I make a living managing client funds for investment in the stock market. I am, what you might call, a quant-based trader. I use fundamentals (only certain fundamentals) to tell me what stocks to consider buying or shorting; but I use technicals (both traditional trend-based, chart-pattern-based and sophisticated time-cycle analysis). All of the tools that I use have been developed and/or designed by me. I believe in these tools and use them religiously for my rules-based approach to trading.
Unfortunately, rules, tools and methodologies are no longer all that is needed to make intelligent trading decisions. Now, perhaps more than at any other time in history, we have to… are literally, forced to… consider the impact of elected (and some not elected) ‘officials’ that have so impacted the free-market of capitalism and impacted it, in many cases, so badly or stupidly.
You may happen to believe that politics and the stock market have no relationship to each other… you would be wrong. You might believe that having a conservative bias (mine) clouds objective analysis… you would be wrong. It is important that you understand that I believe that the best path to substantially growing wealth is through the unfettered, only slightly regulated, totally free and open capitalistic stock market.
You can expect my commentaries to be laced with political, economic, technical, fundamental and, especially, time-cycle-based opinions. I hope to give you an insight that you will not find in any other venue, but more than that, I hope I can help you achieve your goal of increasing your wealth while reducing your exposure to risk in the stock market.
You and I may not always agree, but let us agree to hear each other out. I may not change your mind, nor is that my objective, but I do want you to begin to think multi-dimensionally when it comes to smart, timely and most importantly, profitable, trades and trading strategies.
I am, by education, an engineer with a lifetime of work in mathematically driven computer software systems. About a decade ago, I sold my enterprise software company and having money for the first time in my life… real money… I did what I thought was the smart thing to do: I put my money with a big Wall Street firm to do what I thought they did best… dramatically grow my nest-egg. Instead, they did just the opposite and managed to lose nearly half of it in just 3 short years. I fired them and decided that I couldn’t lose money any faster or worse than they did and began my quest to get educated in the world of stock market investing and, in the process, find (or develop) a tool that would allow me to scan the universe of stocks to find the best ones to buy, when to buy and most importantly, when to sell.
It didn’t take me long to find out that there wasn’t anything, at that time, on the market that would computationally provide the results that I wanted. Being a software systems designer/developer, I began designing my own ‘quant’ system. That effort proved amazingly successful. It didn’t take me long to make back far more than the Wall Street firm had lost, and in the process, placed me on the path of a new and wildly rewarding career as an investor/trader in the stock market.
My stock market tools-based company is www.cycleprophet.com.
It wasn’t too long before higher net worth individuals began coming to me to manage their risk capital. As such, I expanded my financial knowledge-base by becoming a “Registered Investment Advisory” and founding another stock market company called, Sabinal Capital Investments, LLC (www.sabinalcapital.com).
Coming from outside the world of ‘finance’, I have a somewhat unique perspective on making money in the stock market. For instance, so-called financial experts will tell you that to make money in the market, you should concentrate on finding and buying the right stock at the right time. The problem is, no one ever made a dime by buying the right stock at the right time… stay with me here… You only make money by selling the right stock at the right time. Opening a trade makes you nothing… Closing the trade is where you make it or lose it. If you spent more time thinking about selling instead of buying, you would be wealthier today. Try this the next time you get ready to buy a stock… Say to yourself, “The primary reason that I am buying this stock is to sell it!” Then, armed with that attitude, you can avoid getting married to the stock and you are in a better position to either take profits or cut your losses.
I have developed what I call my “10 Essential Rules for Beating the Market”. In fact, I have written a book by almost the same title, “10: The Essential Rules for Beating the Market”. You can pick up a copy on Amazon. It is a quick read, but essential to getting your mind and approach to trading in the right perspective to make real, consequential, money in the stock market.
In the weeks ahead, I will share some of my opinions, charts and strategies. You really MUST sign up for my “Trade of the Week” letter, as it is totally free. In this weekly letter, I will give you my best pick for the week. You won’t believe how much value you get for free. These picks, by the way, are real trades that I will put on, but I will tell you about them first… and the best part, this service is 100% free… no strings attached. You really should NOT pass this up.
I look forward to our discussions. Please keep an open mind… I will try to do the same!
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer