How to Invest in a Crazy Market Without Driving Yourself Crazy
2018 is Giving a New Meaning to the Word “Crazy” So Buckle Up and Prepare For a Wild Ride
By James Vincent
World Leader in Simplifying Wall Street
© Copyright 2018
All Rights Reserved
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PROLOGUE
If you’re fed up with all of the corruption and criminal activities that occur everyday on Wall Street, then you’ve come to the right place.
What you’re about to read is not intended as a “get rich quick” scheme. It’s meant to give you insight into what goes on behind the scenes on Wall Street that the average investor never sees or imagines.
Our staff has over 108+ years of experience as investment advisors on Wall Street. We also know how the financial industry takes advantage of you (the smaller investor) and everyone else with their shenanigans. And, quite frankly, we’re fed up.
That’s why we created our website chenal.dev and it’s also why we publish special reports like this one.
We don’t just reveal Wall Street’s greed/corruption…we show you how to profit from it.
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“The average man doesn’t wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think.”
~Jesse Livermore~
Legendary Wall Street Trader
Jesse Livermore was one of the greatest traders of all time.
At his peak in 1929, he was worth $100 million, which in today’s dollars equals anywhere from $1.5 to $13 billion. (depending on how you measure wealth). And he did it without ultra-high- speed computers.
He was also famous for making and losing several multi-million-dollar fortunes. Two of those fortunes were made short selling the market crashes in 1907 and 1929.
One of his famous quotes is, “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!”
You can learn a lot from a legendary trader’s experience.
First, notice he said “it never was my thinking…”
In plain English, Jesse was saying, if you want to make big money don’t overthink the market.
To be honest, it’s a lot easier said than done.
The reason is, we count on our emotions to make decisions.
Example:
How many times have you said, “I wish I’d bought (XYZ stock) when it was…” Or, “I should’ve sold (XYZ stock) when it was…”
If you’re like most investors, you have these conversations all the time…and they’re guaranteed to drive you crazy.
That’s precisely why we wrote this special report.
We’re going to show you inside secrets that have worked for over 100 years and they’re based on:
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Simplicity
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Knowing what NOT to pay attention to
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How patience is your best friend
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Knowing the best time to “Buy or Sell”
Simple and Easy to Understand
At Financial$Matter, we’re constantly working to publish financial information that’s easy for you to understand. And when markets get crazy, the last thing you want to do is to read something that’s confusing and hard to digest.
We know that most Wall Street publications (especially special reports) are notorious for being either too technical or just plain confusing. They’re written in a language that even Wall Street veterans have a hard time understanding.
So, with that in mind, (along with the fact that 2018 has already established itself as a crazy year) we want to show you how to keep your head about you when everyone else is losing theirs.
And if you learn how to LISTEN to the markets (not the MEDIA), you’ll profit while most others are losing.
It’s really quite simple.
However, like our friend Jesse Livermore said about most investors, …“He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think.”
So, if you’re not willing to THINK and WORK when it comes to investing in a crazy market, then stop reading this report, now.
Keep in mind we’re not talking about rocket science here. And you’ll be amazed how easy it is once you adjust to the right mindset.
There is a learning curve involved when you invest in a crazy market.
The good news it’s easy to learn.
Stay Away From “White Papers”
One of the best things you can do to avoid going crazy is to stay away from (what we call) the dreaded white papers.
We don’t want to mention names (COUGH! Goldman Sachs, COUGH! Merrill, COUGH! Morgan Stanley Cough! Cough!) but there are certain investment firms (COUGH! J. P. Morgan) who go to great lengths to impress you with their “World Class Research” in the form of a “White Paper.”
Personally, I think it’s a stupid name. But when the boyz create this crap, they promote it with a mystique as if it’s information that no one else has ever thought of before.
The reality is they gather lots of data with charts, graphs, and technical terms (that they know you won’t understand) about something they’re trying to convince you to do.
They give it all to a 23-year-old Ivy League MBA grad and tell him/her to write a conclusion based on what they’re pushing. (They don’t care whether it’s right or wrong. They’re only concerned with promoting a certain idea to you).
Then, the MBA grad uses the data to come up with the conclusion they want you to see.
