Wednesday, June 10, 2009

Investing with the Right Side of Your Brain

When it comes to making investment decisions, why not use your entire brain?

There is data written about stocks, bonds, mutual funds, commodities and ETFs. All of this data such as earnings, dividends, debt-to-equity ratio, PE ratio, cash flow, gross margin, revenues is what is considered by the left side of your brain. It is that part of your brain that organizes, lists, analyses and verbalizes why you should make a particular investment.

Why not invest using the right side of your brain? This is where you apply your visual and intuitive senses. When you invest with the right side of your brain you are applying free association with no sense of time.

This is why I recommend the use of Point-and-Figure (P&F) charts when making investment decisions.

Look at this P&F chart of Crude Oil and ask yourself, does this look like an uptrend or a downtrend?


That's not so hard, is it?

So why did most people on Wall Street not tell you about this P&F chart, that is one of the representations of the stock market, last year?


Or perhaps a better question would be, in spite of what I was told, wouldn't my intuition tell me that the market was going down? Or, why didn't I do something about it, wasn't the downtrend obvious in 2007?

Want to learn more? Visit my website: www.theinvestmentcompass.com

The Investment Compass Guy