Monday, January 23, 2006

Are you that f#$%&*@ stupid? WalletDoctorBlog...

...this is what my wife practically screamed
at me when she found out that I had lost ten
thousand dollars trading options on that fateful
day back in 1995! I have to tell you WalletDoctorBlog
that I could barely look her in the eye.
I felt like a total heel!

http://www.walletdoctor.com/stockcd.htm

I had finally figured out that low volatility
channels are a great way to trade futures
markets. Less than a year before I watched
all summer as CBOT corn went into a low
volatility trading range at record 20 year low
prices. But I made a major mistake. I didn�t
believe in myself enough and put a mechanical
stop-loss at the bottom of the channel. The
market did what I now know is normal�it
shook me out below the bottom of the channel a
nd knocked me right out of the market.

http://www.walletdoctor.com/stockcd.htm

I then watched the corn market make one of
the largest moves in the past century without
me on board! I would have made over a million.
I was so angry that I just had to get back at the
market. I heard about some option guru who
claimed that futures options are safe and easy
(the firm is now bankrupt from mismanaged
futures option trading). My greed, anger, and
stupidity sucked me right into buying his options
course and I began trading options in the bond
market. It seemed like a sure thing but the
problem was that I didn�t really understand
options like I do today.

http://www.walletdoctor.com/stockcd.htm

When the bond market started to move I
lost ten thousand dollars in the eight minutes
it took my futures brokerage associated person
to unwind me out of the CBOT bond market.
Once it was over I sighed in relief that I had
not lost my home because I didn�t understand
options at the time well enough to know
beforehand that my exposure was so substantial.
Then a cold terror came over me as I realized
that my wife had no idea what I had just done.
Our combined salary at the time was around
$50,000 per year and I was going to have to
tell her that I had lost a fifth of that in one day
trying to get back at the market.

http://www.walletdoctor.com/stockcd.htm

When she came home and found out she could
barely control her tears. I promised her that
I would never put our hard earned assets on
the line again without prior consultation ever
again. I also began an intensely laser focused
study of all aspects of investing that led to my
Ph.D. in finance; the highest credential a person
can earn in the investment field.

http://www.walletdoctor.com/stockcd.htm

In my study of the market I came to see that
manipulative insiders hide the fact that they are
loading up be letting single stock issues fall into
low volatility price channels. I also learned that
when they have their fill they jack up the market
for the single stock issue with a lot of marketing
hype and it all right on the public�s head at
exorbitant prices. Then the stock�s price
crashes and the public gets hosed out of its
savings.

http://www.walletdoctor.com/stockcd.htm

As important, I learned from a friend of mine
who is a cognitive psychologist, Dr. Van
Tharp that people who are not at peace with
the markets always lose! I found out that the
only way for someone angry at the market
like I had been to undo the damage was to
truly forgive the market. At the time, this
was the most bizarre thing I had ever heard
especially since I am no religious type of
guy but it really worked! (Van introduced
me to the best structured meditation series to
learn true forgiveness called A Course in
Miracles and that is why I put new a section
on my discussion board about it.)

http://www.walletdoctor.com/stockcd.htm

When I finally forgave the market all my
fear, greed, and stupidity vanished. I also
no longer had any desire whatsoever to enter
markets that I was simply too undercapitalized
to trade like futures or options. Once my
vision cleared by forgiving the markets I could
see that the vast majority of the public that trade
futures or options lose for a very subtle reason
people just don�t get. People are attracted to
these markets because they are financially
frustrated (they are really angry which is a
form of fear) with their finances.

http://www.walletdoctor.com/stockcd.htm

Their anger and fear attracts them into these
extremely risky markets and the hucksters
that create futures and options courses usher
them in like circus carnies. But here is the
subtle truth that the futures and options
gurus never tell you. To trade futures you
have to be highly capitalized (have a lot of
money) to succeed. If you can go to Vegas
and play a $50,000 bankroll with no fear of
losing it because the loss won�t affect your
finances one iota then you have the basic
qualifications to potentially become a
successful futures trader. But here is the rub!
I just told you that most people who are
attracted to the futures markets are frustrated
because they don�t have much money! I
also just told you that you need a lot of
money to have a reasonable shot of winning
in these markets. This means that the vast
majority of futures traders are doomed to fail.

