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3 Foundational Principles of Stress Free Stock Market Investing
Robert Morris
November 26, 2024
The information contained here is educational, may not be typical, and does not guarantee returns. Background, education, effort, and application will affect your experience and the profitability of any business. Individual results may vary.This is not financial advice just education *
Active Investors,
Happy Thanksgiving!
I know stress free and investing seem like two oil and water statements because the public perception of investing is marketed to make us believe that every successful investor lives in a ball of stress that rolls them into an early grave; that is so you and I grow up to believe we need a professional to manage our money.
That is so far from true if you invest using what I call a lifestyle plan and I am about to start this new series to give you the tools to build your own lifestyle plan.
As I write this I am listening to some Gregg Allman “Laid Back” and just chilling and I made 60% today. I have a friend who closed a trade last week for 1700% gain and he trades with a principle of $100,000 going into every trade.
Go ahead I will wait because I know you’re pulling out your calculator app…
Neither of us are chain smoking, yelling at our brokers to sell, sell, sell!
That image came from a show I watched last night where the one of the main characters was a wall street power broker until she lost millions and had a heart attack at 30.
I know hedge fund managers and many of them are great traders because they relax about the action. They can relax because they prepare.
In fact I have less stress about trading then I do making decisions about what Christmas presents to buy my family!
We can all start from anywhere then we build up to where we trade with that $100,000 prinicple.
Let’s get into the good stuff
Principle #1
Discipline is more Important than your Belief
The only way to have consistent success in investing and trading is to live by disciplined rules and disciplined criteria for deciding how to and when to buy then sell.
No one cares what you believe about a company or their incredible new software or drug that is going to change the world. I know you care and if you’re a primary investor in the business like a person who invested pre IPO and owns preferred shares, then you should care; but GOD help you if you bought because of belief.
Do not tell anyone you learned how to invest from me, because… I have never said that and even doped up never will!!!
You’re belief should be reserved for your religion or if you’re going to start a company.
Believe in your ability, believe in your financial dreams, but do not buy based upon your star pattern, birth sign, or because you found a penny heads up on your way into work.
The formula for success here is 10% How to+ 90% Mindset = fustration. Add in 100% discipline 100% of the time and you have the formula for success.
10% How to+90% Mindset+ 100% Discipline 100% of the Time = Success
Principle #2
Trust no one
“ If one equity analyst says it’s raining and the other says it’s sunny… Your job as an investor is to ignore them both and instead look out the fu**k**’ window” - Trading Tao
Since you are reading this I know you are a person that wants to control how your money grows. You have to also be the person who can make your own conclusions about what the evidence tells you is going to happen to the market.
You have to learn how to put the puzzle together yourself.
Seriously, start working on more puzzles becasue the best traders I know are highly skilled at putting puzzles together without all the pieces.
You learn what are the important pieces to get close and what are the pieces that do nothing for you.
That is why it is ok to use charts to make decisions, which leads us to principle #3.
Principle #3
You win when you control your emotions
You have to work at getting rid of the idea that money is the result that matters.
If you keep focusing on the money then the more success you have you will keep cutting your winners short and letting your losses run.
You will become paralzyed by fear of loss.
That fear can make you see things in the charts that are not there.
That fear can drive the greed in you to always hold on for one more dollar, even when you have the best chunk of profit you are going to get.
You always want to be the person who exits before the last bit of money is squeezed out of a position.
The best way to control your emotios along with discipline is to use charts for all your buying and selling desicions.
ONE ANNOUNCEMENT-
I am moving the newsletter to release bi weekly on Tuesday and Thursday until further notice. I want to give daily market updates but right now my time is to limited.
“ Create the life you want by building a set of principles that guide your journey to your desired destination”
I want to here from you, I have a simple form for you to let me know what your questions are about the stock market and building a stock market income.
Click this line here for the form
Or the button below
The goal here is for you to learn the edge that you need to begin building your families financial generational wealth change!
Your Friend in Success,
Robert M Morris
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