Market Maxims to Profit By
The following is the opening statement to our famous TDT—Thousand Dollar Thursday, July 21st 2016. To find out more about this service, please get for free, JOB FREE INCOME, a special money report on Cash Flowing the Market. Go to wadecook.org. We have some really great numbers for you today, but first, one can’t help but be constantly reminded that we do not operate in a vacuum. Our thoughts and trades are part of a bigger picture and that picture is also part of a bigger picture.
Today, I was watching one of the Financial News channels, as I am wont to do in the AM—as the market opens and often just before it opens. I heard a statement by one of their so-called gurus. It shocked me and I had to rewind to make sure AI got it straight. Here goes: When asked about Facebook (FB) hitting a new all-time high (around $121), and whether he liked the stock or not, he replied, “I hate the stock—because I don’t own it. If I had it, I’d be very happy.” Well, try to make sense out of that. Problems is, people listen to this stuff.
So, I thought I’d share some market advice—some, deserving the moniker: Market Maxims.
1. Fear and Greed: Two emotions that move the market—at least, certain stocks.
2. Supply and Demand: Two factors that control market movements.
3. Buy on Rumor, Sell on Fact (News).
4. Don’t try to catch a falling piano (knife).
5. The herd always under-reacts and over-reacts.
6. All Maxims have exceptions, including this one.
7. We play the market at hand.
We use all of these. They help us make sense out of the market. We use them until they don’t make sense in the short-term. You see, we try to outthink all of these emotions. For example, when a stock will turn up or turn down.
That is also one reason we like Writing Covered Calls so much. It’s a No.R.M. Trade—No Required Movement. The profits for selling a call are what they are. We get paid cash to take on a responsibility to sell a stock at a price we like and within a time-frame we like. It’s the “Asset Producing Income” factor that we like—meaning Cash Flow.
When you need educational help, please consider us. We are pure educators—operating in the the real market, with real, doable trades. We especially appeal to the small investor and the beginner. Go to wadecook.org.