This concept of retail v. wholesale pricing is something that can be applied to anything in life that we do. Whatever it is we buy, from real estate to groceries to a car.
I'd like to begin with using this concept in the world of investing & trading, especially since these current markets are testing the patience of all of us. My evolution as a trader has come through a lot of self reflection and the ability to pin point where my weak points are so that I can focus on them. When I first began I was notoriously a 'rapid fire' trader where I would make multiple trades throughout the day and week. You can watch a video here from 2013 where I made maybe 5 trades on Crude Oil in the span of 45 minutes making about $4,500 to get an idea.
When you think about why investors fail, be it in real estate or markets, it's interesting. We all have the same charts, the same tools and the hours in a day. Now sure, some are more capitalized than others, no question, which does help in certain strategies. Without going too much in depth here, I believe one of the reasons is lack of patience. I think we can all agree that as traders our best trades have come from situations where we stalked an entry, placed the trade and then allowed the trade to 'do it's thing'. I can assure you this, staring at the 5 min chart after the trade is on will not make the stock go higher or lower, no matter how hard you try. So what does this come from? How can we get to the point where we can establish patience? After all this is our capital we're talking about here, it's important.
First, I think we need to throw out this concept of buying something when prices are going up, by then it's too late. The concept of buying a stock when it makes new 52 weeks highs on a 'break out' rarely, if ever works. How many times have you personally bought a stock only to see it instantly go against you then find yourself saying 'it's a good company, I'll just hold and it will come back?'. How many times have you seen a stock 'selling off' and though this is too expensive, or maybe you've held it and though 'oh no, I need to sell, only to see it rally after you sell?" Changing your perspective of how to invest starts with learning how to think like Wall Street, how to think like a deal desk. We'll be discussing more on this topic at our free too attend Investing Workshops.
You can view a full schedule of them here in a city near you.
I'll be in New York on September 24th for one so that would be a great time to come as well and there are still some seats left.
In the meantime you can begin learning how to change your investing beginning with options trading. Our most popular starting point for 80% of our students is the Remora Options Training. The program provides the student with 12 months access to Shark Chat Pro, one hour of coaching, and two easy to understand options trading strategies that can be applied with a $2,000 starting account size.
Learn more about the program here.
Instructor, Core Foundations