Learning how to manage your own money

Apr 13, 2022

Why you don’t want to bother with 401k plans, mutual funds or industry recommended products:

Your fees have nothing to do with it
Its the suboptimal returns
Why cant you pay closer attention and try to figure it out yourself with proper risk management?
Isnt there a better way than locking away money for 5 percent returns?
Noone wants to take your money when the market is moving like it did in 2020 because theyre scared. And the go “all cash" and “risk off".
These managers cannot risk capital like you think. If they invest too much somewhere, they can get caught wrong footed. Then they have to liqudate.
And there is just too much size to these funds. Your money isnt safe. You can pick good stocks yourself.
Were entering a period of stock picking. Things will sell off faster and easier as well. You can short bad names.
Open your own brokerage tomorrow and set aside time to be financially disciplined.
Its probable that your favorite funds are going to implode in the months and years ahead.
Registered Investment Advisors will find good stocks for you, but they also have to make money from your money. Better to learn what they are getting into now.
Dont join a $2000 newsletter and alerts service from the internet. If you type into google stock market alerts service, look at the ads. Yeah.. stay away. Youre gonna get analysis paralysis and waste time.

This is how you pick stocks to trade for short term profits:

Look at what the direction of the market is by judging when the last major bottom was put in. And then determine the size of the bottom. Size is determined by the distance and power from the most previous bottom of the same magnitude.
For March 2022, the US equities have a 20 week bottom, or trough.
This is ample to produce winners for the first few weeks of trading, but try to look at what sectors are doing the best when this trough is put in.
For March, it was $TSLA $CL (crude oil futures) and consumer discretionary stocks.
Wait for days that are at the end of an 8 to 10 day cycle from the date that the index ($NQ or $ES) made the trough.
Go long and try to hold for the peak of the first 10 week cycle of that 20 week cycle trough.
The peak of the first 10 week cycle on a strong stock could be after at least 45 to 50 days has elapsed.
Watch out for earnings
Move your stop up after a couple weeks
Take profits
You probably did better than your RIA or fund manager.

Congratulations

Until next time,

Derek Frazier

Advised Trader