03 Mar Go Where the Money Is
Go Where the Money Is
Mar. 3, 2023
Want to get rich?
Here’s what a lot of experts recommend.
Just move into an apartment building where rich people live.
If you’re constantly in a rich-person environment, eventually you end up rich.
Want to make a lot of money trading?
Only trade instruments that make a lot of money.
Here’s a crazy example.
Using an unbelievably simple system, here’s a Performance Report on Tesla (TSLA) trading $10k of stock each time on a Monthly chart from 2011 to now: https://app.screencast.com/z1aYjPlsiNGMk
As you can see, it makes $171,000 of profit with only about $4k of drawdown. Here are some trades: https://app.screencast.com/JtMK7VnSyORHw
(I think I’m going to do a YouTube video on this system very soon. Warning: you won’t like it. The system is way too simple for anyone to believe it.)
Now, let’s take that same system and trade it on, I don’t know, Coca-Cola. That’s a nice, solid, Warren Buffett-loved stock. How did KO do over the same time period?
It was negative: https://app.screencast.com/lHw4gZvVcyt08. It lost money.
$171k versus nothing? How can that be?
Is the system?
Or is the instrument?
Here’s AAPL: https://app.screencast.com/HD8iSrRkRBADA
Here’s MSFT: https://app.screencast.com/JS8OdrqBzGrU5
Hmm, they both make a nice chunk of hypothetical money.
It seems the system is just fine.
It’s Coca-Cola that’s the problem. (Although it does create some tiny gains over the long-term).
We can’t expect gold in a manure pile.
And we can’t expect big money on small money instruments.
Don’t put lipstick on a pig.
And, if we want to make money, trade something that historically makes money.
Talk to you soon.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.