Regardless of whether you are a stock trader or an investor, you need to control your emotions and look for good entry and exit points. Yes, we have plenty of problems out there, and, no, the market does not go straight up or down. The trading envelop helps you pick “ranges”, not exact tops and bottoms.
If you are in the right stocks and use good entry points, as an investor you can give your stocks a little room. What you don’t want to do is hold until the bottom of the envelop and then sell, or watch 5 or 6 during up days and then buy at the top of the trading range?
Patience and discipline are two of the best traits of a successful investor. Confidence comes over time as the over-bought and over-sold signals work for you. Sell the excitement and buy the fear, especially if you are buying quality companies.
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