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We always talk about position while trading stocks and funds but what exactly is a "position"? If you can digest that cash or money market is yet another position then you will know what I mean. Let's say we don't hold any stock just cash on hand thus we are positioned in US Dollar. The currency rate of exchange would affect your wealth (which is what's happening now). The goal for investing is to find a good or undervalued position and put money there then wait for the undervalued position to become an overvalued one and move to the next undervalued position and so forth. You might ask how do I find a good position to put my money in?
Firstly the place should not be crowded as a rule of thumb since good positions don't occur in an overly crowded place. Secondly compare different positions by the trend ratio movement. The RetireSoon Trending Model can help you spot those good opportunities. Let's say you want to find out when to invest in the stock market and when to stay in cash. We are referring to two different positions here: DOW and USD. In this case you can take a peek at the DOW to USD ratio and determine which position is better. By using the trend model type in DIA:UUP as ticker and view the ratio trend. After you have learned this you can apply any combination of positions to find the best to be.