How Do you Know What To Invest In?
This is a checkered subject I realize. Everyone has an idea or gets advice on what to buy and what to sell because frankly most people don't know what to do in the open markets. With the big stocks in the Nasdaq crashing last night including Amazon to 123 is there any wonder why?
First of all this is WHY you must use stops. Anyone not using stops last night after hours doesn't have an account anymore. Probably quite a few.
It brings us back to the question so eloquently put by none other than Bernie Madoff, "is the game rigged"?
The simple answer is, "Yes it is". Most risk takers will lose. It is that simple. Anyone looking for a kings ransom in the shortest amount of time is generally doomed to failure. If you are lucky enough to make a lot of money this way then you should do what you might do if such good luck befell you in a Casino. "Take the money and never come back". It is that simple.
So this begs the question, "What should I invest in"?
This is the criteria that I use and hopefully it will help you.
1) Know the industry you are investing in.
2) Know the company and how it is positioned in the market. Know its competition and know its products. For example if it is say a "Walmart" well because it's model is based on lower products than its competition you know that it is only a matter of time before someone comes along who can do it cheaper and more efficiently. Hence Amazon is poised to put it out of business at some point like Walmart did to Sears, Eatons, K-mart and a host of other mom and pop shops. In other words your time at the top is finite. It will come to an end. I never invested in Walmart for this reason. I did not agree or like their business model because it is a form of robbery. You steal from the poor with slave labor to make a few people rich. Makes no sense. However as the standard of living fell it forced more and more people to shop there. As debt rose people had very little choice.
3) It should be a business that will make the lives of everyone better. By this I mean perhaps Google, Apple, Occulus, and a few other companies on the cutting edge of AI and moving us to a type 1 society.
4) Know all its companies. Does it own porn, casino's, lottery's and things like that. Well if it does then you have to ask yourself if you want to be involved with a mob, gangsters, and thieves. Yes they make money but at what cost to society? Of course the answer is a huge loss of human potential. It comes down to your ethics doesn't it.
5) What products is the company producing "if any". Do the products make people's lives better or worse. Are the products killing people? Say McDonald's for example. A great company but not good for people consuming the products. Another example is financial products. They only enrich a handful of people while indebting far too many who have little to no hope of paying it back.
So hopefully this is a help to you. Useless companies like Twitter, snapchat, facebook and others like this are useless to me. They do nothing but distract people while using their ridiculous public offerings to snap up companies and competition that actually do some good. For example a rich man diversifying his useless cash portfolio might buy up a number of farms if he thinks that commodities are going to take off to the upside. Well fine and dandy but once again it only serves to make one man more wealthy while impoverishing others who do not get the lions share of the profits.
I am not saying money is evil. I am saying the system is not in favor of the little man. So find companies that have a real chance of putting these oligarchs out of business and redistributing capital. Cheers! Stay tuned as I show you how to identify market reversals like a pro.
First of all this is WHY you must use stops. Anyone not using stops last night after hours doesn't have an account anymore. Probably quite a few.
It brings us back to the question so eloquently put by none other than Bernie Madoff, "is the game rigged"?
The simple answer is, "Yes it is". Most risk takers will lose. It is that simple. Anyone looking for a kings ransom in the shortest amount of time is generally doomed to failure. If you are lucky enough to make a lot of money this way then you should do what you might do if such good luck befell you in a Casino. "Take the money and never come back". It is that simple.
So this begs the question, "What should I invest in"?
This is the criteria that I use and hopefully it will help you.
1) Know the industry you are investing in.
2) Know the company and how it is positioned in the market. Know its competition and know its products. For example if it is say a "Walmart" well because it's model is based on lower products than its competition you know that it is only a matter of time before someone comes along who can do it cheaper and more efficiently. Hence Amazon is poised to put it out of business at some point like Walmart did to Sears, Eatons, K-mart and a host of other mom and pop shops. In other words your time at the top is finite. It will come to an end. I never invested in Walmart for this reason. I did not agree or like their business model because it is a form of robbery. You steal from the poor with slave labor to make a few people rich. Makes no sense. However as the standard of living fell it forced more and more people to shop there. As debt rose people had very little choice.
3) It should be a business that will make the lives of everyone better. By this I mean perhaps Google, Apple, Occulus, and a few other companies on the cutting edge of AI and moving us to a type 1 society.
4) Know all its companies. Does it own porn, casino's, lottery's and things like that. Well if it does then you have to ask yourself if you want to be involved with a mob, gangsters, and thieves. Yes they make money but at what cost to society? Of course the answer is a huge loss of human potential. It comes down to your ethics doesn't it.
5) What products is the company producing "if any". Do the products make people's lives better or worse. Are the products killing people? Say McDonald's for example. A great company but not good for people consuming the products. Another example is financial products. They only enrich a handful of people while indebting far too many who have little to no hope of paying it back.
So hopefully this is a help to you. Useless companies like Twitter, snapchat, facebook and others like this are useless to me. They do nothing but distract people while using their ridiculous public offerings to snap up companies and competition that actually do some good. For example a rich man diversifying his useless cash portfolio might buy up a number of farms if he thinks that commodities are going to take off to the upside. Well fine and dandy but once again it only serves to make one man more wealthy while impoverishing others who do not get the lions share of the profits.
I am not saying money is evil. I am saying the system is not in favor of the little man. So find companies that have a real chance of putting these oligarchs out of business and redistributing capital. Cheers! Stay tuned as I show you how to identify market reversals like a pro.
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