Level = Beginner

Copyright 2003 PD,LLC

December 2003

Do The Opposite

By Richard Philip Cadway
This Newsletter is not a public release - for members only
How can a trader be 180 degrees out of phase?
 
You've probably heard people say, just do the opposite of what you think you should do and you will make money. Most people laugh this idea off and forget about it. But, what if it were true? Why would this be true?
 
First of all, let's talk about the market. It supplies millions of dollars of profit to Merrill Lynch, smith barney, etc. Where do you suppose all those millions of dollars come from? We are talking about hundreds of millions!!! If the big firms took it from each other then some would go out of business, but they don't. So, it must come from somewhere else. My guess is that most of it comes from individual traders such as you and myself.
 
The question then becomes, how can we be so wrong about our trading decisions that we, as a collective group, lose millions of dollars? The market was designed to offer a way for business to gather money by offering the potential of profit in exchange for taking the risk of business failure. That's nice, but the stock market has had crooked dealings since its inception and the public has been cheated over and over again. Just when you think it is safe to invest along comes Enron and others that cheat you out of your money again.
 
The next question then is why would anyone think that the market is designed for the public good? The fact is that the stock market is designed to take the public's money. Did you know that there are massive trading computers that are programmed to work against the emotional actions of the public? Did you know that these computers alone make hundreds of millions of dollars for their brokers firms.
 
So now you know the reason why a trade that looks so good can go so wrong. Imagine if you were the programmer for the trading computer. Wouldn't you have your computer program set up a "great looking trade entry point" to the public to get them to buy in and then do the unexpected to make the public fail, so you can win? Wouldn't you do this randomly to your benefit so that no one can figure out a pattern that would cause you to lose? Wouldn't you spend ton's of money perfecting this computer program? This is why beginners always seem to be on the wrong side of the trade.
 
Doing the opposite then does not seem like such a strange idea. Try it for yourself. The stronger your emotion the more likely a change in direction is coming. Watch a stock price move. When you feel strongly about buying, short sell instead. Do this paper trading and see if it makes you money.
 
After practicing this opposite trading method with positive results you should be able to discover what happens to you emotionally at certain trade setups and develop a better way to react during normal trading that makes you money.


Special Deal check out our Predictions Site for a Special Discount! Click Here

Learning to trade is no simple task due to the skills and education necessary. If you think that you've learned enough and are ready to trade I hate to rain on your parade, but you are trying to take money from the professionals and they don't like to give their money up. How would you do as a Green Bay Packers quarterback after just a few lessons. I know I would get squashed. For some reason people don't think they will get squashed in stock trading, but time and time again people lose their money; that's how the professionals make a living. You know the old saying, " you can lead a horse to the water, but you can't make him drink". Well, I'm leading you to the training courses you need, but only you can drink.
 
There are 2 main reasons why I take the time to publish this newsletter. The first is to share my knowledge with fellow traders because I love profitable trading and the second is to introduce people to Princeton's TradeTutor courses. I put an incredible amount of time and energy into developing the TradeTutor to educate traders in our trading room. At less than $1000. it is a bargain and if you go to Princeton's TradeTutor site you will find a way to save $100.00. click here to check it out
 
Preventing just one serious mistake can easily make the TradeTutor worth many times it's price! And save you from serious Emotional Damage.
We have revised our training programs to be the latest and greatest and for the first time ever are making them available to everyone on a set of CD's. This is the exact same training we offered in our trading room for $2000+. Here is another plus. We are offering a FREE CD that contains the first lesson from each course. How many times have you taken a course because it sounded so good only to discover that it was not as advertised? You forget to send it back and time runs out! Well, that can't happen with Princeton's TradeTutor because you get to experience how great it is as you learn from 4 Free lessons. Order the Free CD Now!
 
 
Click here for details about the Free 4 Lesson CD
 

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THE ARCHIVE - previous newsletters from 2000 to 2002

Princeton's Precision Trading

Jan-2003

Time and Sales

Feb-2003

Discipline

June-2003

Selling Short

October-2003

Do The Opposite

December-2003

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