The market will begin its first trading day for September 2011 today. As we await the unemployment claims news, I would like to share a trading tip: Buy the Panic, Sell the great news.
I know this is so cliche, and you must have read this somewhere else already.
However, many people are not following this rule due to one reason – IMPATIENCE.
We always have the impression that we will keep making money. But we should stop. Just buy the bad news, sell the great ones.
As you can see last August, we had waves of bad news, and many people still think that the world is gonna end. Even hurricane IRENE was portrayed as a disastrous beast just before the light effects of Irene came.
Buying this panic now together with the smart money that has sent stock prices slightly up last week.
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