Don’t be fooled! Many investment companies make you believe that you could learn to invest by reading a book or taking a seminar. They promise pie in the sky returns and make you believe you could be making millions in no time. That is wrong and couldn’t be further from the truth. Your biggest investment is not your investment account but your time. Everyone learns at a different pace but experiencing the market and learning how stocks react through the different economic cycles is what is going to make you successful.
Learning to invest successfully will be the most challenging endeavor you will ever do. You will be investing against the smartest minds in the world that have a virtually unlimited account. Does that mean that you don’t stand a chance? Of course not, in fact you have an edge the billion dollar institutions don’t have. You have the ability to take advantage of the movements that those big institutions make. What could be better than being in a stock that these institutions are buying up with a vengeance. That momentum will send your stock to new highs.
How do you find those plays that are primed to pop? Let Investanomics show you how.
Investanomics was created for those looking for a way to become profitable in the market. Like many in the beginning you may be struggling with the consistency on how to make money in the markets through various economic periods. You tried reading all the books and studied all the systems but still no luck. I have been trading and investing in the markets for over 11 years and have been successful in my strategies. What I found after many years of trading and investing will turn what many believe upside down.
What you first have to realize is before you could consistently make profits in the market you have to understand how the markets actually work. There is more than one way to make money in the markets. In fact one trader could be long and another could be short the same stock at the same time and still both exit their positions profitable. How is that? They both could be investing in different timeframes with different strategies. One could be trading a stock for just a few minutes while the other could be looking to hold it for a few months. The market moves in ways that are determined by all participants and with every trade that you take there is always someone on the other side that is betting that you are wrong.
Why is this important? Because it’s the basic foundation on how the market moves. Everyone has their own special system and belief that causes them to buy and sell. Those movements which may seem random at first actually have instances that may be exploitable to create those profits. The best part is that the market repeats those movements all the time which are what create those consistent profits.
I like to picture the market as a giant ocean with waves that go up and down. Those up movements are the different strategies that outperform the other strategies and those down movements are the strategies that underperform. There are billions of dollars that go in and out of different markets and assets classes everyday that cause those waves. The tricky part is knowing the correct timing, what asset class and which strategy to implement that would have the best ROI at that point. Because of this I believe in order to have a consistent return in the markets you have to be able to take advantage of multiple strategies at different times. By focusing yourself on only one or two strategies could create periods of underperformance as the market creates those waves. Also by investing in different strategies you can diversify your risk by investing in different asset classes and strategies.
I will outline some of my strategies that I use in my trading as well as how I manage my positions. I will post plays that will be tracked here.
The following are some basic concepts of investing strategies that I use in my everyday trading. This section is to serve as a basic guide when understanding the reasoning for certain plays. I’m currently working on several detailed books that will go over my strategies in great detail. These books will be available on this site once released. My goal is to help guide you in learning this great investment game and achieve your investment goals.
Entering a position: I may enter a position using multiple entries and will only enter a position with full risk in certain situations. I usually allow myself 3-5 entries but may make adjustments depending on the setup. What type of entry will be explained on every play I post.
Exiting a position: I may exit positions at multiple prices instead of exiting the entire position at one price. This allows me more flexibility when trying to maximize trades. What type of exit will be explained on every play I post.
I recommend my strategies are done at discount brokers with low commissions in order to maximize returns. Many strategies I use generate multiple entries which may increase commissions. The brokers I recommend are Interactive Brokers, light speed and Ameritrade.
( Small Cap/ Micro Cap Stock )
Many on wall street compare penny stock investing to gambling and say that investing in penny stocks is extremely risky. Why is most of wall street so negative on penny stocks? Because it is so much easier to favor blue chip companies. By actively promoting their blue chip clients they are able to keep them happy and continue to bring in their investment banking and advisory revenue. On the retail brokerage side it easy for Wall Street to create explanations for underperformance. How can you fault a money manager for losing money on Microsoft or Mc Donalds after all right.
Penny stocks offer investors great opportunities to produce above average returns. The trick of course is trying to find the right ones to invest in. I approach penny stocks differently than other investment strategies by analyzing potential plays from a more fundamental approach. Evaluating penny stocks from a technical point of view is very difficult for most plays due to the low trading volume that is associated with most penny stocks. This low volume could cause extreme volatility at times which causes false moves when entering penny stock positions.
This is one of my favorite strategies because it is very simple to implement and is able to take advantage of large shifts in capital as the economy moves through different cycles. Many funds implement this strategy due to the ability to allocate a large amount of capital that could invested without making a material impact to the market as well as the invest to mature over many months and years. This allows funds to slowly move in and out of positions as well as minimizes trading expenses. This type of strategy is suitable for long term investments like 401k’s, IRA’s and pensions.
These trades take advantage of opportunities in the market based off technical analysis. I use basic support and resistance levels tied in with three simple moving averages. I look for setups where stocks may have reached an extreme point which will cause a momentum move in a particular direction. The basic understanding of technical analysis is that the charts represent the emotions of all market participants within a given market. I believe these market participants have certain patterns that occur on a consistent basis in the market due to their beliefs which cause a market to move a certain way. I have found which patterns make the most consistent profits in the markets.