Why I created my Model
As I mentioned, I've been investing for over 30 years. I've read many so-called expert opinions, reports, technicals, analyst reviews, market conditions, politics, supply chains, demand indicators and the list goes on, and on, and on.
I read the news every day first thing in the morning. I always have. It's important for my work. It's also important for my investments.
Traditional investing is based on speculation and prediction. The number of factors to arrive at a stock market prediction is daunting. I suggest it's impossible. As soon as someone says they make accurate predictions, my confidence in them goes down, a lot.
If you follow the stock market, the overnight prices can take a totally different direction the next morning. If there were such a thing as a person or machine that can make accurate predictions, we would have heard of it by now. Sure, some people have a good track record overall, but they also have many failed predictions, at your expense.
Traditional investing creates many undesirable side effects as well. I frequently endured a downturn beyond my control. This created stress and anxiety. On the other hand, on good days, there was exhilaration, but that was short lived because of the inevitable downturn around the corner and I stressed about that as well. Stress about when to sell and when to buy. Stress that, without a pension, I would be struggling in my later years. Stress that even though I had savings, how long would that last?
2 years ago, I had an epiphany. What if Traditional investing is wrong? I can't predict the future. No one can. Sure, I can speculate on the likelihood of something in the future, but I can be equally wrong. Again, stress.
So, I concluded that Traditional investing is wrong and tugged on that thread. What now?
Well, if you can't predict, I'm left with reacting.
As I researched, there is an outlier trading principle called Momentum Trading. Of course, I'm not the first person to conclude that traditional investing is wrong. You can look Momentum Trading up online. In simple terms, it takes close attention to detect when a stock is rising to the point where it will drop and vice versa. When the stock momentum changes, you make your move. Simple, right? Not really. First of all, you need to be watching very closely, and I mean several times a day. Also, no two stocks follow exactly an identical path, so you need to watch several balls in the air. Then you have an emotional factor of reacting too early or too late. It's not easy.
Over the past 2 years I developed and continually refined Momentum Trading methods, triggers and tools to react to the market at the right time, with the right indicators and take the emotions out of the decisions.
Reaction has its risks, don't get me wrong. But, I am reacting to established facts, not prediction. Let's take the fact that a baseball is batted into the air, is flying at you and is going to hit you in the head. You raise your hand or move your head to protect yourself. This is a good reaction. If you weren't watching or you react too late, well, you suffer an injury. In the stock market, if you weren't watching or you react too late, you will suffer an injury. On the contrary, if I were using prediction, It's unlikely I would have foreseen the ball heading my way before the ball is in the air, and I would have gambled that the odds of it hitting me were very slim. In the stock market, prediction is like saying the ball will, first of all, be hit into the air, then it will travel far enough to approach a crowd, and then it will hit a specific person and that it will hit them in the head. All of this before the batter even steps up to the plate.
My investment strategy and tools allows me to watch, react and take advantage of the stock market going up, and going down. The strategy wins in both directions. Just check out the Evidence section to show you what I mean.
Now that I know my system works, I want to share my success with you.
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