The Stock Market Can Be One of the Best Wealth Creation Vehicles If Used Correctly
"The most important lesson you have to learn in stocks is that you must have a proven, reliable method to accurately determine what kind of market you are in. This will stop your losses and pull you back up winning."
'Direction of the Major Market is Everything'
So if you buy stocks when the market is trending higher, you have a 75% chance of being right. But if you buy when the market is trending lower, you have a 75% chance of being wrong.
No stock is immune. The general market (i.e., the major indexes, primarily the Nasdaq Composite and S&P 500 who does not only dictate the US market, but at most times, the direction of world market) exerts a tremendous pull on individual stocks. Even the strongest leaders will have a hard time moving higher when the market is heading south. If you just blindly hold your stocks and take no defensive action as an uptrend slips into a downtrend, you risk giving back all of your hard-earned gains.