http://www.walletdoctor.com/stockcd.htm

The same goes for options but the reason is
even more subtle. The option course gurus
usher people into the market by claiming that
there is very little risk in trading options.
They do correctly explain that you can buy
an option and enjoy a great amount of upside
profit potential with very little investment.
What they fail to tell you is that nearly all
options expire worthless. If you plop down
$2,000 to control $50,000 of futures contracts
of stock but then it expires belly up in two
months it seems to me that you just lost $2,000
of your saving!. That same $2,000 could
easily be worth $50,000 or even $200,000 or
more in ten or twenty years if invested in the
right low priced single stocks TAX FREE
through a Roth IRA.

http://www.walletdoctor.com/stockcd.htm

After years of hard work I wired out my
Bulletproof Stock investing strategy that
lets me ride the backs of manipulative
stock market insiders as an unwanted guest
I decided to get back in to the market. My
wife was understandably hesitant when I
told her that I was going to put our nest egg
on the line again trading my innovative way
of looking at the stock market. It took her a
few years to trust that what I do really is so
much lower risk than even buying a mutual
fund. Now she doesn�t even blink when I tell
her that I am buying a few thousand more
shares of stock. She is completely calm
because I have had five straight winning years
while many other people in the public got
tattered by inside corporate executives when
they dumped all of their stock on the public�s
head in 2000 and began the downslide. Some
people will never enter the stock market again
because they got burned so bad and will never
learn that it was because they didn�t have the
special X ray glasses my course gives you.

http://www.walletdoctor.com/stockcd.htm

I decided to share this very personally and
painful part of my development as an investor
with you so that you can truly understand how
deep in the investing trenches I have been and
how low the lows have been for us before we
found the silver (platinum really) lining of
long term single stock investing. I really
have been there and I really have done that
when it comes to all aspects of investing.
The reason that I am successful now as a long-term
single stock investor is that the application of true
forgiveness, experience and intensely focused study
has given me X-ray glasses that allow me to see the
long-term opportunities in the stock market
that you can�t see right now. I see the markets
in a different way because I am not blinded by
fear or rage. The key I want you to get is that
I no longer worry about my investing because
I have forgiven the market; I finally sleep like
a baby at night.

http://www.walletdoctor.com/stockcd.htm

Ironically, a friend e-mailed me last Friday
the he thought that the stock market really
sucked. The market happened be in a hard
downturn. My friend is very wealthy from
years of working in an unrelated industry
but he makes the mistake of listening to
stock tips instead of trusting his own analysis.
His stocks lost a lot of money at the end of
last week. I e-mailed him back and told him
that even thought the DJIA and NASDAQ
indices (you will learn about these in my
course) lost a lot of ground that the stocks
my wife and I owned were completely stable.
There is a very special reason for this I teach
you in my course I call the strong hand effect.

http://www.walletdoctor.com/stockcd.htm

That is why I don�t hype and pump some
get rich quick scheme on you that just to
sell a bunch of courses while I laugh all
the way to the bank and you get the shaft.
You will learn to invest the right way in my
Bulletproof Stock Investing course.
The course is not a bunch of CDs either; it is
a community of like minded investors that
you will enter into. I am not some fancy
guru. I am just a guy that got his butt kicked
severely hard in the market ten years ago,
learned from it, didn�t give up, studied it
way harder than anyone you know, and really
understands how to make money in the stock
market today. I won�t teach you hype or crap
and you will need patience but the potential
for you to get rich over the long haul in the
stock market really is there! Of all of the people
with investing courses out there I really am
one of the very few who can teach you the
right way to invest in the stock market because
I have been to hell and back and most
importantly I am profitable in my own stock
investing. Get off the fence and get my course
or at least get my free CD to hear more about
what I will teach you about stock investing the
right way. I won�t ever tell you what you want
to hear because I will only tell you what I know
is right for you to have a bright financial future.

http://www.walletdoctor.com/stockcd.htm

I am here for you but you have to take the first step,

-Dr. Scott Brown, Ph.D.

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