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Technical Tuesday: New To Investing? Here's Your Biggest Advantage

 May 29, 2012 02:05 PM


(By Tycoon Report) New to trading or investing?

This article reveals a very powerful secret the financial professionals don't want you to know about.  It will change the way you think about the odds of success in the financial markets.  It will make you a far more confident investor or trader.

Starting something new can be intimidating, or at the very least, confusing. 

But I've been trading my own money and working with investors from all walks of life for about 17 years and I can tell you right now that, as a new player, you have a big advantage over those with experience.

Seasoned investors have been realizing over the last decade how they have been lied to and taught the wrong thing about the market in order to keep the insiders, well, insiders.

One Huge Advantage You Have:  It's easier to learn the right way from scratch than to have to unlearn all the wrong things that have been drilled into your head over years or decades. 

There has never been a better time to start learning how to invest.  In the 1990s, when online trading first became available to individual investors, I was stunned at what the brokerage firms would offer their customers who lacked any kind of preparation or experience.

Individual investors got wiped out within a few years for two reasons:

Giving individual investors access to trade their accounts on their own for low commissions was like handing a patient a scalpel and telling them they can save money on commission by performing their own heart surgery.  (Okay, that's a bit extreme.)  Sure, they had the tools to take matters into their own hands, but not the know-how or experience.

Online trading couldn't have come at a worse time or during a worse market for investors.  It became available during the dot-com boom where, for a couple of years leading up to mid 1998, most stocks and nearly all tech-related stocks (not just "tech" stocks) were going up, and some were doubling every month or two.

These staggering gains were all over the television and newspapers, so individual investors, who had been schemed on by high commission brokers for years, said: "Hey, I can do this."  And for a short time, they could.

But in 1998, something happened that most seasoned investors have a hard time understanding.  The major averages (like the Dow Jones Industrial Average, NASDAQ the S&P 500) continued to advance while most stocks started trading lower.  It was just a few enormous winners that kept those averages advancing, creating the illusion of a bull market.

This caused people who still used financial professionals to hate them even more (because they thought the broker was recommending the only stocks that declined during a bull market).  So those investors fired their brokers and started trading online, only to continue to believe they were in a bull market where they couldn't miss.

Fast Forward to 2004

With the progression of the information age have come online resources (other than just the scalpel) that give anyone sitting in their living room the same chance as most professional money managers.  Now they just have to learn what to watch, which tools to use, and when.

I left the money management business and co-founded The Institute for Individual Investors in 2004 (then "Tycoon Publishing LLC") with Dylan Jovine to level the playing field (such a cliché) for individual investors, new and seasoned.

If you're new, it's good.  You have a fresh start.  If you're seasoned, then you may have an edge as well as a drawback or two.  

Fast Forward to 2012

The secret that institutions are fighting tooth and nail to keep you from hearing is that you don't need them -- AT ALL.  You have access to the same information they have.  All you need to know is how to interpret it.  And you don't need to know everything they know in order to make money.  Just get really good at a few aspects of trading and you can make money.

These institutions need to know a lot more about the financial markets than you in order to buy and sell stocks.  They have to make enormous efforts to buy or sell without moving the price of the stocks by too much.  

Because it takes institutions lots of time to enter or exit positions, they sometimes need to trade based on less solid information to get a jump on the market action.  They need to lure buyers into the market to buy the stock they are selling so as not to move prices. 

But you don't need to be the "sucker" they con into staying in the market, buying what they are selling.  And you don't have to figure out how you're going to enter or exit your positions without moving the price of the stocks you're trading.  You can move in and out of position more freely and you can trade on untainted information -- you can trade on what price action is telling you is most likely to happen next. 

Take Advantage of Our Programs

The two key things a student needs to make successful education fun and easy to attain are peer communication and a good mentor.  So aside from the online classroom platform we've built with live classes, quizzes, points, tools and community Q&A, we made sure to build the tightest and easiest online community to be a part of.  There is no better time than today to learn how to take matters into your own hands because, sadly, the professionals out there are often just pros at relieving you of your money.  Managing it properly is often a secondary goal of theirs.

As Franklin Delano Roosevelt said: "The only thing we have to fear is fear itself."  Congratulations on reading The Tycoon Report and looking for new ways to empower yourself and your family.  We are happy to make it all possible.  
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