When investing with BrainTrader there will undoubtedly be many challenges that investors will face. Below we will address some likely issues that may be encountered by investors while investing with BTI.
You may lose money when the market goes up.
That's right, there's a possibility that over some days or periods, the stock market will go up, and as a result BrainTrader might lose money. This is because we always attempt to be “in” the market and by doing so we are fully exposed almost every day. Whether Wall Street is saying we're in a bull market or bear market is irrelevant to us. It takes a high level of discipline to make a trade against what the headlines are implying. While we're highly confident in our system, we recognize that a fair percentage of our trades will lose money, as do all trading systems. The key is to never second-guess and to stay committed. The longer you're invested the greater your chances for outperforming.
In a bull market, you may underperform.
During bull markets many timing systems underperform. Fortunately BrainTrader has thus far always outperformed the market in both bull and bear markets, but we recognize this may not always be the case in the future. Whenever an investment underperforms many investors are tempted to abandon their investment all together and move their money into something that has been recently performing well.
You “know” the market is going to move one way, yet BrainTrader invested the other way.
If investing on intuition and gut feelings is your idea of a strategy, then BrainTrader is not for you. Everyday we are faced with making decisions that may defy what the consensus is implying. This is not an easy task, but that is also why we have the ability to greatly outperform the market. Just a few short years ago many were saying that the market couldn't go any lower, and yet it did. Many that invested with BrainTrader also endured a twenty-percent loss in a single month, only to finish the year with over a 90% net return, while the stock market mounted record losses. What would you have done if you lost 20% in one month? If you would pull out then you would have missed out on some very large gains.
Investing in short-term trends requires watching the market every single day.
Perhaps the hardest part of investing in a system like ours is maintaining a long-term focus. When you're trading short-term, it can make it very hard to see beyond one week, one month, or even one year. So quickly we evaluate an investment strategy based on what it has done recently. By investing on both sides of the market, BTI is faced with a potential gain or loss everyday – even when the market is going up. For the average investor this may lead to great anxiety and emotional distress. This is why most fail miserably when attempting to trade their own money. It's a nearly impossible task for most investors to try to separate their emotions from their money. That is why the savvy investors hire advisors. They recognize the value and pay for the service. They do this not only to have a professional making wise investment decisions for them, but to guide them through the times when they would have second guessed their decision, or failed to make a move all together.
Every trade faces uncertainty.
No one has a crystal ball, and no one can predict for certain what tomorrow will bring. The real challenge is enduring the losses and mistakes long enough to reap the rewards. We must acknowledge that there will be losing trades. Some will seem small and insignificant, while others may have a larger impact. In fact, there may be multiple small losing trades that amount to larger losses. Right now they may seem significant, but in hindsight these all become blips on a graph. The real question is will you be able to endure the losses during the difficult times? Our system will virtually guarantee that you will never get in perfectly at the tops and bottoms, and you may have to endure multiple losing trades, or even months, before you are rewarded.
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