The Chinese ghost month drops every year. It’s not a question whether it will happen or not but what do you do when it happens. Do I personally believe in it? I don’t. But can I make a winning strategy based on how people would react? Yes I can! That’s why I love technical and fundamental analysis because it shows me to buy a stock that’s still moving up with great value and to avoid stocks that are bad businesses and are trending lower. This is regardless of what other people around me would say. I base my trades on what I see based on numbers.
The stock market is not rocket science but it’s just following a strategy based on technicals and fundamentals that will work for you.
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below. We are doing Qatar this November and Davao this October!
Stock Smarts General Santos — August 25 – August 27, 2017
Stock Smarts Manila — September 9,10, 16 & 17, 2017
Stock Smarts Cebu — September 30 – October 1, 2017
Stock Smarts Davao — October 20 – October 22, 2017
Stock Smarts Malaysia — November 4 – November 5, 2017
Stock Smarts Sydney, Australia — November 11 – November 12, 2017
Stock Smarts Qatar — November 16 – November 19, 2017
Stock Smarts Singapore — November 25 – November 26, 2017
1. The PSEi is not down in every ghost month
If you check the PSEi in the past 11 years (2006 – 2016) you will find out that out of the 11 years the market was up 5 times from the time the ghost months started until the end of the period. This crushes the theory that the market is always down during ghost months.
2. No one can forecast the market even on ghost months
The rule is consistent, no one has a crystal ball on when the market will hit its peak and no one can no when it has hit its bottom. If investors can forecast the market, then everyone who have made billions because they would simply have to sell in July and buy back again at the middle of August.
3. The trend is still your friend
If the stock is in an uptrend during ghost months, don’t sell instead just follow the trend. At the end of the day your goal is to base your trades on logic and a sound strategy and just do it over and over again.
Don’t look for jackpots. There is no shortcut to success in the markets. You must do your time and stick to the basic foundation of stock selection and timing. I really hope that this blog post would bring you closer to profitability and that you use the market to reach your goals of financial freedom!