Apply these 10 TRADING and INVESTMENT STRATEGY in 2018 and make tons of money.

January 3, 18

Apply these 10 TRADING and INVESTMENT STRATEGY in 2018 and make tons of money.

Greetings from Hitesh! Thanks a ton for appreciating our post on BUFFETT. Readers have come up with the demand to share some of the TRADING and INVESTMENT Strategy which can help them to Make tons of money in 2018. So, I am taking all of the readers to the MASTER TRADER of the last CENTURY – JESSE LIVEMORE. I have learned my best of the trading skill from HIM. I consider him as my mentor though we have never met personally.

I am sharing 10 of his best strategies with my comment below it. This will make it easy for all of you to understand the QUOTE in right perspective. Just read each of the QUOTES as if you are SIPPING your COFFEE or BEER. Do not be in a HURRY to GULP it like WATER.

1) The stock market is never obvious. It is designed to fool most of the people, most of the time.

This is the REASON – most seasoned investors like BUFFETT always does the REVERSE in the market. If the market goes up – they sell and if the market goes down they buy.  This is SIMPLE STRATEGY but most guys failed to implement the same!!

Since May 2017, I have given calls for challenging time in market and all the experts are telling you to do the TEJI. Just see the 2^nd day only we had a riot like situation in PUNE and MUMBAI SUBURB due to communal fight. This gives the indication of coming time in 2018.

Having EDUCATION or MBA/CA degree is different from making money in STOCK market. That’s why we always tell our clients to be with us for MINIMUM of 3 years.

I have always said – you have a MIND. I am DEVELOPING your MINDSET!! Without MINDSET – you will always FAIL in spite of Intelligence / Degree or other qualities.

2) Play the market only when all factors are in your favor. No person can play the market all the time and win. There are times when you should be completely out of the market, for emotional as well as economic reasons.

As a RULE we do not play in the market in the last week of each of the month. MAUKE PE CHAUKKA rule apply here also. You have to see the market holistically before you put your BET.

When you STAY AWAY for a WEEK – you get the time to look yourself from DISTANCE / to look market from DISTANCE / to enjoy the time with your FAMILY / to enjoy your money the way you think FIT.

Trading should always be done with some EDGE. JESSE calls it – FAVOURABLE FACTORS.

3) Do not use the words “Bullish” or “Bearish.” These words fix a firm market-direction in the mind for an extended period of time. Instead, use “Upward Trend” and “Downward Trend” when asked the direction you think the market is headed. Simply say: “The line of least resistance is either upward or downward at this time.” Remember, don’t fight the tape!

The most often asked question to me is – MARKET KYA LAGTA HEY. People want fixation before they do anything. If they want LOVE, they get MARRIED. They prefer STATIC SITUATIONS to DYNAMIC SITUATIONS.

Your THOUGHTS becomes WORDS and your WORDS become your ACTION. There is a CHAIN effect. So, select proper words before you play in the market.

My personal experiences of meeting with legendary INDIAN investors have always taught me above. They NEVER TALK about NIFTY LEVELS or STOCK Targets. They only say – Market is GOOD or Stock is GOOD.

The NORMAL people fail to comprehend this and they stay away from the market and miss the lifetime moneymaking opportunities.

4) The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor.

This is my favorite quote and I have many times used this in my various posts. He said there are 4 qualities STUPID / MENTALLY LAZY / INFIRIOR EMOTIONAL BALANCE and GET RICH QUICK ADVENTURER.

I have found most people are not stupid but MENTALLY LAZY. They are not ready to spend time in understanding simple investment and trading strategies. They always say – PLEASE DO WHAT EVER YOU THINK FIT or TELL ME WHATEVER I HAVE TO DO? In fact, there are very few who reads my post in totality. They read the CAPTION and judge the post.

Since they are METNALLY LAZY and did not understand the concepts in totality – they have no faith in whatever is being done by their broker or by them. Action without FAITH always leads to PANIC when something unexpected happens or when the results are not in favor.

If person is MENTALLY LAZY and unstable Emotionally – he can be taken for a RIDE by GREED and only GREED. You tell them the money will double in shortest possible time and he will give you tons of money without much thinking!!  This way most of the guys can be proved STUPID.

5) The only thing to do when a person is wrong is to be right, by ceasing to be wrong. Cut your losses quickly, without hesitation. Don’t waste time. When a stock moves below a mental-stop, sell it immediately.

Almost all the legendary and highly successful investors have suggested this time and again. When stock does not move as per your calculations – just book loss and get out. This is the simplest thing to do.

