Money is literally on the street but we have to see it with both
our eyes and our mind. Millions of stock shares and billions of dollars
are changing hands on each trading day. There must be a place for us to sneak
in and collect some of the “dough” on the street.
Stock market, just like any other commodity, is influenced by the
universal economic law of supply and demand. It moves up, down and
sideway in any given period. One more powerful factor on Wall Street is
panic sell and buy. Human beings tend to follow
the crowd and that is when most of the damages is
done. Mr. Warren Buffett once said :”Be greedy
when everyone is fearful and be fearful when everyone is greedy.” I agree
with him. We can take advantage of people’s greed by selling into
strength. We can also take advantage of people’s fear by buying into
weakness. By doing so, we get the most when we sell and pay the least
when we buy. Of course, that is from stock traders
point of view. They can either do the traditional way of buy low sell
high or do the opposite way of sell high buy low commonly known as
“shorting” the stock. From option traders point
of view, they can sell in both long and short positions taking advantages
of time decay and volatility collapse. Option traders can also buy
“insurance” for their positions just in case they are wrong. On top of
it, they can also delay their debt payment or speed up their debt
collection and close their positions in their desired time frame. With
the right knowledge, collecting money on the street is possible.
I remember in
the old days, I woke up before 6:30 am to pick up my Wall
Street Journal to follow up the stocks I plan to buy or sell. When I
decided to trade, I then picked up the phone to place the order with my
broker. Thanks to today computer and internet technology, I can trade a
lot more efficient now. With the right tool, collecting money on the
street is possible.
Most people think stock market is the place to make quick, big
buck. That is a fatal mistake. Patient and persistence are the keys.
Don’t let a temporary setback stops us from reaching our ultimate goal.
Treat trading as a gamble and we will lose as a gambler. Treat trading as
a business with a plan and we will benefit from it. With the right
attitude, collecting money on the street is possible.