It is very difficult to accurately forecast stock market direction; so when you get a chance to take some profit, please take it. You never know what tomorrow will bring. Furthermore, because of unexpected market volatility your profits can become loses in a heartbeat. Watching profits turn into loses only leads to regret.
As you learn more you will become aware that the stock market is a leading indicator – i.e. it forecasts how the economy will be in the near future. If the stock market is a leading indicator, what can you use to forecast where the stock market is heading – i.e. what is a leading indicator for a leading indicator (Double integration of stock market???? Second derivative of stock market??)? The current stock market price consists of what happened yesterday and what is going to happen in the near future. The only events that are not priced into the stock market are those events that are unforeseen. .
Since many of us cannot tell what tomorrow will bring, we are unable to forecast what the market will do tomorrow. The inability to predict tomorrow does not stop market analysts from formulating a forecast. You can use economic data (they are made available by federal agencies and other institutions) and technical analysis to forecast market direction. But you have to understand that if any unforeseen event happens your forecast will be invalid.
As a result, because it is so difficult to forecast the stock market you should take some profit when you are given the chance. You are the only one who can decide how much profit is enough profit.
Become a bandit when you get the opportunity to make off like a bandit. Carpe Diem!! SEIZE THE PROFITS!
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