices drop, more and more participants sell. It is scary to see your investment values plummet.

Is the news going to get worse? Will the prices reach even lower lows?

Most people are afraid of pain. They are afraid that the price may go even lower, and they sell because they don't want to lose even more money.

Of course not all investors will sell. Some will become so panicked that they will be afraid to acknowledge their losses and want to leave them on paper, hoping that the prices will return to previous levels in the coming weeks. During a bear market this can be an even worse decision.

The masses try to avoid risk and pain, and by doing so, they tend to behave automatically. Repeating the same actions time after time.

Devoid Of Emotions

Experienced market timers, in contrast, react more decisively.

They carefully follow a trading strategy that is completely devoid of emotions. They follow through on buy and sell signals with absolute precision.

They know that any one or more buy or sell signals may be wrong, but they realize that to trade profitably they must learn to trust their timing strategy and act on it. Only over time are substantial profits realized, and only by those market timers who stay the course.

Think Outside The Box

If you want to be a winning market timer, you must learn to identify your need to follow the masses, and teach yourself to avoid doing what your need for security compels you to do.

You must reprogram yourself to think outside the box. Rather than follow the masses, you must follow your timing strategy, which may be contrary to what most people would do.

Over time, and with extensive experience, you will develop the skills that will allow you to trade decisively.

Once you have reprogrammed your behaviors, you will not be tempted to follow the masses, but will instead recognize these feelings for what they are. Instincts for survival, which may work in the physical world, are likely to cause poor decisions and loss of capital in the financial world.

Rather than Following The Masses, you must learn to follow a timing plan, which is not affected by the emotions of the masses.

The more decisively you can follow the timing strategy, the more profits you'll realize.


Recent articles from the Fibtimer market timing services;



© Copyright, Market Timing Strategies, Inc., All Rights Reserved.     

Fibtimer reports may not be redistributed without permission.

Disclaimer: The financial markets are risky. Investing is risky. Past performance does not guarantee future performance. The foregoing has been prepared solely for informational purposes and is not a solicitation, or an offer to buy or sell any security. Opinions are based on historical research and data believed reliable, but there is no guarantee that future results will be profitable.


Top of the page

 
`

© Copyright Market Timing Strategies Inc All Rights Reserved

Design by LightMix