Normal guys do AVERAGING when the stock goes down. This is even more dangerous.  We had talked about CARL ICAHN in the past. He did not sell his loss making stock even when they have gone down by 50% also. But he never added more of those stocks. He added his winning stocks and those stocks gave him 87% return.

6) Emotional control is the most essential factor in playing the market. Never lose control of your emotions when the market moves against you. Don’t get too confident over your wins or too despondent over your losses.

As a school kid, I was studying the reasons of FALL of RAJPUT KINGS. One prominent reason was – they used to CELEBREATE too much on their SAMLL win and they used to get DESPERATE When they to lose small battles. They used to operate from EGO.

Same thing happens with the NORMAL investors. They get happy when the stock moves up by few percentage and they get desperate when the stocks move down by small percentage.

The smart ones see stocks as a MEANS to ACHIEVE their purpose. The do not see STOCK as their purpose. Normal guys see stock as the purpose and they end up making mistake after mistake.

7) All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis.

The KEY WORDS are GREED / FEAR / IGNORANCE and HOPE. If you look this words honestly – you will see that GREED / FEAR / HOPE exists only and only because you have IGNORANCE.

The day you have studied investment idea yourself or you have appointed proper consultant for yourself – you are 100% informed about the investment decision. When you KNOW what you are doing – you have cold-blooded calculation about your expected returns and not HOPE /FEAR or GREED.

The problem comes only and only because of IGNORANCE. At DESTINY MANAGEMENT we spend good deal of time in educating our clients about investment opportunities before they act.

8) Watch the market leaders, the stocks that have led the charge upward in a bull market. That is where the action is and where the money is to be made. As the leaders go, so goes the entire market. If you cannot make money in the leaders, you are not going to make money in the stock market. Watching the leaders keeps your universe of stocks limited, focused, and more easily controlled.

This is the simplest way to spot investment opportunities. Just see which stocks /sectors are moving in current market. Be with them and you are making tons of money. When you follow leaders – you have very small stocks to follow and you can focus more. What an intelligent idea. No doubt Mr. Jesse was the legendary trader of his time.

9) Failure to take advantage of a serendipitous act of good luck in the stock market is often a mistake.

This is one of the major factors, which is being missed by many. Just to give you perspective. In the wake of DEMONETISATION – the gold made Rs.45000 to Rs.65000 per 10 grams. How many of you sold the GOLD or GOLD ORNAMENTS. Just see had you sold you would have got an opportunity to buy back at Rs.27500/-.

You could not have planned DEMONETISATION / you could not have expected that GOLD will touch so and so levels – but when it touched that rate – all you had to do was to SELL.

Had you sold – you could buy at least 1.5 times the GOLD you sold NOW!!

This is missing the SUDDEN LUCK factor.

10) There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. This is because human nature does not change, and it is human emotion; solidly build into human nature, that always gets in the way of human intelligence. Of this I am sure.

When Mr.Modi announced 3 objective of DEMONETISATION – Stop Black Money / Stop Corruption and stop TERRORISM – I was laughing. I had said categorically in my post that India has a long history of MAHATMAS – still INDIANS are the same.

Human Psychology does not change that fast. It takes generations and generations. Just to give you perspective – if you have to choose between LOGIC and BELIEF – you will without fail choose the BELIEF.

In the movie OH MY GOD – the character advised to donate MILK to the people who are HUNGRY instead of pouring over SHIVLING. His arguments were LOGICAL. But has India STOPPED after listening to him?

They removed the BAN on JALIKATTU in TAMIL NADU last year. Did the LOGIC of PETA people prevailed or the BELIEF of the local won the ORDINANCE?

I am writing since 1996. I have large number of followers. They really like my writings. They really appreciate my LOGICS and VISIONS. But they find it difficult to LEAVE their BELIEFS in SAMLL SAVINGS. They know that BANK FDs are BAD in current times as the POST TAX YIELD is very low. But very few are ready to change their BELIEFS.

Long back I had READ a book by WAYNE DYER – “If you believe it, you will see it”. But since they are not ready to change the BELIEFS only – they do not SEE the NEW and BETTER WAYS.

In short, HUMAN EMOTIONS do not change fast and never change with the LOGICS. So, those who can go beyond their EMOTIONS – make tons of money.

What NEXT?

These are 10 CARDINAL PRINICPLES of making tons of money in 2018 and in any situations. I have taken special efforts to write this post for you to deal with 2018.

May you DECIDE to FOLLOW above given 10 rules and achieve your FINANCIAL FREEDOM.

BLESS ME if you find my writings useful to you.

Have a GREAT 2018.

Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.

Live With Passion…Invest With Passion.

HITESH PARIKH,

YOUR PERSONAL DESTINY MANAGER.