What will the markets do this week?
Every day, without fail, hundreds of thousands of investors attempt to speculate on how the markets will move. Will they be up? Down?
These speculators combine various factors together in their mind and decide that the market will move a certain direction. Roughly 40% will say it will move down; 40% say up; 20% say sideways (the exact percentages being dependent on world news).
Speculators allow these factors to drive their investment decisions. In essence, they are throwing out logical business reasons for investing in a company, and instead letting other people's opinions and actions dictate their own.
The average market participant behaves this way which makes them slaves to the market; they reactively trade rather than proactively trade. Needless to say, the average investor is not successful.
To become successful, you need to perform better than the average investor. This means thinking for yourself - buy strong companies during fear and sell during greed. The market will always be there, along with the irrationally emotional traders selling stocks at ridiculously low prices and buying at ridiculously high prices.