A trader's downfall...

These mental traps can tank your trades... ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

AN OXFORD CLUB PUBLICATION

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View in browser EDITOR'S NOTE Chief Income Strategist Marc Lichtenfeld's new presentation was a year in the making... and looks back at over 10 years of market data. The subject, you ask? How everyday investors could pocket gains as high as 354% overnight by taking advantage of Wall Street's greed. Marc has the full story here. - Nicole Labra, Senior Managing Editor THE SHORTEST WAY TO A RICH LIFE Emotions Can Be a Trader's Downfall Marc Lichtenfeld, Chief Income Strategist, The Oxford Club Have you ever taken a class where it felt like the professor opened up your brain like an empty Tupperware container and filled it with knowledge? That's what happened to me when I took a graduate-level class with one of my mentors in technical analysis, Dr. Hank Pruden. For those of you who are unfamiliar with the term "technical analysis," it refers to analyzing a market or an individual asset using charts. I was expecting to learn about trend lines, bullish and bearish patterns, cycle analysis, etc., in this class. But instead, we dove deep into the psychology of the markets, trying to understand what motivates investors and traders to act the way they do. SPONSORED Stewart Was a Welder in the Family Business... Then He Did ONE Thing... and Ended Up One of the 1,000 Richest People in the World See the Remarkable Step Stewart Took... and How Any American Can Follow the Same Path. Today, there are many institutions that teach behavioral finance, but at the time, it was groundbreaking stuff. One of the most important concepts is that investors' behaviors repeat time and time again. There are no guarantees, of course, and every situation will be a little different, but humans can be fairly predictable. We typically fear the worst just before things get better... and we expect things will always be this good just before they get worse. This course taught me a number of key ideas that I still use nearly three decades later. Here are a few of the most impactful ones. Confirmation Bias Confirmation bias occurs when you focus only on the information that confirms your beliefs. People do this with their political beliefs all the time, and the media plays into it by exclusively giving them information that aligns with their point of view. In the markets, an investor may believe that a stock is a great buy because they see the company's products everywhere... which may cause them to ignore the fact that the stock has been in a downtrend all year. Despite the market signaling that things are not great for the company, the investor buys the stock anyway. Overconfidence I'd bet almost everyone reading this believes they're a better-than-average driver. In college, I had an argument with a friend about what a horrible driver he was. "How many cars have you totaled?" I asked. (The number was three in the previous four years.) "Yeah, but they were all somebody else's fault!" he exclaimed. Enough said. When things are going well in the markets, investors often confuse a bull market with their own genius and think they'll know when to get out. Of course, it doesn't work out that way. SPONSORED Unlock the Ultimate Gold Play: $20 for a 1-Oz. Stake in Gold! Gold has already soared past $2,500 an ounce. But with this 'backdoor' strategy, you can gain exposure to over an ounce for just $20. As the Fed cuts rates, the stage is set for a major gold boom. Don't miss out—click here for urgent details on the #1 gold play of the year! The Herd Effect How many times have you been looking for a place to eat and walked past an empty restaurant to wait at a crowded one? We've seen this time and again in investing, like when people piled into dot-com stocks, crypto, cannabis stocks, and meme stocks because that's what everyone else was doing. Being aware of these concepts can help you question your own decision making and ensure that you're thinking critically about each buy and sell. You can also use stock charts to test your opinion. For example, just last month, Enphase Energy (Nasdaq: ENPH) fell off a cliff, dropping 24% in one day over concerns about the removal of clean-energy tax credits. Keep in mind, this wasn't a sketchy startup with zero sales to its name. Enphase is a viable, well-established company. It made no sense that everyone was bailing on the stock. Let's say you were on Reddit or some other message board reading about Enphase and all the reasons its stock was toast. One look at the stock chart would've told you that "the herd" was likely overreacting... because when the stock stopped falling, it was likely going to reverse quickly. Sure enough, Enphase was up as much as 5.2% the next day and is now up more than 19% in less than a month. Technical analysis is simply the visual representation of investors' emotions. The more aware you are of those emotions and behaviors and how to interpret them, the better a trader and investor you're going to be. Good investing, Marc P.S. My latest research project focuses on a brand-new trading strategy designed to exploit these kinds of "overreactions" in stocks. When we revealed it last week, the feedback from viewers was overwhelming: "awesome find Marc, thank you!!" "Have never seen Marc so animated." "just one word Marc: AMAZING" "I'm excited to get started. Because I've been watching stocks do this move for months." "Marc, as always, a fabulous program, and with you managing it, that gives us great comfort. CONGRATS." Click here to get the details of this strategy! Leave a Comment BUILD AND PROTECT YOUR WEALTH Should Investors Immediately Follow This "Coded" Message From Trump About Stocks? The World's Greatest Company Looks Expensive... but Is It? This Gold Play Has Beaten Gold 10-To-1 for 25 Years - Find Out More. Low Expectations? High Opportunity MORE FROM LIBERTY THROUGH WEALTH The True Meaning of Success What's on Your Bucket List? Why Small Cap Stocks Could Outperform in the Next Market Rally The Mike Tyson Investing Approach JOIN THE CONVERSATION Facebook LinkedIn Email Share SPONSORED Alexander Green was ahead of the curve and added Palantir to his portfolio on September 19, and it's already proving to be one of his sharpest calls this year. Since adding it to the portfolio, the stock is up an astonishing 92% - with no signs of slowing down. Alex believes Palantir could be one of the "Next Magnificent Seven" Stocks. He's comparing it to Apple, Amazon, Nvidia , which he called years before its meteoric rise. If you missed the mag 7's early breakout, you don't want to make the same mistake here. You are receiving this email because you subscribed to Liberty Through Wealth. 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