Still trying to ride those coattails? Don’t do it!

I told you so.

I know – as my mother told me since I was a kid — nobody likes someone who thinks they know it all.

But, I digress, that the more research you do about trading in this market — the better your odds are of making a profit — and avoiding a pullback.

So, if you didn’t heed my pleas over the last few months to get off the fence and start dipping your toes into this market and cost-leveraging into a nice position on some names you’ve done your research on — don’t blame me that you just missed making some nice profits recently.

But I’m really not writing today to rub in your face the fact you just missed out on some nice profits during what has been a great boost in the market as the result of some nice earnings reports over the past week or so from major companies.

Nope.

I’m really writing to those of you who are the eternal losers in the market — constantly trying to dodge doing any actual homework to know when and what to buy in the market — and then trying to ride the coat-tails of others.

How’s that worked out for you in the past?

Don’t write with your answers — I know — not so good.

Because around the time you get wind of the fact that your buddy just made a nice profit on a position and you get off your duff and decide you think you’ll try to get in on that action, the odds are that your buddy — and all the others who have been doing their homework — are about to dump their position.

So while you’ll likely be buying at the stock’s highest price, those who did their due diligence will be dumping it — and likely causing the stock’s value to plummet.

In other words — do your homework.

I still think people should be dipping their toes into the market and cost leveraging into a good position in some good solid companies — but beware of any short squeezes going on in the market.

As I’ve been saying for quite some time — this is a trader’s market we are currently in — not an investor’s market.

That means you should still stick with the solid companies you’ve done your homework on, but always be ready to either buy or sell to either take some profits while they present themselves, or buy even more of a position on a company you know is going to soar after a pullback.

And always heed the usual disclaimer: Don’t base any of your investment decisions on anything you read here — do your own due diligence — or at least enough research to pick the right professional to do it for you.

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