Well, that went about as expected.
Remember, I can only tell you what is likely to happen in the markets and how to profit from it – the rest is up to you. Of course, sometimes our "profits" are simply not losing money because we choose not to play a game that's hard to win. That's a very hard concept for investors to grasp – the art of standing still at the sidelines but if you have 100% of your money and the market drops 80%, then you can buy 125% of the stock you could have afforded when the market was at 100%. Yep, do the math!
So, not only does PATIENCE allow us to buy our favorite stocks at a discount but it allows us to buy more of them than we could have bought when they were at full price so if, for example, I wanted to buy AAPL at $140 last week and I had $14,000 to allocate towards but instead I decided to wait for a pullback of at least 20% and then it hit $112 and I pulled the trigger and bought 125 shares for the same $14,000. Not only that but now, if AAPL rebounds and hits my target of +20% down the road at $168, now I have $21,000 for a 50% profit on my $14,000 whereas, had we bought 100 share for $14,000, we would now have $16,800 for a 20% profit.
Our profit is 150% HIGHER when we are PATIENT!
That's without usuing options tricks or even having perfect timing, that is simply the difference between learning to be patient and not. That doesn't just go for stock, of course, that goes for every options contract we sell or write – the difference between jumping in an chasing entries or patiently waiting for the right entry can DRASTICALLY affect your portfolio's performance. Try it!
You simply have to learn to acccept that stocks (and options) tend to move about in a channel and, if something is high in the channel – you should simply not buy it or, if you own it – then sell it. If something is low in the channel, THAT is when…
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