Monday, July 19, 2010

Successful Investing and Trading Boils Down to Predictability

Successful investing and trading boils down to predictability. There are many markets that are predictable for short and long periods of time, but it’s difficult to know how long such predictability will last.

Many would say that BP plc (BP)’s continued decline in the weeks and months after the oil spill was predictable, but then again, many were wrong with their immediate and “confident” doomsday predictions, so far, as they predicted the stock would continue sliding into single digits…totally missing the near 40% bounce off the lows in recent days.

The same kind of “confident” predictions were made about Greece and the euro sliding into oblivion and yet both have bounce substantially as it looks like the doomsday predictors were wrong…so far.

We don’t even need to go into these panic/disaster situations, a perfect example of how difficult predictability is Intel Corporation (INTC)’s blow out earnings the other night and how the stock was up big-time afterhours which led overnight futures to surge with many pundits calling for a major technology, not to mention overall stock market, rally to take place…no dice…never happened....INTC opened up huge then gradually down trended all day, their superior earnings seemingly already priced in.

Long story short: “confident” financial market prediction is for suckers.

There are far too many variables floating around for the news, let alone investors and traders, to ever be able to grasp and analyze everything well enough to make any kind of supremely confident predictions.

But that’s exactly why penny stocks should be considered as a predictable market. Let me explain...

This overly simplistic, hugely manipulated, much despised market niche is everything the rest of the financial markets are not: easily predictable.

Unlike forex, ETFs, futures, there are no hugely intelligent people working around the clock, considering every single potential profit angle and using complex algorithms to test out the reliability of various data sets and chart patterns.

Penny Stocks are only traded , promoted, manipulated and invested in by the dumbest, most greedy people in the world.

Sometimes Penny stock companies are either fraudulent or incompetent or both with short and longterm statistics proving that more than 99% of them utterly fail in every conceivable way.

In short, the players and the companies are predictable which is why I specialize in this underappreciated (thankfully) niche and why it’s not just possible/probable for me to earn index and everyone else crushing returns, it’s possible/probable for me to be able to teach you too….this ain’t rocket science folks.

Please do learn from this short video lesson series I’ve put together.

Watch Successful Investing and Trading Boils Down to Predictability



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