Avoiding Hindsight Bias

How Looking Backwards Can Lead to Worse Returns [Trading Tips] [WATCH THE VIDEO >]( How Looking Backwards Can Lead to Worse Returns One of the great ironies of investing is that people know that it’s forward looking. Past performance is no indicator of future returns. Yet investors just can’t seem to help buying into shares of companies on a hot streak. It could happen in any market, any sector, or any stock at a time. [SPONSORED CONTENT] [5G Stock CRUSHES Earnings!!]( Wall Street is loading up on shares of one 5G SuperStock (26 million shares purchased). Why? Because the stock brings in more cash than IBM, Facebook and even Google! Yet it trades for just $3. [Get the scoop on the 5G SuperStock right here.]( But markets, assets, and stocks move in cycles. If you’ve bought what’s already been a runaway winner, chances are you may be buying close to the finish line. This is a fact that can work against you in two ways. Buying a company that’s already had a great run can pose a problem. But avoiding a company that’s down and out can mean missing out on [market-beating returns]( over the next few years as the market fears wane and any company-specific problems go by the wayside. In the 1990’s, tobacco stocks were stuck in a mire. So was Apple, which had to be bailed out by Microsoft before a resurgence that made Apple a bigger company than Microsoft. Today, many companies have failed to match the overall stock market and get to [new all-time highs](, and there plenty of short and long-term opportunities as a result. Understanding the fact that an oversold company is likely to drop, and that a popular company will likely have poor returns, reflects the propensity of traders to extrapolate current trends indefinitely. But markets are cyclical. And getting out at the top of a cycle, and buying near the bottom of a cycle, is [how to generate market-beating returns](, time after time. [WATCH THE VIDEO]( Now introducing the Trading Tips Podcast, bringing you the best unconventional moneymaking strategies available to the individual trader. Stock Picks, Options Trades, Market News and Actionable Commentary. [Now available on Spotify, Itunes and so much more.]( YOU PROBABLY MISSED THIS:   [5G Stock CRUSHES Earnings!!](    [Insider Activity: Harvest Capital Credit Corp (HCAP)](    [Retailers Might Be the Best Trades In The Market Right Now](    [Unusual Options Activity: Freeport McMoRan (FCX)]( Not sure the best way to get started? Follow these simple steps to hit the ground running. › Step #1 - Get These FREE Reports: [Dividend Investing Mini-Course]( | [10 Great Stocks Under $10]( | [7 High Yield Dividend Stocks]( › Step #2 - Join Our Premium Advisories: [The Next Superstock]( | [Triple Digit Returns]( | [Options Cash Cow]( › Step #3 - Connect With The Community: [Trading Tips Official Facebook Group]( Nothing in this email should be considered personalized financial advice. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing The Company, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions. As defined in the United States Securities Act of 1933 Section 27(a), as amended in the Securities Exchange Act of 1934 Section 21(e), statements in this communication which are not purely historical are forward-looking statements and include statements regarding beliefs, plans, intent, predictions or other statements of future tense. Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.  This email was sent to {EMAIL} by editor@tradingtips.com TradingTips.com | 3435 Ocean Park Blvd. Suite 107-334 Santa Monica, CA 90405 [Manage Subscriptions]( | [report SPAM]( Â