Winning

Winning

Wednesday, July 16, 2014

How To Make 30% Monthly With This Site

Every day this site will be updated with three things..the expected direction of the QQQ Nasdaq composite in the short term over the next three days, the expected direction of the QQQ Nasdaq composite in the long term over the next several weeks, and a highlighted stock that I feel will either bounce or surge in the direction of the market. The time frame for this stock will be either in 2-3 weeks time, or in 2-3 days time. Over time, I have been averaging gains about 30% a month. Not too significant you say? Grab a calculator and figure out how quickly $5,000 grows earning 30% 12 times a year with compound interest.


Start: $5,000 (@30% monthly, compounding)

Month One:         $6500
Month Two:         $8450
Month Three        $10985 (first doubling)
Month Four:         $14280
Month Five:         $18564
Month Six:           $24133 (second doubling)
Month Seven:      $31372
Month Eight:        $40783
Month Nine:        $53018 (third doubling)
Month Ten:          $68923
Month Eleven      :$89600
Month Twelve:     $116480(fourth doubling)
Month Thirteen:   $151424
Month Fourteen: $196851
Month Fifteen:    $255906
Month Sixteen:    $332677
Month Seventeen: $432480
Month Eighteen:   $562224 (you are making 132,000 a month at this point)
Month Nineteen:  $730891
Month Twenty:     $950158 (now you are making 219,000 a month)
Month Twenty-one:    $1,235,205
Month Twenty-two:    $1,605,766
Month Twenty-three:  $2,087,495
Month Twenty-four:    $2,713,743

There is one of the most powerful forces in the Universe: The power of compounding interest. If you have the discipline, and can put your earnings back in every month, with 30% monthly compounding you can go from 5 grand to almost three million in two years.

I am a Contrarian Trader

How do I do this? I would refer you to the video here for an in detail explanation. In short, due to evolutionary reasons, humans follow the crowd. In cave man days, when you observed a group of everyone running by you fast it would have been a good idea to join in and run with them instead of standing there looking around for the reason they were all running. Because if you did, suddenly the saber tooth tiger that was chasing them would instead pounce on you and you would be lunch. So we evolved to follow the crowd. This also carries over to trading. When the stock market surges, people pile on not thinking and it surges more (this is why the housing market went crazy in 2004-2005 and why the stock market bubbled in 1999) and when the market drops everyone starts panic selling (this is what happened in 2000 and 2008).
Now, when the public surges one way or another in the stock market is is emotional buying and selling mostly without rational thought, its panic and greed. 
This causes over reactions and under reactions. Bridges or gaps of oversight that are not rationally looked at until the crowd settles down and logically looks at things until the next day or week. Only when they are able to look at what they did/what happened the next day or so with a logical frame of mind can they truly evaluate the market at its current point to tell if something has a true overvaluation or undervaluation.
As a contrarian trader I know this about crowd mentality and I sit there and wait until the crowd surges one way or another like panicked lemmings, and I then in real time evaluate the situation that same day. If I feel like the crowd has made an irrational situation that leave a security in a state of over/under valuation, I sweep in and take the opposite position in that security. The next day when that security snaps back to its true valuation when the crowd takes a level headed look at it, there can be a sudden profit for me of anywhere from 7%-40%. Now for a Q and A session.

Q: How do I know you arent just some doofus making stock picks like everyone else on the internet?
A: You don't. Thats why you should see for yourself before you make a decision by following me for a couple of weeks in the Sandbox. Thats where I put up my trades in the order window, and you can then see the results there as well. Get to know me. Follow me for a while every day and feel comfortable with my trading before you start trading my picks. I am a strong proponent of 'show me'. 
Q: Does the crowd really surge one way or another in panics?
A: Yes. To varying degrees. Thats why when there is a crash happening the Nadsaq sets automatic breaks: When the stock market starts to panic crash and it drops 450 points the Nasdaq halts trading for an hour to allow everyone to get thier heads together. If when they turn the machines back on and people start to panic and sell again and it drops another 300 points, the Nasdaq will close down for the day and reopen in the morning, again to let traders cool off. When a stock gets hot, people will start to pile on it, and the more volume and attention it gets, even more people pile on it eventually to the point where people are making an error because it is overbought, or priced past the point where the stocks value truly lies via its fundamentals. 
Q: So why doesn't that panic or greed selling affect you? How are you able to react to it and take the opposite position for big profits?
A: I can pull anyone out of the trading floor, calm them down and explain what I do and this entire system to them and tell them what the crowd does and what to look for. Then he will sit right there with me and we will both wait and be able to identify when the crowd is acting irrationally and we would then be able to logically take the opposite position. If you are educated about this and know what to look for and are actively looking for the crowd to surge one way or another, you can with an even head act on it.
If on the other hand you are a trader and are unaware of this, you will just sit on the floor waiting for something to happen. Suddenly when you see the crowd surging doing something, it will be very hard not to join in. Remember the end of the 1983 Dan Akroyd/Eddie Murphy movie "Trading Places" where they cornered the Orange Juice market? Buying/selling contrarian is kind of like that.

                                              Contrarian Scene at the End of "Trading Places"

Q: So how is this done exactly?
A: Good that you asked...here is a video below describing how to do it.


Well, that's all for now, and good trading. 
Mark

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