At some point in your life (maybe even recently), you’ve likely heard the saying, “trust your gut – it’s always right.”
While that may be true for some things, like your health, it’s the last piece of advice you want to follow when it comes to trading.
In fact, trading by your gut is really no different than trading by emotion – which is the single fastest way to lose your money.
“Attention Kmart shoppers! Women’s blouses are 50% off for the next 15 minutes. Look for the flashing blue light!”
You might remember these famous words from Kmart’s Blue Light Special.
Part of the American lexicon in the ’70s and ’80s, the Blue Light Special was an effective sales tool for Kmart.
It worked like this…
At times throughout the day, Kmart would announce a huge discount on a product only valid for 15 minutes. A flashing blue light above the product attracted a crowd.
This kind of noise drew a crowd and for good reason… opportunity!
And the same thing happens every single day in the markets…
You just need to know when to listen…