97.4% of investment strategies fail, and so do the people in the stock market who use
these investment strategies.
But why is that?
What is the cause?
And how can you be one of the other 3%?
For this, in this video we will look at my reasons, which I learned through my experience
in the stock market and show you, in the same move the 3 rules to sustainable and consistent
profits.
So if you are someone who has inconsistent investment results and feel that you are not
able to generate profits in the stock market, you are now in the right place at the right
time!
But before we get to the main topic of the video, first of all welcome back and if you
are new on our channel...
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First, it must be said that it does not matter in which markets you invest and how you invest.
Some people do day trading in Forex, others invest only in real assets such as gold, real
estate or watches and others invest in commodities such as oil.
Because in some way you will follow a strategy that you use to systematically invest in these
markets....
at least I hope you have a systematic approach, otherwise you already have the reason why
you fail in investing.
If you don't have a strategy or a plan to invest in the markets based on fixed rules
and thought processes that will give you an advantage in the market, you have lost from
the beginning.
And then there are also countless strategies that you can follow: Buy and Hold, Growth
Investing, Value Investing, Dividend Investing and so on.
But why do I say that 97.4% of all these strategies are likely to end up losing you money?
Every investment strategy has a big problem if it is not set up correctly....
I call it a deadly law hidden in every investment strategy or simply: The #1 reason why you
fail to consistently make profits in the markets.
What is this fatal law?
Every investment strategy is built on certain market conditions and when these change, which
is more often the case, so do the results.
This means that even if your strategy is currently working, it is likely that it will only work
in the current prevailing market conditions and as soon as these change, you will be helpless
to see how the market recovers your gains.
To explain this with an example: Imagine you have an investment strategy that invests in
US indexes such as Dow Jones, S&P 500 or even the NASDAQ.
These markets have known only one direction for years: up.
Let's assume your strategy is based on a simple rule: If the market falls by 5%, you buy more.
Now you do this for years and believe that your investment strategy is the absolute madness,
because you take good profits for years.
But it is also clear, because these markets have been rising for years.
But what happens as soon as this market condition changes?
All of a sudden these markets don't go up anymore... the economy gets worse, crises
follow, interest rates are increased and all of a sudden your strategy doesn't work anymore,
because the indices fall, as it might be the case now.
This is the big problem with any investment strategy: they are based on rules that work
only in certain market conditions and as soon as these change, you lose money and desperately
look for the next strategy.
Probably sounds familiar to you, doesn't it?
But what can we do to get around this?
To get around this, there is only one way: You have to understand how the markets and
the stock exchange really work, i.e. how they work at their core, and build a strategy around
this with fixed rules.
Only then will it be possible for you to earn money on the stock market.
So the question is: How does the stock market work?
How do the markets work?
Before I answer this question, I would like to give you the 3 rules for constant profits.
Because these are elementary and important to understand:
1.
stop chasing opportunities in the market to make money.
I have seen many investors who had an investment idea but were too late, for example, and still
invested even though the train has long since left the station.
The result?
One more loss.
So don't try to chase every investment opportunity with pressure and if you realize that you
are too late and you can't get the investment at the price it is in your plan, just let
it go.
It is also known as FOMO, which means Fear of Missing Out.
2.
Focus on eliminating bad investments before you take them.
Also goes along with the first rule and means that you should really only take the investments
that meet the majority of your criteria and rules.
3) Take only investments that are most likely not to lose money.
This is a change of mind, because most people focus on taking investments that can make
them money, which often leads them to take investments that were actually not that good
and let themselves be seduced by their emotions and the prospect of making money.
This is another reason why investors fail: They have poor emotional self-control and
let their emotions guide them too much.
Now, how to get around the deadly law of any investment strategy?
For an investment strategy to really work sustainably and generate money in the long
run, it is important that it contains rules and thought processes based on how the market
really works.
Only then can it avoid the fatal law of any investment strategy.
But how does the market really work?
The market is based on a turnover principle, which means that there should always be a
balance between buyers and sellers...
so basically just supply and demand, which everyone should know.
However, in the markets, there are small market participants and large market participants.
The small market participants are us and the big ones are banks and institutions and that's
where it starts to get difficult.
Because the banks and institutions own a lot of money, which they manage and if they want
to buy a share, for example, they need the other side, so someone who sells.
In order to get this counterpart, i.e. the selling positions, banks and institutions
start to manipulate the prices in order to get the small investors to do what the banks
want.
This means that a stock can fall in price even though the actual value of the stock
has not fallen.
This means that an investment strategy that manages to fundamentally determine the actual
value of a stock, and at the same time identify the big banks to swim with them and not fall
into their trap, is the only way you can consistently and sustainably make money in the stock market.
If you want to have a detailed video about how my investment strategy looks like, write
"investment strategy" in the comments and I will make a video about it in the future.
And if you are losing money while investing, watch the video on the right now to avoid
these 5 investing mistakes!
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