Investors, for the most part, are a confused bunch. And, I hate to say it, but that includes some of my 17,000 weekly newsletter subscribers. Not a day goes by that I don’t get the same question asked by different readers.
Maybe that’s my fault for not being as clear about some of the ins-and-outs of trend tracking as I think I am. This is what the most frequently asked question sounds like:
“I have owned this ABC fund/ETF for some time and recently I’ve been reading that it is no longer recommended and a broker friend at ‘I-want-to-sell-you-a-commissioned-fund, Inc.’ also says I should get rid of it. Please give me your opinion.”
Usually, when I look at the chart, it’s a pretty decent fund that is within 2-3% of its high and definitely following the current uptrend. Additionally, it has held up during market pullbacks similar to other funds in that category.
My answer is the same every time. First, stop exposing yourself to information overload and second, stop listening to people with an agenda. Focus on what I write on a weekly basis: Figure out the highest price of the fund/ETF since you bought it and set a trailing sell stop point.
That will eliminate any kind of guessing game and will keep you invested in an up trending fund until the market reverses and your sell stop gets triggered. This effort will take you 2 minutes a day of checking prices, and it keeps you away from the media and their ever changing stories.
If I can only get you to eliminate the daily hearsay bombardment, and you thereby can separate your emotions from your investments, you will become a better and less confused investor.