You might have recently heard that the market lost over a trillion dollars in the past few weeks and then recovered some right before losing more, so how are you taking advantage of this gruesome and volatile Wall Street Market?
In the past few weeks we have seen a large number of stocks lose double digits and recover double digits in just 1-2 days which means there is serious money to be made if you play your cards right. Regardless of what dollar amount you play with, you have the ability to make some serious gains in the stock market today. Realizing that the volatility we are experiencing, despite being bad, has a good side, and that is how you will differentiate your winning portfolio.
I wanted to take a moment and share with you the power of differentiating fear from losses. You may have read my past articles about fear driving people’s actions. We have witnessed such fear during the oil spill when BP stock plunged over 65%. Yet nothing was really wrong with the company other than making a mistake. Media coupled with fear is a dangerous combination but one you can use to leverage your winnings.
To celebrate our upcoming eBook: We ALL Play With a Different “O” – Investment Strategies for Everyone, I wanted to take a moment and share with you the power of differentiating fear from losses. You may have read my past articles about fear driving people’s actions. We have witnessed such fear during the oil spill when BP stock plunged over 65%. Yet nothing was really wrong with the company other than making a mistake. Media coupled with fear is a dangerous combination but one you can use to leverage your winnings.
The only weapon you will need to win is to remain fearless and draw your own conclusions rather than seek other people’s recommendations. You will need to start thinking against what the media and others want you to believe, and will have to act without fear but rather confidence that history will repeat itself and that fear is the differentiators from those that win and those who lose. If you are a conservative investor who likes to read reports created by your trading banks about the value of stocks and if you should buy/sell a stock, then you need to stick to what you are comfortable with and stay away from the thinking that I am about to share with you.
If you think of companies whose stock depreciated significantly in the past two weeks, how many of them actually had poor performances and therefore lost as a result or how many were rather doing nothing different but as a by product of the volatile market lost their worth. In order to understand, simply pick a stock and analyze the past two weeks worth of data and understand WHY did the stock depreciate so much, then simply look around you in real life and ask yourself “Are people still using that brand? Do people still bank there? Do people still drink this brand?” Relate that stock’s performance to what you know about its real life performance. EX: If you want to invest in a banking stock, then consider how many new bank locations they are planning to open, how much capital do they have, and where are they heading? These are all questions that can help you realize if the brand itself is hurt or simply dropping in its value due to people’s fear which is driven by the media.
By understanding the nature of the stock, you are able to make an educated decision despite the stock being down and rather buy low and allow time to self correct the market and bring it back up to a reasonable value. Riding at times over 10% worth of profits daily and weekly. The next part is to then get out of the stock and re-invest as it re-adjusts down again riding 2-3 times the exact same range of gains.
Make sure to follow us next month as we reveal specific examples of how we have been able to use this to our advantage to net 27% gains in 3 weeks.
