Liquid Millionaire - isaco

You can choose the best investment fund in the world but if you invest
in it and you are wrong about the trend of the market, your portfolio
is going to suff er. Th is happened to thousands of uninformed people in
the great bear market of 2000-2002 and in the bear market that started
in the last quarter of 2007.
Wit h ISA Tre nd I nve st i ng , getting your timing right is crucial. Many
people mistakenly think that it is all about choosing the best investment
fund to park your money in. Whilst fi nding a high quality fund is
important, it’s not as important as getting in sync with the market’s
trend. As a reminder, here is what I mentioned earlier about how timing
the market fi ts in with this new approach to ISA investing.
Instead of simply buying and holding, you are active. By understanding the
overall trend or direction of the market, you invest into the market when
the confi rmation of the trend is up, and switch out of the market when the
confi rmation of the trend is down. Th i s i s t h e m ost impo r t ant el e m e nt in ISA
Tre n d Inve sting.
Th is fi rst diff erence is the one that will lead you to either success if you get it
right or failure if you get it wrong. Even if you fi nd the best investment fund
on the planet, if your trend reading is wrong, meaning your timing is wrong,
you will fail.
Th erefore in your analytical toolkit, you absolutely must have a reliable
method to determine future market direction. And if your desire is to
become profi cient, it is going to take time and patience. Th roughout your
journey to tax-free riches, you will ideally need to know if you are in a
bull (up) market or are you in a bear (down) market.
Key Questions You Have to Ask
But that is not enough. If we are in a bull market, are we in the early
stage or the later stage? And more importantly what is the market doing
right now? Is it weak and acting badly, or is it merely going through
a normal decline (typically 8% to 12%)? Th i s me a n s to w i n w it h ISA
Trend Investing, you absolutely have to know the state of health that
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