How to Build the Jigsaw Puzzle
You’ve all followed me long enough, and I think most of you understand by now that I have an incredibly considerate / careful approach that likes to take into account the overall market when executing decisions, and although I understand not everyone has / takes the time to make these considerations, I do take the view you’re NOT giving your capital the full respect it deserves if you choose to neglect this important area that I’m going to share with you today.
When we’re looking at the overall market, it makes sense to take on board the information that’s useful, discard what we consider to be the “noise”, and by doing this, we can more often than not arrive at incredibly logical, well thought out conclusions and also identify optimal entries / exits, which ultimately helps us to make more profits.
Most of you are familiar with the charts for the Dow, SPY and Tech by now (you’ve seen me assess them almost to a tee these last 18 months)… and although these are a few of the charts to consider, the reality is, I also consider the charts for many of the sectors within the overall market, and then I will drill down to find individual stocks… this is where the Trend Approach has soooooo many more advantages over the rest of the stock market styles and the “players” who like to take positions in the market and hope for the best, or those using the minute time frames to pinpoint entries.
Let me ask you a few questions.
How many of you launched yourselves into positions between September - December last year, and immediately regretted it?
How many of you have a “buy the dip” game plan, and “averaged down” to such a level you were forced to take a hefty loss?
How many of you would rather be better prepared, and would prefer to be aligned with a Trading Community that are completely on top of the market?
How many of you would like to add another 20% / 30%/ 100% to your performance this year?
What would be the Net Result for you?
If you take an approach that enables you to execute effective decisions… that also gives a clear exit strategy, which ultimately helps you accumulate profit quicker, and is more consistent than any other style, how much of an effect would it have for you over the next 12 months? or the next 5yrs?
I have clients that have turned their capital into millions, and I’ve got other clients that have built up incredible sums… and it’s really no fluke… there are no get rich quick schemes… there are no “Timothy Sykes” penny stocks tricks, and there are no “I’m the best trader in the world” marketing gimmicks.
It’s discipline… It’s structure… It’s Market Understanding…. It’s knowing when to move, and when to stand aside.
Most of you will skim over the numbers above and won’t really consider the financial implications for yourself, and I know most of you will carry on doing the same old things getting the same old results… but the truth is… each and every 1 of these Trade Ideas above were given tremendous care and gentle consideration to the overall market and the underlying sectors therein before presenting the chart to my clients because this then enables only the VERY best set ups… which in turn generates the profits.
Quality over Quantity my friends!
I don’t know if 1500% moves appeal to you or not… but if you are someone that has a bit of patience… understands effective trade management… understands how to maximize profits…. understands when to re-allocate risk…. it can be incredibly rewarding… but it absolutely starts with understanding the complex Jigsaw puzzle that we like to call the stock market.
This week I’ve received around 50 social media messages / emails asking me what you should be doing with this stock or that stock… and although I don’t have the time any more to respond to each email / message, my response is a pretty simple one - it starts with education… education solves the problem right at the source, and if you’re someone that struggles to understand what’s happening, or if you’re someone who suffers from “FOMO” - it might be an idea to work out where your development areas are, and figure out EXACTLY what you need to work on, because if you’re someone who relies on free content (like this blog)… or relies on others to tell you what to trade etc…. you’re not giving your hard earned capital the full respect it deserves. It’s negligent.
I had a conversation with a lovely chap from Texas, USA last week, who was introduced to my work via Social Media, and he asked me a few simple questions… but 1 question stood out above all - it looked something like this.
Sam… I want to make 1-2% per day - can you help me?
Although I understand why he would ask the question (he’s been influenced by the Social Media marketing campaigns from the likes of Tim Sykes / Ricky Guttierez etc) - and whilst most of you know it’s usually not achievable, it truly does sadden me to see genuinely nice individuals be made to think that gaining 1000% - 2000% per annum is the benchmark.. It’s simply not the case.
I suppose where I’m different, is rather than say to the individuals I chat to… yeah… come on board… look at the trade ideas I provide my client group, you’ll make lots of money… you just need to pay me this… I actually decline to work with them… because I know the stock market will NOT reward these bull***t get rich quick schemes, and if you do manage to strike it lucky, it’s usually not from well thought out trade management strategy / risk allocation.
In the end, I talked to the chap, I made it clear what I did, he’s not reached back out again - which is cool… and although I like to “save” these individuals from the pain of taking large losses… sometimes it actually serves someone well to have the bad experiences early on, to realize what works and what doesn’t, and then they can move forward with the understanding of what’s truly achievable and what’s utter garbage.
I don’t want to work with get rich quick individuals - because it doesn’t inspire me… if you have a deep understanding of Options or Leverage, and would like to gain a better understanding of Technical Analysis, that’s different, because Options & Leverage can be INCREDIBLY profitable - this is where the $50k weeks, and the $100k days come in for my clients… but ultimately… it’s not achievable with small account sizes.
I certainly applaud luck (I want everyone to succeed, because that’s the kind of guy I am)… but I’d rather have conversations with individual clients who have made $50k this week (like I did today) - because they have applied incredible decision making / trade management.
If you’re managing the family finances…. If you’re messing with 401k’s… if you’re not getting the kind of consistency you ultimately want… we can have a conversation at the link below.
You all know by now that I allocate time each week to speak to individuals like you… to see if I can help in some way… so if you’re reading this and thinking you’d like to improve results / gain a better understanding of the markets / make more profit.