roshcrazy
Roshni Bhatia
Start with as little as $5,000 and turn into a fortune.
By Mark Crisp September 2003
Sounds too good to be true, doesn't it? It sounds like any other "get rich quick scam."
But you really should be making over 100% per annum in the stock market year in and year out, if you apply some very basic principles. Of course, money managers, stock brokers, financial advisors are going to tell you differently. They are not in the job of looking after your money. there job is to "take your money."
This is how you should be making over 100% per annum in the stock market and the MASSIVE advantage we have over the large institutional funds.
1) Our biggest advantage is our "flexibility". We can flit from trend to trend at a moments notice. The big funds cannot. This point alone should convince you to trade your own money in the stock market. If a stock falls by 10% get out and look elsewhere. Do not waste your time. go looking for the next trend.
2) Trade in lower priced stocks. It's much easier for a $5 stock to gain 300-400% than it is for a $80 to gain 200%. and it will do it in a much faster time frame.
3) Keep to lower cap stocks. These are stocks with much smaller amounts of stock out in the market. Again, these stocks are much easier to shift 300-500% than the larger BLUE CHIP stocks.
4) Do not limit your-self to one industry. If you see as tock you like, buy it. If you are wrong you lose a little. If you are right you make a lot. The big funds limit them-selves to one category, theme, thus tying their hands behind their backs.
5) FOCUS: Notice how the big funds hold 100+ stocks? They may as well simply buy index contracts. You want to narrow your focus down to the top 0.25% of stocks and trade them. Buy big %'s of your portfolio in the VERY best stocks. the ones about to explode right now.
6) Cut your losses early and go looking elsewhere. There are dozens of stocks going on to gain 300-500%+ in less then 6 months. Do not waste your time and money HOPING a losing trade will turn around. Cut your loss and go searching.
7) Play both sides of the market. Most funds are 100% invested during all market cycles. so they do O.K in a bull market only to get slaughtered in a bear market. As a private trader you can be an aggressive bull in a bull market and play it from the short side during those bear markets.
Private traders and small account holders (less than $5 million) have an enormous advantage over the larger funds simply because they can make decisions quickly without affecting the price of a stock. Many of the big funds now have in excess of $500 million (some well into the billions). they are the slow oil tankers of the sea. Taking weeks to get into and out of stock positions. Diversifying into many substandard stocks. They have given up on the idea of making superior returns and gone into the business of managing as much capital as they can. They would rather make 12% on $500 million than 100% on $5 million. Which, from a business stand point actually makes sense. BUT where would you rather have your money invested?
You really can make your fortune in the stock market. It takes time and some effort. But starting at $5,000 and averaging 100% per annum for 10 years (no withdrawals) you will have: $5,120,000. It will take you just under 8 years to make your first million. THEN the power of compounding REALLY kicks in. Unfortunately after $5 million your account size will start to affect your returns. But that's not such a big problem, is it?
I'll see you at the millionaires club meeting one year.
Regards
Mark Crisp
The Stress Free Stock Trader
By Mark Crisp September 2003
Sounds too good to be true, doesn't it? It sounds like any other "get rich quick scam."
But you really should be making over 100% per annum in the stock market year in and year out, if you apply some very basic principles. Of course, money managers, stock brokers, financial advisors are going to tell you differently. They are not in the job of looking after your money. there job is to "take your money."
This is how you should be making over 100% per annum in the stock market and the MASSIVE advantage we have over the large institutional funds.
1) Our biggest advantage is our "flexibility". We can flit from trend to trend at a moments notice. The big funds cannot. This point alone should convince you to trade your own money in the stock market. If a stock falls by 10% get out and look elsewhere. Do not waste your time. go looking for the next trend.
2) Trade in lower priced stocks. It's much easier for a $5 stock to gain 300-400% than it is for a $80 to gain 200%. and it will do it in a much faster time frame.
3) Keep to lower cap stocks. These are stocks with much smaller amounts of stock out in the market. Again, these stocks are much easier to shift 300-500% than the larger BLUE CHIP stocks.
4) Do not limit your-self to one industry. If you see as tock you like, buy it. If you are wrong you lose a little. If you are right you make a lot. The big funds limit them-selves to one category, theme, thus tying their hands behind their backs.
5) FOCUS: Notice how the big funds hold 100+ stocks? They may as well simply buy index contracts. You want to narrow your focus down to the top 0.25% of stocks and trade them. Buy big %'s of your portfolio in the VERY best stocks. the ones about to explode right now.
6) Cut your losses early and go looking elsewhere. There are dozens of stocks going on to gain 300-500%+ in less then 6 months. Do not waste your time and money HOPING a losing trade will turn around. Cut your loss and go searching.
7) Play both sides of the market. Most funds are 100% invested during all market cycles. so they do O.K in a bull market only to get slaughtered in a bear market. As a private trader you can be an aggressive bull in a bull market and play it from the short side during those bear markets.
Private traders and small account holders (less than $5 million) have an enormous advantage over the larger funds simply because they can make decisions quickly without affecting the price of a stock. Many of the big funds now have in excess of $500 million (some well into the billions). they are the slow oil tankers of the sea. Taking weeks to get into and out of stock positions. Diversifying into many substandard stocks. They have given up on the idea of making superior returns and gone into the business of managing as much capital as they can. They would rather make 12% on $500 million than 100% on $5 million. Which, from a business stand point actually makes sense. BUT where would you rather have your money invested?
You really can make your fortune in the stock market. It takes time and some effort. But starting at $5,000 and averaging 100% per annum for 10 years (no withdrawals) you will have: $5,120,000. It will take you just under 8 years to make your first million. THEN the power of compounding REALLY kicks in. Unfortunately after $5 million your account size will start to affect your returns. But that's not such a big problem, is it?
I'll see you at the millionaires club meeting one year.
Regards
Mark Crisp
The Stress Free Stock Trader