After the Rain comes Sunshine

Dear Speculators,

The stock market is like one big party. Ultimately, there are 5 kinds of people in a party. Those who come too early, those who show up on time, those who come in a little late, those who show up at the peak of the party and finally those who show up when the party is about to end.

Those who come too early will see their stocks flat for a prolonged period of time and when the party starts, their stocks take a one way trip up. Those who show up on time will see their stocks rise instantly and will enjoy the ride throughout. Those who come a little late to the party have missed out on some huge profits but they take as much as they can get before the market peaks. Those who come in when the party has peaked have nowhere else to go than down, they lose money in the market and try to cut their loses and exit the market. Those who come in when the party is about to end haven't been paying attention, they thought the market had bottomed out and it was a good time to enter but they were wrong. They lost a lot of money very quickly and crashed along with the market.

In the stock market, timing is everything. It can define the success or failure of an investor. You buy stocks when the party starts and sell when the party peaks. Every decade has its party and every party comes to an end. The party is about to start, what time are you arriving?

Emeka Ucheaga,
Managing Partner,
Emeka Ucheaga Advisory

Comments

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