I Don't Know Everything

I hate to admit, but no, I do not know everything about the market.  In fact, I probably don't know more than 25% of the game at this point.  That percentage however, is higher than more than 99% of the population.  My basic understanding of how the market works, is a rarity.

Think about that for a second.  Isn't that kind of sad?  Many people spend a majority of their lives trying to be financially responsible.  They want to retire with a good money.  They get insurance.  They invest in real estate.  They even invest in the market, or at least someone does for them.

Photo By N. A.

They give up this right to control their destiny, because apparently it's too hard.  That must be it, or why is nobody really doing it successfully?  I say that because you never hear people talk about it socially.  If people really love something, they can't keep it quiet, yet I never hear people discuss stocks with passion (like I do, or want to).  That never happens in regular social circles, unless your in "The Biz".

The reason is you've been taught to hate the stock market.  That right, I said taught.  You probably didn't even realize it happened, but there is a distain for stocks, and investing, and it's very prevalent.    It started with the Great Depression.  People lost a lot of money, for many different reasons, and it took a lot of years before people even wanted stocks.

We had a huge crash, and huge recovery in 2008-2009.  It was what got me to pay attention to the market. I kept reading headlines, about massive losses, so I started to watch the action every single day.  This is that contrary opinion coming through huge for me.  I knew this was my opportunity to get in, and that I had to. I was very correct in doing so.  I was buying stocks at prices that would make you shake your head today, and the whole time the general consensus was the their was much more pain to go.

You have to understand that people were taking massive losses, but I watched the market closely, and bought right into fear.  There were days when the market would lose 8%.  (Buying AAPL at $82, still makes me smile.)   I've watched so many TV shows, video clips, read news articles, listened to so many smart people, tell me just how wrong I was to buy stocks here, but I knew it was right to do so.  People who started picking up stocks into the fear, out-performed extremely.

You have to understand when I recommend a stock, I'm saying I'd buy it at a certain price point.  I'm not suggesting you buy it yourself.  I want no responsibility for what you buy, or how you trade.  I'm not doing the trading.  You are the Captain of your own ship, and you steer at your own peril.  You have to understand what your buying, why it's good, and how long you might hold it for.

Most importantly, I don't know everything.  I'm still learning just like you are.  If you think I'm wrong, call me on it, but make sure you can support your case in a proper manner.  That is how learning happens.  There are different investing styles, but your style has to work, and mine does.  All I can speak to is how I've done it, how I'll continue to do it, and if and when the next bust comes, I'll be out before much damage occurs.  All because I pay attention, and I'm not too proud to cut my losses, and admit when I'm wrong.

Let me tell you about "Bulls, Bears, and Pigs"...