Making Money in a Frustrating Market

I have to say I really feel for the self-directed investors out there trying to invest their hard-earned money on their own. Having my head in tune to the market nearly 24-hours per day and I still find the recent environment difficult and extremely frustrating.

BUT, I will say when you cancel out all the noise in the media, online, and from colleagues it is not as difficult. Let me explain what I am talking about. Just last week the talks of a massive recession or even depression were the top stories. Whether you had $5000 in an IRA or you managed billions of dollars - the end of the stock market was near.

Just a few days later and suddenly the news is rosy. Instead of global growth falling dramatically, today the story was that global demand for goods is up and the shipping stocks are surging ($EXM $FRO $EGLE etc.). That is one heck of a change of heart in less than a week.

WHAT INVESTORS MUST REALIZE is that the short-term noise that is currently ruling this market is simply that - NOISE. Unless your time horizon is less than 3 years, you need to look at the big picture. (FYI - If your time horizon is less than 3 years you should not be in stocks.)

As I have said for year and will continue to drill into you head - DO NOT MAKE LONG-TERM INVESTMENT DECISIONS BASED ON SHORT-TERM FACTORS.

IF you can do this, you will be a very successful long-term investor. You may look a fool in the short-term, but it is not the battle you are looking to win - it is the WAR!!

My two cents for you today from Psychologist McCall -- HA!