Morning Report Wednesday 2 June 2014
Over the past 3-4 months, my reports have repeatedly said “be patient as opportunities will arise” and suddenly, we have purchased two stocks within a week. It can be very frustrating to be sitting on over 50% cash and reading the headlines of “record highs again in US equities” however, the Australian market is now 3% below recent April highs and feeling very vulnerable. Investors should always remember that short term market movements are random and 85% of the time basically sideways. Hence:
Generally Professional traders make over 95% of their profits from 5% of their trades in 5% of the time.
A number of subscribers have asked me why I am purchasing equities when I have an overall negative view for the next 1-2 months. Three obvious reasons stand out clearly:
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