Going Sideways
"Markets go up and down and at times, and for what feel like a long time a long time, go sideways."- financial presenter
I think that when most of us think of the market we like to think of it as always going up. But as we know markets do go down such as around 2000 and around 2008. But these are usually shorter periods.
What I find interesting is that for shorter time spans, 1-3 months, markets tend to look like they are going sideways. At times slightly up or slightly down but general pattern is sideways.
So what?
I believe markets are no different than our lives. We also have periods when we feel like we are stuck going sideways. We might feel like our lives are getting a bit better only for the flow to reverse and all of sudden you feel like you hit a wall and starting to go down. It could be a self-induced period when you take a sideways move in the company in order to be considered for a future move up.
The wisdom I want to offer is that when you do hit that small valley, while moving sideways, to think about how to gain more momentum to keep moving up. In technical analysis there is an indicator called MACD- moving average convergence divergence. All it tells you if the pattern is positive or negative and the strength.
So take a moment, when feeling like you are stuck sideways, and determine if the recent past is more positive or negative and ask yourself what you can do to increase the positive momentum.
Today's question is:
"How do you change a sideways move to an upward move?"
"Markets go up and down and at times, and for what feel like a long time a long time, go sideways."- financial presenter
I think that when most of us think of the market we like to think of it as always going up. But as we know markets do go down such as around 2000 and around 2008. But these are usually shorter periods.
What I find interesting is that for shorter time spans, 1-3 months, markets tend to look like they are going sideways. At times slightly up or slightly down but general pattern is sideways.
So what?
I believe markets are no different than our lives. We also have periods when we feel like we are stuck going sideways. We might feel like our lives are getting a bit better only for the flow to reverse and all of sudden you feel like you hit a wall and starting to go down. It could be a self-induced period when you take a sideways move in the company in order to be considered for a future move up.
The wisdom I want to offer is that when you do hit that small valley, while moving sideways, to think about how to gain more momentum to keep moving up. In technical analysis there is an indicator called MACD- moving average convergence divergence. All it tells you if the pattern is positive or negative and the strength.
So take a moment, when feeling like you are stuck sideways, and determine if the recent past is more positive or negative and ask yourself what you can do to increase the positive momentum.
Today's question is:
"How do you change a sideways move to an upward move?"
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