“Long-term investing is the only way to make profits in the stock market”
“Day-trading is the best way to lose your money”
“Invest like Warren Buffet, he is a value investor, it is the only way to make money”
And my personal favorite, which is the last thing my banker told me before I pulled my 401(k) and decided to manage my investments without him: “I know the market just tanked 8% in the last 24 hours, but this is a long-term plan, you can’t pull your ‘safe’ investments and day-trade. It’s suicide.”
That was January 2008. Nine months later the world witnessed the greatest melting of wealth in human history. If it wasn’t for the hard-working tax-payers of America, Wall Street would be a bomb-hole. Why was my banker so fervent on regurgitating the same thing every other professional in the financial sector has been drilling in our heads since we can remember? If you are interested, this article gives a reduced, to-the-point, resume. The bottom line is, commissions. Bankers make money when you stay in, so obviously they don’t want you using your own brain to make yourself twice, three times as much as they make for you. Then the curtain would be pulled, the gig would be up, and they would be out of work.
Let me ask you this, if day-trading was a sucker’s bet, then I guess all these day-trading software providers and discount brokers would be going out of business, right? TradeKing, SureTrader, ETrade, ThinkorSwim, Questrade, Scottrade, SpeedTrader, Interactive Brokers, CharlesSchwabb, OptionsXpress and the list goes on. I guess they are all shutting down because people are losing to much money managing their own trades. That would be the logical conclusion
Here are some of our past winners. That was just July, and we are just getting started. The staff and I at fundamentalpennystocks.com have been trading our own retirement fund since 2008 pulled the veil from the sham which is institutionally managed investments. The thing is we just got tired of waiting around for these manipulative fund managers to allow us to make a profit, just so that we can take it out slowly during our retirement to avoid paying to many taxes. Again another excuse to keep our money in the big coffers supporting the fraudulent Wall Street pyramid/ponzi.
The only way to make some real money. The kind of money that gets you out of the rat race. The kind of money that works for you and not the other way around is to get in low and cash out as soon as you can take a profit. The higher the better. And in this bull market, higher is better! A nice quote from a classic and must read for all traders, Reminiscences of a Stock Operator:
I made up my mind to be wise and play carefully, conservatively. Everybody knew that the way to do that was to take profits and buy back your stocks on reactions. And that is precisely what I did, or rather what I tried to do…..They say you never grow broke taking profits. No, you don’t. But neither do you grow rich taking a four point profit in a bull market.
The old adage of value investing and the poster-child of buy and hold, Warren Buffet, is a actually an example of what I just explained. You see Mr. Buffet bought in when everything was cheap. Never in human history have we witnessed such creation of wealth and consequently inflation especially since the Reagan era and the deregulation of the credit markets which were locked up since the last depression. All of the current players in the market, and when I say players I mean the true players, the hedge fund guys, those high ranking bankers that manipulate worldwide currencies. The guys like my idol Jim Cramer who admitted on his own website that as a hedge fund manager he manipulated the shorting of stock. Those guys are all trading. They are using all kinds of strategies to make huge fast gains. swing trading, momentum trading, algorithmic trading and our favorite of course, insider trading. While these guys are going in and out of securities, futures, options and whatever other product you can think of, as often as a chain-smoker lights up, you are being told to weather the storm. Tough it out, it’s a long-term investment they say, meanwhile you are barely beating inflation and your kids need braces.
In any case, do what you will. Investing is as much about comfort as it is about making money. Personally I like money more than comfort, which is why I started looking at the OTC, NYSE and NASDAQ for Small-Cap, undervalued securities otherwise known as penny stocks. I love penny stocks. The price movements are phenomenal. Of course as your mama-bear investment “adviser” has told you many times: this market is not for the faint of heart. There are tens of thousands of securities waiting to get your attention and your liquidity to grow. Some are on their way up, some on their way out the door. Some are in obscure industries, others are in our personal favorite pharmaceuticals. Like an unknown Canadian company owned by eight doctors that have discovered a way to do a prostate cancer exam without having to put their index finger where it does not belong. We took our first position in this stock five months ago and we have quadrupled our money by trading this thing regularly. It takes a special kind of person to trade penny stocks, but first and foremost it takes someone who wants to win. Because persistence and doing your research is key. Of course their are plenty of specialists willing to do that research for you for a fee. While you sit back and put in your trade orders.
In conclusion, good luck with your investments, I wish you all the best.
