Hey Traders,
I've done a lot of analysis over the years, especially focused on the year I made a 286% return in one "less than part-time" account. And I've discovered what REALLY happens with my best trade.
What I discovered was that I made the largest, fastest, and easiest trades when I would simply…
Buy HIGH and Sell HIGHER
This outperformed any method trying to pick tops and bottoms or buy low sell high methods.
The thing I discovered was in every case I would simply buy high and sell higher.
Once I discovered this secret behind my biggest trades, I made a second discovery...
This discovery came from my search for a way to find stocks that I could buy high and sell higher...
The Analysis Secret
Whenever you look for a stock to trade, there are only two different ways to find a stock: fundamental analysis and technical analysis.
In other words, from a "predicative" view or "reactive" view.
The guys doing fundamental analysis read tons of stuff. They read all the company press releases, stacks piled to the ceiling of Wall Street analysts' reports (what a joke) from every brokerage firm on Wall Street.
They read the company's quarterly earnings reports (what a lie). Ever read one of these? These company-produced quarterly and annual reports are filled with jargon and accounting language that nobody can understand — some of which seems to be totally made up.
Like the "synthetic lease" found in one of Krispy Kreme Donut's quarterly reports.
The fundamental analysts read all this stuff and more, etcetera, etcetera, ad nauseum...
From all these piles of crap they come up with calculations and stock price valuations to determine if a stock's price is overvalued or undervalued, and from there they try to "predict" the stock's price movement.
Fundamental Analysis Is A Total Waste Of Time!
There are two reasons fundamental analysis is a total waste of time.
The first reason is that you cannot rely upon any information you get from the company you are researching or from Wall Street analysts. Before I found success as a trader, I was trained as a stockbroker on Wall Street, so I'm telling you this as an expert –
Company Management's Job Isn't To Tell You The Truth...
It's To Get You To Like The Stock!
Same thing with Wall Street analysts, company management blows smoke up their skirt, and the next thing you know, the analyst's brokerage firm is issuing a "strong buy" recommendation.
Second, Wall Street brokerage firms have already been busted for "conflict of interest" when it comes to recommending stocks. They would issue "buy recommendations" and then talk amongst their peers and friends about what a loser the company was.
Nobody On Wall Street Cares If YOU Make Money, They Only Care If THEY Make Money!
You cannot trust any information you get from a company or from Wall Street!
Since you cannot trust any information from the company or Wall Street analysts, any time you spend on fundamental analysis is a complete and total waste of time.
Besides, all the relevant fundamental information is already built into a stock's price.
And... that leads us away from fundamental analysis into technical analysis. Technical analysis is "reactive." And that's what I like about it.
Understand something: I don't try to predict anything. I simply react to a stock's price movement.
I like to ride trends in a stock's price. If the stock price starts moving up, I react by buying it.
So the first thing I did that dramatically improved my results was to stop trying to find good stocks to trade based on fundamental analysis - reading any research about the company and only use technical analysis to find stocks and decide when to get in when to get out.
When I say technical analysis, I mean using a stocks chart to see a trend...
A trend is a series of higher or lower prices over time.
The trend is what makes people the most money.
When you have a stock moving in the same direction over a period of 2 to 10 days (or longer if it's a runaway winner), you have the highest odds of success.
Trade Well,
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