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Financial Market Late Comers

Probably you have already heard of financial market late comers.  Or have you ever been labelled a late comer in the financial
markets?  If one has been a late comer without knowing it then this article is for one.  My goal is to share with market players how they can avoid being financial markets late comers.

Step One To Avoid Being A Financial Market Late Comer

The first thing to do is to avoid buying and holding for medium to long term purposes during the last year of an American presidential term if the market has been bullish in the past three years.

One can compare the financial markets to a friendly and generous host that has been sending out invitation cards to many friends, but to benefit from that one ought to be at the venue before a certain time.
Indeed one could not afford to be a late comer in those circumstances.

Step Two To Avoid Being A Financial Market Late Comer

Learn to count Elliott waves and try to be a very cautious buy and hold investor for medium to long term purposes. 

Really, what is the point of taking a high risk when the probability of a market correction is ticking high?  Is it worthy?

A financial market trend is subdivided into five waves.    Though many are quick to dismiss the Elliott wave analysis as a BS, it can help one to avoid being a financial market late comer.

Step Three To Avoid Being A Financial Market Late Comer

Never buy and hold during the 5th Elliott wave or after the financial markets become overbought.  Most fundamental investors often get caught up in a high risk market timing just because the financials were still sound.  

The problem here is just a wrong market timing or the lack of knowledge of the anatomy of a bullish trend.   That lacking can cause one to become a financial market late comer.

Step Four To Avoid Being A Financial Market Late Comer

The four step is about using the Elliott wave structures to determine where the market is and headed.  Believe it or not, Elliott wave traders and investors have an edge when it comes to reading the price-action.  

Indeed, professional market players do rely on the Elliott wave principle to navigate the markets.  Please do the same to avoid being a financial market late comer.

Step Five To Avoid Being A Financial Market Late Comer

Use the financial market cycles.  A market, sector or financial instrument can have its own distinctive cycle apart from the economic cycles.  It is prudent to use them to avoid being fried like a KFC chicken.
Jokes put aside, that is one of the mistakes that causes investment roller coaster.

Step Six To Avoid Being A Financial Market Late Comer

The sixth step is to begin to know when the accumulation and distribution do take place because they help to buy or sell at the early stage after the initial breakout.

Before a bullish trend, there is an accumulation.  On the other hand, a distribution precedes a bearish trend.

In both instances, the influential financial markets dealers start to build a stake in many financial instruments.  Those trading or investing activities cause trading volume surges before the price-action reveals a healthy first Elliott wave.

By mastering the accumulation and distribution trading activities of the leading market players, one will greatly improve the market timing and avoid being a financial market late comer.

Step Seven To Avoid Being A Financial Market Late Comer

The step seven is to know when is the best time to begin to build stakes in the financial markets.  That is the time when the financial markets have built a strong bullish foundation.  

That foundation is in place after a healthy second Elliott wave that has not cancelled the initial first wave.

Usually, a strong bullish foundation comes after a bearish cycle.  In this case, a cycle is the trend plus the full correction phase.
Therefore, the best time to begin to build a stake as a financial market investor is at the start of the third Elliott.  Indeed, most intelligent greedy investor only take part in the third wave.  Call them smart third Elliott wave traders.  It goes without saying that one can avoid being a financial market late comer if one is a specialist third Elliott wave trader.

Conclusion

The seven steps to avoid being a financial market late comer ought to be combined with the fundamental analysis.

Those who use the fundamental analysis without taking into consideration the seven steps will live a roller coaster financial market late comer lifestyle.

Also Elliott wave traders who adhere to those steps will improve their decisions with a valid fundamental analysis.  It does not matter what type of market player one is, one ought to learn to avoid being a financial market late comer.  The common denominator of all factors that cause one to become a financial market late comer is the wrong market timing.  One can dramatically improve the market timing when one finally masters the Elliott principle and its hidden rules.

Alright, I already feel lighter after sharing those seven steps to avoid being a financial market late comer.  I hope those tips will help one to avoid being a financial market late comer.  If that is your case, please share and bookmark this article today.  Also, remember to say few good words about us in various trading and investing forums.

I wish you the very best in your financial markets dealings.

Happy Investing To All.

This article is written by G Beaulieu
Founder Of Stochastic-macd.