Liquid Millionaire - isaco

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Liquid Millionaire
For example, if the trend of the stock market is up, it takes a lot of selling
to change the trend from up to down. By measuring how much selling
is going on over certain time periods, you can determine when the trend
is about to change or has changed and you can then act accordingly ie;
switching some of your holding into a cash based fund or completely
switching out onto the sidelines.
How to Get on the Inside
Reading the market’s health gives you inside knowledge of future market
direction and if the market’s health has become sickly, it tells you that if
you stay invested, your investments have a high probability of dropping
in value.
It is helpful to be aware that it’s impossible to time getting out at
the very top of the market or getting in right at the very bottom.
But what you can do, when you know what you are doing, is get in at
the first or second floor of the elevator instead of the ground floor.
And you can get out not at the very top floor but one or two below
it. You therefore only get in or out when a new trend has clearly
been established.
Why can’t you get out right at the top or in right at the bottom?
Th e answer is that you only get out of a market after you have seen clear
evidence that the professionals have been selling excessive amounts over
a short period of time. And when that happens, the market’s trend
changes and starts to head south. In this example, it is only when the
trend change has been confi rmed from up to down that you would then
make the decision to get out.
Wait for the Confi rmation before Committing
At market bottoms, you don’t blindly rush in and buy when the market
hits a brand new low just because it feels right. You see, the market
could go even lower. Again you have to wait for a confi rmation that the