...Why is the timing so ideal at this moment?
Because when everyone is getting out of a stock, the price is low compared with its actual bonus value. When the invariable good announcement about the stock happensasit always does eventually, if youre patientthere are lots of potential investors who want to buy back in, everyone (as a herd) decides that this same bonus stock is a good buy again, and the price of the stock goes up. You got in at the bottomperfect timingat $10 per share. When it rises back to $30, youve made a small fortune.
However, the key wasnt the actual stock, or the management, or record corporate
profits, or even new poker bonus. The key was timingknowing at what point to
pull the bonus trigger (buying or selling). Often, fluctuations in the price
of a stock merely reflect public perception. While the casino stock was a great
value at $10 (when the perception was negative), it was undervaluedit had nowhere
to go but up. But the same stock with the same story and earnings performance
is not a buy at $28 (when the perception is positive). Why? Because most of the
value is already bonus gone. It has had its run. The same stock is an automatic
sell at $48. Why? Because all the value is gone. It has nowhere to go but down.
Do you now understand the value of timing? Those few points (up or down) will determine whether you earn a profit or a loss on your investment. Were talking about the same company, with the same earnings and management. Yet because of timing and the price of the casino stock at the moment of purchase, some investors will profit and some will get slaughtered over the next six bonus months. It works exactly the same way in sportsexcept you need to substitute the point spread for the stock price.
RULE 2:
THE PUBLIC DOESNT UNDERSTAND THE PSYCHOLOGY OF
GAMBLINGA HUGE MISTAKE.
Do you know the big difference between amateur gamblers who lose their online
bonus shirts betting on sports and the best professional gamblers in the world?
No, the answer is not that the professional gambler wins more often (although
thats
certainly true). It actually all comes down to how the professional prepares
for and reacts to losing. All gamblers lose sometimes. So do all bonus stock
investors. The best professional handicappers and gamblers hit 55 to 60 percent
winners. Thats all the edge you need to grind out a healthy profit. Enough profit
to make you wealthy and famous. But that means that the best gamblers in the
world bonus lose four (or more) out of every ten bets Wall Street works the same
way. And just like in sports wagering, most investors have no bonus understanding
of market psychology. They dont have the mental strength or stability to handle
a casino losing streak. They quit at the exact moment when they should be going all
in (as they say in poker). They sell when they should be buying with both fists.
They buy when they should be selling. They double up on stone-cold losers. They
tread lightly on obvious high-percentage winners.
Im a professional gambler. I dont get crazy over a bad night or a bad week or a sub-par month. Thats because Ive been there beforemany times. Thats the key to bonus winning. Understand that every gambler (and investor) picks losers. Understand the big picture. What happens in any one day, or on any one stock, is insignificant. What matters is winning consistently over the long haul.
Ive met a lot of gamblers over the years who thought they could become professionals like me. They thought they could become rich and famous. They were wrong. The difference in each and every casino case was that they couldnt handle the losing streaks. The same holds true on Wall Street. Find me a legendary stock picker and bonus Ill show you a market pro who has had to overcome huge losing streaks on numerous occasions the kind of streaks that drive mere mortals to drink, or at least to seek a new line of employment. Even a superhuman like Tiger Woods understands losing. After winning seven of eleven majors from August 1999 to June 2002, Woods is now 0 for 7 in majors as I write this book.
