How to make money from the markets – Introduction

There’s a huge number of myths out there about investing and trading that are quite simply – a load of rubbish.

Over the next few months, I’m going to show you how to make money from ANY market.

The first question you have to answer is:

  1. What do you want from the markets?

 

This will be personable to you – It could be anything!

This is what I want from the market:

  • When I decide to trade the market, I want to beat the markets return!
  • I aim for 25%+ and from that I know that over 3 years+ I will beat the market

so from that base I then set about formulating a plan of action to try to obtain 25% + return from the market annually

As I’m a very lazy person, naturally I wanted the easiest route to achieving this goal.

There is no Holy Grail and by that I mean some unknown, unknown that no-ones discovered yet that will let you be right 100% of the time.

Take a breath, think about it – there is not one system, method or technique that works 100% of the time.

  • That then means that you have got to take positions based on faith, trust and gambling

Yep that’s right, its a gamble!!!!!!!!!!!!!!!!!

So if it’s a gamble, then don’t you think it makes sense to remove as much risk to the gamble, guess, as is possible?  Of course it does.

That is what I’m going to show you in this series of posts

I’m going to show you how to AIM for that 25%+ annual returns from a variety of methods

There’s lots of methods to trade by – your next important question you’ll need to answer for yourself is

  • Are you willing to trade boringly and EXACTLY the same time after time

If your answer to this question is NO – then trading is probably NOT for you – you cannot start mixing and matching and varying what you do

For example I trade ONLY when the market is in a perfect set-up formation that I have devised (and i will show you this) – if the conditions aren’t there, then I won’t be putting money at risk.

So over the coming months I will show you how to make money from the markets, how to identify potential trades and how to think properly.

This series of posts will be based at the complete novice level, but it’s applicable to professional traders too – the whole aim of trading/Investing is to make money from the money you put at risk.

Now there’s only 2 ways to do that:

  1. Invest and then leave (Buying and Holding) or
  2. Trading

I like to be as much in control as I can of my money so I sit in the traders camp, as I’m often sat in cash waiting to take a position and then my positions tend to last days-weeks or months not years.

You’re going to need to understand and use basic mathematical concepts, because I’m afraid it is all about the maths whether you turn a profit or not!

Let’s say you make the 25% per year goal, if you start with £3,000 then over 25 years that will grow to £794K!

That’s a nice payback for extracting money from the markets.

Now if you’re a buy and hold investor then you will be fully exposed to market forces and you’re likely to experience some pretty hefty corrections along the way over the years – you are highly unlikely to hit the 25%+ goal per annum using this method – you might do it a few years out of 10, but not 10/10 years.

Make sure your signed up to receive posts when I make them, so you don’t miss the next one – this will look at the market as a beast in it’s simplest form.

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4 Year – Next repeat?

This cycle nearly always arrives in OCTOBER.

The next hit is October 2018

I did mention this when it last hit in October 2014 – some 4 years aggggooooooooooooooooooooooooooo

With the exception of 1994 & 2002 – just look at how this cycle has arrived and the markets bounced many %

4yr cycle

the 2 years in question – 1994 & 2002 – were not void they just took a few more months to get going – they still eventually worked.

Lets PRETEND that 1994 and 2002 failed – so out of 9 trade potentials since 1982, 2 failed = 78% win rate – which is pretty damn good (In fact when you take this cycle back centuries the win rate is 90+%!!!!!!!!!!!!!!!!!!!!!!!!!!!

Make a note of it in your diaries – look back in 2019 to what happened in 2018 and specifically around October time.