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How to Consistently Make $ in the Market By William Cate
http://home.earthlink.net/~beowulfinvestments/williamcateventurec
apitalampequityfinanceconsultant/
The Stock Market is rigged. Less than two percent of the
speculators in the OTC, OTCBB and Nasdaq Small Cap markets win
each year. Less than one percent consistently make money in
speculative stocks. The purpose of the Market is to redistribute
wealth from the many to the few. You can be among the one
percent of consistent winners, if you adopt a professional
approach to market speculation.
The brokers have the edge against the public investors. They
make money supplying their services, playing the Market against
their clients and knowing the real rules of the Stock Market
Game. The promoters manipulate the Market to dump their shares
on the unsuspecting public investors. The public buys on emotion
and nearly a complete lack of understanding on how to make money
playing risky stocks. The regulators have a poor understanding
of the Market and are very reluctant to enforce the laws that
are intended to protect the public investors. Anyone who buys
stock on a hot tip, a taut sheet recommendation, their broker's
advice, a market guru's suggestion, etc are almost certain
losers in the Stock Market Game.
The Popular Speculation Strategies Don't Work
Fundamental Analysis: A public company that is making money and
has reasonable prospects of making more money isn't necessarily
a good stock play. Solid fundamentals are vital for the survival
of the company. However, a public company's share price is
determined by subjective emotional factors. Stocks are sold
appealing to the buyer's expectation that the share price will
quickly rise. The speculators are buying motivated by greed. A
Fundamentalist speculating in a stock is betting that other
Fundamentalists will find and buy the stock after they have
taken their position in the company. This is usually a very bad
bet. The insiders are usually dumping their shares and
depressing the share price in the process. What appear to be
solid financial figures are often less than solid. Consider
Enron as a good example of cooking the books. Or consider Bre-X
as a good example of cooking the technical data. In fact, a
Fundamentalist is actually someone with an emotional attachment
to numbers. They are losers as Market Speculators.
Technical Analysis: It's financial astrology. There are cycles
in the Market. Bears follow Bulls. Industries become popular
with investors and then fade into disinterest, etc. However, the
reasons for Market Cycles are subjective perceptions by Society.
These perceptions change rapidly and are potentially infinite in
numbers. You can't devise a mathematical formula that can
account for an infinite number of subjective variations. It
would be easier to predict the next snowflake than the next move
of the Market. There are an infinite variety of potential
crystal forms for the next snowflake. No mathematician claims
they can predict the next one. If it weren't for the fact that
investors are willing to pay for pseudo-science predictions,
nobody would serious claim they can predict the next market
cycle.
Two Professional Speculation Strategies that Consistently Work
Sell OTCBB Stocks Short: Only one OTCBB company in fifty
survives five years. Short sellers always have the odds in their
favor. Let's assume you randomly sell short 100 OTCBB stocks at
a cost of $100.00. Within five years, you have made $98.00. Your
profit is tax-free. The two OTCBB stocks that are still trading
and likely to be trading well below the price at which you sold
them short. If they are trading above your one dollar average
short cost, your profit is less than $98.00. If you use all the
professional short selling rules, you usually see the OTCBB
companies you short fail within three years and you never have
to deal with an OTCBB survivor.
The 3/11 Strategy: There are several ways that professionals
play this speculative market game. It's based upon the principle
that your group owns all the shares that can be sold into the
Market and you or the Company will promote the stock to ensure
demand for the shares that you own. This strategy requires that
you join a group of profit oriented professionals, but like
short selling, it always works.
If you're an investor who wants to consistently profit in the
Market, I can help you develop a winning speculative strategy.
Contact me at Beowulfinvestments@Earthlink.net.
About the author:
William Cate is a consultant to public and private companies,
brokerage firms, banks, venture capitalists and accreditd
investors. For more information.
http://home.earthlink.net/~beowulfinvestments/williamcateventurec
apitalampequityfinanceconsultant/
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