Hirschhorn: Position Yourself for 2010

(Video: Market coach Doug Hirschhorn, PhD, discusses how investors can position themselves for a strong 2010.)

Traders at banks and hedge funds get paid once a year, at the very end. Since most traders on Wall Street did not get paid much, if anything, last year, this years’ profits are even more valuable to them.

So what does that mean for the risk takers out there? It means the closer we get to the end of the year, the less interested traders are in putting on big risk. At this late stage of the game, the risk/reward for them is just not good enough.

What does that mean for the markets?

It means less competition from the big players and lower volume across the board. As a result, there are more quick rallies and dips along the way.

Here’s the good news: If you’re a smaller, short-term trader, there are fantastic opportunities to make some quick profits.

On the other hand, if you’re a medium or longer-term investor, you have a great chance to find excellent entry levels into positions for next year.

The take-away for this week is you should stick around and seek out opportunities in the markets, while the big players sit on the sidelines.

Think better, invest smarter.


Doug Hirschhorn is the chief executive officer of Edge Consulting, a firm specializing in “Peak Performance Coaching.” He holds a Ph.D. in Psychology with a specialization in sport psychology, and has offices in New York and South Florida. His client list includes elite athletes as well as many of the largest banks, hedge funds and financial institutions in the world. Doug's new book, 8 Ways to Great (Putnam, 2009) is currently available on Amazon.com for $19.95.

Have a question for Doug? You can reach him through his Web site, DrDoug.com

Disclaimer: Doug Hirschhorn's expertise is in the psychology of achieving peak performance. He is not a financial advisor and does not make trading or investment recommendations or provide trading or investment advice. He is an expert on the mental game. Although Doug Hirschhorn has a Ph.D. in Psychology with a specialization in sport psychology, he is not a licensed psychologist and does not provide therapeutic, clinical or counseling services.