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.

Whoa.

$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.

The takeaway?

Don’t put lipstick on a pig.

And, if we want to make money, trade something that historically makes money.