If the bosses like it, they spend a small fortune publishing it using catch-phrases like, “We have a new white paper on that…”
Meanwhile, the MBA gets rewarded by being invited to lavish parties in the Hamptons with all the hookers, booze and pharmaceutical pure party favors imaginable.
But here’s what’s really laughable about these mysterious “White Papers.”
The financial industry has outside firms monitoring what they publish. The statistics show that nearly 99% of all Wall Street research is Not Read by investors. (Including white papers). In fact, it’s not even read by the investment community.
Let that sink in for a moment.
Be Patient When Stocks Are Falling
“Patience is a virtue as rewarding as a new love in spring. But suddenly forgotten when a man gets caught in his own dream.”
~Richie Furay, Poco~
In a crazy market, one of the biggest mistakes you can make is buying a stock just because hit a new low. It’s like trying to “catch a falling knife.” If you don’t catch it just right, you’ll cut yourself and bleed.
You’re much better off picking a price that YOU want to pay for a certain stock and put in a Good-Till-Cancelled order (GTC) under the current price.
EX: The stock you want to buy has recently fallen 20%…from $50 to $40. You’re chomping at the bit to buy 500 shares because $40 is a new low for it.
Wait!
Put in a buy order for only 250 shares at $36 (10% lower) and a second order for another 250 shares at $32.50 (almost another 10% lower). That would make your average cost $34.25. That’s nearly 15% cheaper than if you bought it at $40…and it’s 31.5% cheaper than when it was $50.
The reason I tell you this is because stocks have a tendency to fall a lot further than you think…especially in a crazy market. (Think of a pendulum swinging from one extreme to another and apply that to your method of investing). If you bought all 500 at $36 and it fell down to $30, you’ll be cursing yourself for being so stupid.
Splitting up your purchases eases your stress when buying.
You must remember this. If you don’t get the stock you want at YOUR price, don’t worry. There are always great buys out there. You just have to look for them.
They Don’t Ring a Bell at the Top…or Bottom
Don’t expect the bought and paid for financial news media to tell you when the markets have peaked or hit bottom.
Instead you need to learn how to see through the majority of their lies so you don’t get killed when everyone is heading for the exits.
The insiders know that the fear and greed factor controls most of your decisions…especially in a crazy market. And they’ll use every trick in the book to trigger both emotions in you.
So, in order to avoid being run over by emotions, you need to determine which one has the most effect on you.
Is it fear? Or greed?
Since most people don’t know the answer, I’ll give you a little test to help you.
Imagine this scenario. If I called you at 3:00 a.m. and said: “Joe, you’ve gotta buy this stock right now because you’ll make over 50% in one day.” Or, if I called you at 3:00 a.m. and said: “Joe, you’ve gotta sell this stock right now or else you’ll lose 50% in one day.”
Which question would wake you up quicker?
You see, most investors think that greed drives Wall Street. And it does up to a certain point. However, fear makes markets mover faster because things tend to fall much faster than they rise. (Think of gravity).
So, in an effort to keep things simple, the best time to buy is when FEAR is at its highest and people are getting slaughtered. (Easier said than done).
Conversely, the best time to SELL is when everyone is making a fortune. (Also, easier said than done).
The Secret to Buying and Selling is…
Controlling your emotions is one of the most important secrets to buying or selling in any market…especially a crazy one.
One of the key ways to keep your emotions in check is to not fall victim to the talking heads crying “This time is different.”
Remember:
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It’s never different.
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The game’s the same. Only the players change.
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Be patient…especially when buying.
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“…and there is no new thing under the sun.” ~Ecclesiastes 1:9~
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EPILOGUE:
At Financial$ Matter we focus on giving you (the individual investor) insight into what goes on behind the curtain in the investment world. And we make it simple and easy to understand via our monthly newsletter Simplifying Wall Street in Plain English.
WE have a combined experience of swimming with the sharks on Wall Street for over 108 years. We’ve been bitten and bled many times and somehow survived.
Quite frankly, we’re fed up with all of the corruption and want to share what we know with as many people as possible.
If you like what you just read please feel free to share it with your friends and family with the following link. (HERE)
They’ll thank YOU later.
