Cont..An investor's $204,000 mistake (Part 4)

"Learn from the mistakes of others. You can't live long enough to make them all yourself"

              -Eleanor Roosevelt US diplomat & reformer  (1884 - 1962)

" In the stock market, history repeats itself. This is because human nature rarely changes"

               - William J. O'Neil (Founder of Investor's Business Daily)

        The Challenge: To predict major turning points in the Real Estate Market

So my challenge became this:  'Would it be possible to predict these major trend changes in the real estate market...before they become obvious to all?

Frankly.....I didn't know, but it got me thinking.

While attending college,  I had developed an insatiable interest for learning how to make money in the stock market.  I was fascinated by the strategies used by the professional traders for knowing when to buy and sell for large and consistent profits.

After years of study, I had learned many of the 'secrets' of these market wizards

One secret, however, stood head and shoulders above the others: the most successful
traders would watch certain key market indicators that would tell them- in advance- what direction the stock market was likely to go.

Armed with this market direction information, these skilled Wall Street traders were then able to position their capital for profit while at the same time avoiding most of the risk.

What an incredible advantage for making money in the stock market! and while many of these 'forward-looking' indicators were not always perfect- their batting average was sufficiently high to make these savvy traders very, very wealthy.

I wanted to see if the same formula used in the stock market could be applied in trends in the real estate market. If it was possible, I could profit from the market up-trends....and then sell to avoid the market downtrends.

To be continued...

Resource: 'Timing the Real Estate Market' By: Robert Campbell pages 42-48