During our journey in the financial industry we have met
thousands of investors. Each story is different, but usually falls into a
category. The issues that plague the average retail investor are not as
technical as you may think but are usually psychological. Each Monday we will
have a posting on Wealthy Bucket discussing anonymous investors that we have
helped. We will share their stories to illustrate their trials and tribulations
so that you can endeavor not to run into the same roadblocks. Also, we want you
to understand why Wealthy Bucket has created services to help investors
understand the markets.
One common deficiency with traders is a lack of planning.
Having a trading plan is crucial, actually necessary. One example is a senior
accountant that we work with. He has worked for years and has accumulated considerable
funds in his retirement accounts; however, he throws his money away to hit
homeruns with penny stocks. A large majority of his wealth bucket is sitting in
dead stocks that are illiquid, have no volume, and have gone nowhere for years.
Then, when he puts his money into blue chip stocks, he buys in down trends and
then again his money sits in an investment that isn’t making him money. Then
how does he justify this to himself? At least I get my dividend.
What is the point of sitting in a depreciating asset for a
dividend that has been neutralized by your losses? What if your position never
comes back? On a micro level, he has no entry, exit, and stop loss plan for his
trade. His only plan is to hope to make money. Buy and hold works over time;
buy and hope doesn’t. There needs to be precise planning and management. I do
not mean to overlook the skills necessary to actually determine the micro plan,
but without even considering it you have no chance. Wealthy Bucket calls thislow probability trading. There are no guarantees in the capital markets but you
can put yourself in the highest probable situation. On the Macro level, Mr.
Accountant has no idea how to time the overall markets and each specific sector
within them. The positions he sits in are all in the wrong places; weak sectors,
down trends, stocks in sideways patterns, it’s a mess. This is why Wealthy
Bucket promotes education first. Once you have the education, then build the
skill. Building the skill is practicing what you’ve learnt long enough to
become efficient. But that’s only the first step, then
you need to become a multi asset trader.
You need to understand how to hedge using options to protect your long
term portfolio, selling options for income, short term trading futures/currencies
for income etc. This is what Wealthy Bucket’s MoneyFlow Investment ideas are designed
to accomplish. However it all starts with understanding our multi asset
investment model found in the Bucket Weekly.
Wealthy Bucket is a financial education service. We have
seen countless traders make the same mistakes. We are here to educate you by
showing you how professionals see the market. All you need to do is read and
listen and over time it will click.
General Inquiries
info@wealthybucket.com
Website : www.wealthybucket.com
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