Understanding What’s to Come…

Alright my fellow investors let us get down to business. My plan today is to talk about some of the unknowns that the public thinks are realities about the stock market, but these unknowns will be known to you by the end of this newsletter and you will be in the top 1% of investors because you are now in the know.

First let us talk about what is come in the stock market in the coming weeks.

Based on what I know I will give you a layout of what I expect will setup going into September and I will write this part of the newsletter as if I was writing a plan for someone to follow with my own money.

Going into the end of August and early September the election can have an effect on the market, but only in the sense that we may see decreased movement from big money until after November 6th. This will result in movements that are less defined by big swings or just downward profit taking. After the election is final then as far as the market is concerned it will continue as business as usual for the next 4 years.

How do we know what direction it will continue in? Does it matter who wins?

To you or I probably yes, but as an investor NO!

The market will do what the charts and historical normal says it will period.

The FED may alter the interest rates and that can have an effect but we will talk about that once we know what is most probable.

End of August we usually see more shallow movements in ethier direction, but the major charts are pointing to a serious decline coming and that period of time would fall nicely into mid-Septmber or maybe even the 1st week.

We expect a more sluggish bull market and the biggest push to the upside rarely comes before October so with earnings ending the movement into profit taking and downside will all points to more down coming.

To add more fuel to the downside fire historically we expect heavy profit taking from late August into September.

The next question you have to ask yourself is are you ready with what stocks you will trade during this sell off or buy once the sell off is over?

Stock Market Lies, Myths, and Half-Truths

Let us spice this up a little by digging into the nitty gritty as soon October will be upon us and we will enter the best 5 consecutive months of trading for the year what beliefs can we shed because they only hurt and do not help.

1. Mutual Funds are the key to Retirement Riches!

2. The Stock Market is Unpredictable

3. 10-20% a year is excellent as a return

4. You need an insiders help to invest well

5. Buying and Holding is the way of the Wealthy

Are Mutual Funds Mutually Benefical?

If you own mutual funds what caused you to buy them? Do you want the diversification? Are you aware of the pitfalls. Yes, or no?

Mutual funds have made some men wealthy such as Sir John Templeton, but I believe there hay day may be in the past. Whether it is or not I can tell you that a mutual fund has two primary issues that keep me out.

First is that a fund has to keep buying less and less of it’s desired stocks, it’s A list of stocks if you will, as each fund can only own so much of one companies stock in their fund portfolio.

Second, holding a fund as it goes up is great but holding that same fund during the down turns and paying the ridicilous fees can cause your gains to become watered down or evarporate all together!

Better to find the funds top ten holdings and buy shares in those companies alone.

The Stock Market is Unpredictable!

If the stock market wasn’t predictable than every fortune made would eventually be lost to the changing tides.

The key is not how to predict the market swings, but to studying to understand how to know when the tide is turning and buy in when the wave is beginning to build a crest.

Never trying to predict a turn rather waiting until the turn has created a movement in a new direction and flow with that direction.

You never want to be the first one in and never the last one out.

The chunk in the middle piled up overtime will make you a wealthy person.

The quote above is true in the sense that the patience is the discipline that creates the wealth

Ever heard of the proverb that no matter the economy of the jungle the lion never eats grass.

Well the lion never eats the most challenging meal ethier.

The lion eats the one out of the herd that is injured and weak.

In the market you are the lion. You are to hunt the weak and make meals of the weak because that is the goal of the hunter.

I do this buy acting in the market on what happens 80% of the time as if it happens 100% of the time. Does this sound stupid to you?

I do not care because as long as I am correct 7 out 10 times that I take action and I kill my losses quickly then when it comes to winning I am king!

The stock market is not only predictable. The market has done similar things month in and month out going all the back to 1900. Take for example that most good trades setup in the 1st 6 days of the month, middle of the month, or the last 6 days of the month.

20% a month returns…

If all you ever earn is 10% a year then your hope of even retiring when inflation is 10% or higher is not going to end well for your family.

This newsletter is about creating thousands of retail investors that break records of 60-100% a year regularly. My teacher has a goal for his wive’s money of growing it at minimum of 100% a year after taxes, even after he is dead.

My personal IRA plan is growing by 100% a year for 11 years compounding the money before I begin to use for other things. I am 33 now and imagine if I started now compounding that money by 100% per year until the 65 ½ cut off.

That is the power of a operating in the market controlling your own financial destiny. Never let someone else tell you what you can or cannot do with your own money.

Do you really need an insider’s help?

As I always do I will give you the truth

Yes and no is really the answer here because if you are reading this newsletter than you have bigger aspirations for your own financial future than the majority.

For us the stock market is our money printing press. We go into the market to cut a chunk of profit out and take it back home.

No we do not need insider’s tips or help to make us our millions, but the right advisor can help us grow our wealth exponentially.

The bottom line is you need to find someone who is an expert in doing something you lack skills in. Such as an advisor who understands life insurance, or an expert who knows how find diamond in the ruff companies for you to buy.

But as a standard I have found that all investors will have better returns in the long run as long as you are willing to learn daily and follow your own plan with discipline. Just look at Buffett, Templeton, or even Ben Franklin.

Long Term is the Only Way to Invest

Buying and Holding is the way to build wealth overtime it is proven. The question is how long do you hold and what do you do if you have very little money to start with?

That is why a 3 prong approach to investing is the best way for us born in the middle class to build wealth in one generation.

You invest short term by buying into growing companies and using options to print money from those investments or trades depending on the timeframe of the hold period.

You invest for the long term to buy and hold growing companies in emerging markets.

You trade short term to build up stacks to give you the buying power for when opportunitiy presents itself.

This is the part of the year where opportunities are scare. I find myself being very choosy this time of year.

My options for the week:

GS- possible move

URI - possible move

NVDA- post earnings move is possible

I have just sold out of 2 trades

SOXL- Aug $40 Calls 12% profit

NVDA - Aug $123 Calls 52% profit

Welcome to the Investor Family!

I am building a community here of people whom are tired of the games being played with their money.

Investors that want to stand up and take charge of their fortunes to build generational change for their families.

Your Friend in Success,

Robert M Morris

Please note this is not financial advise as I am not a financial advisor and honestly not sure I want to be.

Give this information to your own financial advisor before acting on it in your own voliation.