After receiving some good advice from Jim Samson, I’ve been doing quite a bit of reading over the past week – mostly reviewing the guidance from our handpicked library.
And I can’t even express how helpful it’s been. I’ve gone back to the basics and it’s retaught me a very simple yet powerful lesson that makes all the difference:
There’s only 1 thing you need to know in order to make huge money from the stock market with ease, and this is it…
Don’t let Wall Street insiders fool you. Don’t allow the fund managers to scare you. Don’t give in to the so-called “experts” who only want you to think that investing is so complex that you must trust them to handle your money…for a fee, of course.
You see, the game is set up by people who don’t want the Average Joe to realize he can make money through stocks all on his own. How will they collect a paycheck for telling you what to do if that were the case?
But the truth of the matter is that it’s easy to make money from investing whether Wall Street likes it or not.
And it all boils down to 1 simple lesson…
Stocks rise in a bull market, and fall in a bear market.
Simple, right? If all you ever learn as a student of the stock market is to understand the primary trend, you’ll do just fine.
Actually, you’ll probably do better than most professionals who can’t even beat the market!
So what’s the primary trend?
Depending on how in-depth you want to get, any given time period for the stock market can be broken down by primary trend (often years), secondary trend (often weeks), and even tertiary trend (often days). We’ll focus on the first two.
The primary trend is the overall direction of the market. The secondary trend is the intermediate swings of the market as the primary trend continues to either climb or fall.
If the primary trend is going upward, you’ll notice this in the midst of the intermediate highs and lows of the secondary trend:
- Almost every new peak will be higher than the last…
- The valleys carved out by the wave-like pattern of the climbing primary trend will get higher and higher…
- The market will often open the trading day weak and finish the trading day very strong…
If the primary trend is downward, you’ll notice the opposite:
- Almost every low point will be lower than the last…
- The high points from the wave-like pattern will get lower and lower as well…
- The market will be more likely to open on strength, but then close with forceful downward action…
And once you understand which way the primary trend is going, the odds are automatically stacked in your behavior. When the primary trend is upward, buy stocks. When the primary trend is downward, sell stocks.
That 1 lesson will make you easy money in the stock market for a long time.
