Usually when the mass market is following a trend or an
investment theme, those in at the inception have cashed in and already
got out. Getting out before a change in sentiment is key. How do you
judge when to take action against the herd?
Normally this requires three key skills:
1. Foresight
2. Intuition
3. Confidence
Foresight comes from using data and context to have the right information.
Then Information and analysis creates insight. But insight plus intelligence creates foresight. Unless you work at creating foresight, then going against the herd becomes a speculative gamble. A flip of a coin. It relies on getting your timing to perfection.
Intuition comes from combining your foresight with your experience to narrow in upon a change in course with a lower downside risk. Your intuition needs to guide your timing. And your principles and criteria for decision making need to remain highly consistent. This is about patience rather than emotion. It is about confidence rather than reckless courage.
Intuition with confidence leads to action. And action plus process creates new value. Confidence comes from knowing when is the right time to take action. It comes from being consistent again, about your strategy. As if you know that the aggregate total of all of your actions, even when you have misjudged your timing, will yield a valuable, positive outcome.
So acting against the herd can get superior results.
In your career, this will always differentiate you. Set yourself apart from the pack and bring innovation. Make controversial but practical proposals. Be remembered as a thought leader with courage but pragmatic leadership qualities.
When investing, going against the herd can often yield better returns. Buying earnings and dividend yield on dips in the market is one strategy. Getting out of a momentum share or derivative instrument, before the herd, is the core skill. Once the desired return is achieved, profits would be taken. Better to get out before all of a growth trend is complete, than to get caught as a share price drops. This applies especially with Options trading Strategies.
So how do you apply the three key skills to get positive results? Act decisively. Never bemoan lost opportunities. Never fall in love with your assets. Start each new day ready to apply new foresight and not rest on the past. Follow your intuition. Have the confidence that the herd will always be slower to react than you will. Stick with your chosen strategy until you get the aggregate return you have set. But set a limit to stop your losses, if sometimes the charge of the herd is just too strong. Thinking Against The Herd will get better long-term results, particularly with options trading strategies.
Normally this requires three key skills:
1. Foresight
2. Intuition
3. Confidence
Foresight comes from using data and context to have the right information.
Then Information and analysis creates insight. But insight plus intelligence creates foresight. Unless you work at creating foresight, then going against the herd becomes a speculative gamble. A flip of a coin. It relies on getting your timing to perfection.
Intuition comes from combining your foresight with your experience to narrow in upon a change in course with a lower downside risk. Your intuition needs to guide your timing. And your principles and criteria for decision making need to remain highly consistent. This is about patience rather than emotion. It is about confidence rather than reckless courage.
Intuition with confidence leads to action. And action plus process creates new value. Confidence comes from knowing when is the right time to take action. It comes from being consistent again, about your strategy. As if you know that the aggregate total of all of your actions, even when you have misjudged your timing, will yield a valuable, positive outcome.
So acting against the herd can get superior results.
In your career, this will always differentiate you. Set yourself apart from the pack and bring innovation. Make controversial but practical proposals. Be remembered as a thought leader with courage but pragmatic leadership qualities.
When investing, going against the herd can often yield better returns. Buying earnings and dividend yield on dips in the market is one strategy. Getting out of a momentum share or derivative instrument, before the herd, is the core skill. Once the desired return is achieved, profits would be taken. Better to get out before all of a growth trend is complete, than to get caught as a share price drops. This applies especially with Options trading Strategies.
So how do you apply the three key skills to get positive results? Act decisively. Never bemoan lost opportunities. Never fall in love with your assets. Start each new day ready to apply new foresight and not rest on the past. Follow your intuition. Have the confidence that the herd will always be slower to react than you will. Stick with your chosen strategy until you get the aggregate return you have set. But set a limit to stop your losses, if sometimes the charge of the herd is just too strong. Thinking Against The Herd will get better long-term results, particularly with options trading strategies.
