{"id":14336,"date":"2025-01-26T12:00:50","date_gmt":"2025-01-26T12:00:50","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/01\/26\/six-dance-steps-to-remember-for-an-extended-market\/"},"modified":"2025-01-26T12:00:50","modified_gmt":"2025-01-26T12:00:50","slug":"six-dance-steps-to-remember-for-an-extended-market","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/01\/26\/six-dance-steps-to-remember-for-an-extended-market\/","title":{"rendered":"Six Dance Steps to Remember for an Extended Market"},"content":{"rendered":"
\n

\u201cAn investment in Knowledge pays the best interest.\u201d\u00a0\u2014 Benjamin Franklin<\/p>\n

It\u2019s time to revisit a few timeless lessons regarding extended markets.<\/p>\n

As I write this, the last correction of any significance was in 2022. The past two years have been one heck of a dance if you chose to accept an invitation. For those of you attending, I remind you to remember your appropriate dance steps and keep your shoes shiny and polished or you\u2019ll be asked to leave.<\/p>\n

There\u2019s perhaps no better way to achieve these objectives than revisiting the two stock market classics pertaining to frothy markets. I recommend reviewing two books, both entertaining and insightful: <\/p>\n

Charles Kindleberger\u2019s book Manias, Panics and Crashes: A History of Financial Crises<\/em> (7th edition)
\nCharles MacKay\u2019s book Extraordinary Popular Delusions\u00a0and the Madness of Crowds<\/em><\/p>\n

I have some personal observations I like to keep in mind on this topic.<\/p>\n

Major corrections are more a state of mind than a numeric calculation. It\u2019s not all about the numbers.
\nAlan Greenspan called it \u201cirrational exuberance\u201d\u00a0that\u2019s the sister of \u201cFOMO\u201d, which represents investors\u2019 Fear of Missing Out. Smaller profits are better than big losses.
\nWhen my grocery clerk and postal carrier corral me to talk about equities, my radar flashes.
\nSir John Templeton said, \u201cThe four most dangerous words in investing are:\u00a0it\u2019s different this time.\u201d<\/em> When the press is bursting with stories about the \u201cNew New Thing\u201d \u2014 be it cryptocurrency or AI \u2014 my antenna stands tall. Hearing the cliche \u201cit\u2019s different this time\u201d<\/em> conjures up memories of the tech top in 2000, which many of us lived through.
\nA good example is Nvidia (NVDA), on its towering popularity pedestal. I ask myself what might the unknown hazards and hidden future fractures be? Most certainly, the craters will reveal themselves over time. I\u2019m paying attention. Will Nvidia profits truly grow for decades and competitors be kept at bay? As Carlos Slim Helu explained, \u201cwith a good perspective on history, we can have a better understanding of the past and present and thus a clear vision of the future.\u201d<\/em>
\nChange is the DNA and indeed the lifeblood of the markets. New competitors will vault over established leaders, new technology will leapfrog existing technology, and today\u2019s darlings will be passed by. Of the top twenty companies in the S&P 500 in the year 2000, only six remain. This change in leadership is to be expected. Fourteen have fallen out of the elite \u201cTop 20\u201d group. \u201cIt\u2019s not whether you\u2019re right or wrong that\u2019s important, but how much money you make when you\u2019re right and how much you lose when you\u2019re wrong.\u201d<\/em>\u00a0\u2014 George Soros.<\/p>\n

Always remember the timeless advice of Bernard Baruch, \u201cDon\u2019t try to buy at the bottom and sell at the top; it can\u2019t be done except by liars.\u201d<\/em> The bottom line is this. Keep your trading shoes shiny and remember your essential investing dance steps. By doing so, you\u2019ll enjoy a tremendous party without a hangover.<\/p>\n

Trade well; trade with discipline!<\/em><\/p>\n

Gatis Roze<\/strong>, MBA, CMT<\/h2>\n

StockMarketMastery.com<\/strong><\/a><\/p>\n

Author,\u00a0\u201cTensile Trading: The 10 Essential Stages of Stock Market Mastery\u201d<\/strong><\/a>\u00a0(Wiley, 2016)<\/span>
\nDeveloper\u00a0of the\u00a0\u201cStock Market Mastery\u201d ChartPack<\/strong><\/a> for StockCharts members<\/span>
\nPresenter of the best-selling\u00a0\u201cTensile Trading\u201d<\/strong><\/a>\u00a0DVD seminar<\/span>
\nPresenter of the\u00a0\u201cHow to Master Your Asset Allocation Profile DVD\u201d<\/strong><\/a>\u00a0seminar<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cAn investment in Knowledge pays the best interest.\u201d\u00a0\u2014 Benjamin Franklin It\u2019s time to revisit a few timeless lessons regarding extended markets. As I write this, the last correction of any significance was in 2022. The past two years have been one heck of a dance if you chose to accept an invitation. For those of […]<\/p>\n","protected":false},"author":0,"featured_media":14337,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-14336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=14336"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14336\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/14337"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=14336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=14336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=14336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}