Dance Your Way To Riches
There was this famous dancer back in the 50s. He traveled around the world. He would dance in various cities around the world and he would receive and send telegraphs from and to his broker.
He would look at the various data from the stocks that he was watching and during about two years just by reading telegrams he made $2 million. He wrote a book called, “How I Made $2 million in the Stock Market.”
There was another famous trader that traded for a while in the early 20th century. He got his start as a kid gambling in these things called bucket shops. Bucket shops were a place where you could gamble on the price movement of stocks.
You would buy a stock, you would sell a stock. If you made money you got money. If you lost money you’d have to pay money. But the stocks themselves were not connected in any way to the actual stock market. They just used the price movement of stocks to gamble.
This kid was an absolute natural. They called him “The Boy Plunger.” He just had a natural gift of knowing when to get in and when to get out. When he was at the age of junior high school he had amassed a small fortune because he simply had some kind of intuition to make tons of money in the stock market.
Another very famous trader was named Bernard Baruch. He was also connected politically but he was very good at making money in the stock market. At the end of his long career after he had amassed a huge fortune somebody asked him how he made so much money in the stock market. His advice was very simple.
His advice conveys the idea that if you can ignore your emotions, the emotions of greed and fear, and follow some very simple strategies it is very easy to make a lot of money in the stock market. One of the most simplest strategies you can follow is a money management strategy.
This doesn’t matter what type of technique you’re using to choose companies to invest in or to choose stock patterns. The head and shoulders pattern, the high triangle, the inverted triangle, the high flag, it doesn’t matter what type of technical techniques or company research techniques you’re using.
So long as you use these very simple money management strategies, it’s very difficult and not make money in the stock market. The strategies are simple. If you’re up 20%, you sell no matter what. If you’re down 5%, you sell no matter what.
Even if you are wrong half the time, when you’re wrong you’ll lose 5% when you’re right you’ll make 20%. Simply by following this very simple money management strategy it will be very easy to make a lot of money in the stock market.
This is essentially the advice given by Bernard Baruch at the end of his career. He said, “I never bought at the bottom and I always sell too soon.”
The boy plunger, because he was an intuitive trader, he never really learned consciously how to trade. He never really learned any kind of money management strategies and because he was a natural he never had to learn this stuff.
Big Ups Big Downs
This meant that later in his career he made and lost a fortune several times and he ended up shooting himself in the head.
The guy that wrote the book, “How I made $2 Million in the Stock Market,” his technique was very simple. He had this theory that when any stock is going up it bounces around in these boxes. It’ll stay inside of a box and then it’ll break out into a higher box.
Whenever the stock breaks out into a higher box you buy it as it breaks out and they it’ll bounce around in that box until it breaks out into an even higher box. By keeping this box theory visualization in mind all he needed to do was to get the daily data from his broker through telegram.
Simple Data Needed
The stock high, the stock close, the open, the high the close, and the volume. Just based on that data and the number of stocks and he was watching he could create the charts in his mind. He didn’t need any kind of technical analysis software. He didn’t need any kind of charting software.
He just needed to get the basic data for the stocks he was following and that’s all he needed to make $2 million in a couple of years.
Mind Persuasion has plenty of books and courses to teach you how to speak hypnotically and persuasively.