Trading Nuggets
Wake up and Smell the Coffee...

by Mike Mc Mahon of

I occasionally need to take my students by the ears and shake them. Recently, I was asked if it was time to get back into a stock. I asked “why”? The reply was cause for me to re-double our efforts to connect with all of you. The reply, “ ‘Coke was raised to Overweight’ by the Analysts”.

This really gave me pause. OTA has been striving to “shine the light of day” on the entire system. To open everybody’s eyes, ears and minds to the fact that Wall Street and its Analysts really don’t care about you. They really have only their interest at heart. MLCO settled for $100,000,000.00 last Summer, another gaggle settled for 1.4 Billion (Yes, with a “B”) this Spring without having to admit guilt. Why would anybody listen? Well, we can’t blame the people who have not had the education, but one of my own?!?!? So, back to basics.

The only person in the world that deserves your trust is You (and Your Mother – maybe). You need to take control of your money – if, and only if, you know what you are doing. If you do not, then do not risk your money in the market! Nobody out there cares if you make money or not. They only care if “they” make money or not.

If they tell you “it’s a good buy”, who are you talking too – A Buyer or a Seller? It does not matter whether they are your best friend or your friendly Wall St Analyst – they have an ax to grind – it just ain’t your “ax” that’ll get sharpened.

There are good Analysts and there are bad Analysts. You need to be a good analyst, yourself. There are a number of very good “Stock Pick” newsletters/chatrooms out there. The problem with relying on someone else is that you become lazy, you become dependent. If you are successful in your trading endeavors, if your discipline is tight as a drum, then you can afford to use other people’s thoughts or ideas to add to your success. But first, you must make sure that you Could (and Can) do the “work” that is necessary for your success and have proven it to yourself – nobody else.

If Trading/Investing were about listening to everybody’s opinion, then “everybody” would be rich. Unfortunately, most of the populace listen too much and do not “do enough”. By “doing the work”, you learn to trust yourself. By “doing the work”, you have only you to blame.

The “blame game” is another pitfall – “It’s not my fault, they lied to me” – “I would have made a million if they had done their analysis better”. Hey, it your money, it’s your decision – not their fault that they were trying to make a living.

If you decide to listen, then check it out before you put hard earned money at risk on others’ work. This assumes (never a good thing) you know how to “check it out”. If the idea is based on charts, well, go look at the chart and “see” what they saw. Once you are able to do that, then you really don’t need them anymore- do you? Do the work and become free.

Ultimately, you must have an education – through a school like OTA or through the School of Hard-Knocks (very expensive schooling!) – to intelligently pursue a business, trading or otherwise. You cannot make money in this market without the knowledge. If you want others to handle your trades, then you need to have the knowledge to see that they are doing it right. If you want complete control, you must know what you are doing to see that you are doing it right.

Stop looking for the easy road – it is really very bumpy, has some large ruts – and as we have all found out, there may be bandits lurking on that road. “Stick ‘em up, Pardner!” or “Buy ‘em up, Pardner” – is there much difference? You had better learn...

Online Trading Academy - Professional Trader Education Article by Mike Mc Mahon, Lead Instructor - OTA

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