Every few days I get just enough emails to make me flip my lid over the kind of ignorance in this joke of an industry.
Not that I’m anything great myself, but over the past decade I have learned some key lessons, rules and psychology which are the sole reason why my trading account is up 175% in the last year. The sole reason why I can create superior instructional trading DVDs and the sole reason why I’m qualified to not only write about the stock market, but actually be worthy of being read/listened to.
Because every time I put a dollar down into a trade/investment, hell, even a dinner/furniture purchase, I know exactly what my expectations are, the probable risks, the probable rewards, my pain threshold and how I will react if things go well or badly.
People losing in this market don’t.
They didn’t realize there was so much risk in “safe mutual funds”, which is why there’s gonna be/ought to be many many lawsuits against the financial firm corporate drones who successfully spouted marketing gibberish to lure people in, both Wall St. and the suckers’ faults, I hope judges fine everyone (lawyers win big).
They didn’t realize that taking advice from an entertainer like Cramer could be dangerous. (Duh?)
That taking advice from/putting money with anybody without a superior track record is dangerous.
Because most people with shitty track records are likely to continue to have shitty track records.
Because past performance IS indicative of future returns.
Forget track records, mutual funds & Cramer, 90% of traders lose, even when the market is doing fine because they trade without rules/by their gut and they don’t consider all the variables before making a trade.
They set themselves up for outright failure by refusing to cut losses quickly, not researching enough to factor in upcoming events that could influence their trade because they just think the market is a crapshot of up and down.
Many TIMalert subscribers and outsiders are amazed at how quickly I get out of trades, saying I “leave subscribers stuck in the stock”
Well bitches, that’s my strategy, get in and out quickly, that’s the key to my success…initial investment thesis aside, if I don’t like the price action, I’m out. That’s what successful traders do. If you don’t understand that, what my strategy is, if you’re too cheap to buy my DVDs, then maybe you should suck up many many many hours and read through all my blog posts.
Hell, I’m amazed when subscribers trade even though they haven’t done any research on my strategy–guys, that’s why I create instructional DVDs!–when they’re out trades for the day “I have to stay in overnight, I’m out of trades”–you friggin morons, always have an exit strategy starting from the very second you enter a trade as it could easily go bad that same day–stuff like that just makes me wanna smack people for their ignorance.
Because trading/the stock market/investing is all about understanding risk/reward BEFORE you put your $ to work, not after.
And FYI you want to minimize risk and maximize reward. Put that in your pipe and smoke it.