Today we are going to talk about the stock market. Some people argue about what time or when was the first corporate stock traded. Some say it was the Dutch East India Company founded in 1602. Others believe that the first trade was ancient Rome. If you would have been alive in 1602 or if you could take a time machine back to that time of the Dutch East India Company it would have been good to invest in that company. The company paid an average dividend of over 16% from 1602 to 1650. That is pretty good.
If you do a quick keyword search on the best stocks to buy then you will quickly find articles filled with opinions of why you should buy this stock or that stock. In reality, no one has a crystal ball so no one really knows what direction a stock will go. I am not a stock picker. I have tried in the past but failed miserably. Today even though I am a failure at picking stocks I want to talk about how to find the best stocks to buy.
Best Stocks to Buy: Principles.
We need to buy on principles.
What is a principle?
A principle is a truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.
I saw a fortune-teller on the streets of New Orleans one time. People would walk by and she would tell their fortune. I often wondered why she was on the street if she could tell the future. Why didn’t she go to Wall Street make millions and retire? Why didn’t she go to the casino that was less than a mile from where she was sitting?
The obvious answer is that she could not tell fortunes at all. No one can.
The future is something unknown to all of us. So when we trade why do so many people trade as if they can tell the future? Why do so many risk their hard-earned money on a future that is unknown?
Every systematic trader has done it. You put in a trade that your system tells you to trade. The trade hits your stop so you get out. Like any good systematic trader would do. Then the market moves in the opposite direction. That urge or regret or whatever feeling you have at that point is wrong if you are a systematic trader. The right feeling is I followed the system so I made the right trade. Many traders get discouraged by market direction. The direction of the market should not leave you feeling discouraged. If it does then you don’t have enough confidence in your system.
There are many markets in the world. You can buy stocks, bonds, or many other things. When you start thinking about buying a physical product it is a little different. Today we want to talk about how to buy gold.
Gold is a precious metal. It has been around since the beginning of time. Since that time it has had value. Precious metals are natural currencies. Gold is in that category. So how do we buy gold?
How to Buy Gold: Buy Physical Gold
We have all seen the commercials. The world is ending and you need physical gold. That is one way to buy gold. You can buy the gold in bricks or coins. There are companies that specialize in this. You can buy a big safe and stuff it full of gold if you want. Physical gold has value anywhere in the world. If you are going to buy physical gold you need to ask yourself how long do you want to hold it? If you buy a brick of gold you are not going to make any money if you sell it the next day.
It’s important to ask this question to ourselves from time to time. We need to ask why is it that we are trading . If you look at people sometimes people will do things and it is important to ask the question why.
What type of Trader Are You?
A man will climb into an airplane and they will go up thousands of feet and jump out. I can’t understand why anyone would want to do that. Some say they enjoy the rush that they get.
There is another man who will go into a building filled with lights. This man is expecting to get rich. He doesn’t understand odds and that the odds are against him. He is looking to have a good time. Some get addicted to it and they feel like they are going to win in the next play of the game.
What is an Oil Trading System?
If you want to trade oil it is important to have an oil trading system. Oil is a commodity. It gets much attention in the news because of its movement. When oil moves people take notice. The reason is because everyone is affected. Oil has an impact on everything we buy.When people trade oil sometimes people do in a state of panic . A news report may send the oil market rocketing up or down. That is the reason it is important if you trade oil to use an oil trading system.
In short it is a systematic way to trade the oil market. Many times in life we do things by following our gut. In trading and especially with oil you need a trading system. Trading oil without a system is like swimming in shark infested waters.
Today I want to talk about The Market Engineer. Our website is themarketengineer.com. The first question you might ask is what is The Market Engineer? The Market Engineer is a trading system. There are a lot of sites on the web that offer stock picks. They flash things like make 400% in a week or massive gains by trading penny stocks. That is not what this trading system is that’s not what this website is about. That is not what we do. The Bible is a book full of wisdom. If you are looking for wisdom it is the best place to go. In Proverbs 28:22 it talks about the people who try to get rich quick. That is what a lot of the stock pick sites try to do. Here is what it says.
What is a currency pair? Recently there has been talk of a wall between the US and Mexico. This wall has been the talk of much conversation in the political world and on the news media.
Now you might be asking what does this have to do with currency pairs. We will get to that in a minute but first. Several years ago I was in Aguascalientes Mexico. There were several things I noticed as we flew into Aguascalientes. First there were people with machine guns at the airport. Second the people drive crazy. And third for one US dollar you could get 13 pesos. That has changed recently. Currently this currency pair is 1 for 20. So that means the Mexican peso has gone down against the US dollar. Now this currency pair has been in the news lately because of the political environment but it’s not the only currency pair in the world. If you go to futures website you will see the futures market for many currency pairs.
My dad wanted bees. One day while at work my brother noticed that a group of bees had swarmed onto a tree outside. So dad and I developed a plan we would catch the bees and put them in his bee box and the six months later have honey.
That night we went up to the factory with a five-gallon bucket. The plan worked. I held the bucket and my dad raked them off the limb into the bucket with a brush. Now to most people this would have been unbearable and to some it would have been dangerous. We did not have bee suits on. I had bees on my face crawling all around. There were thousands of bees. I was only stung five times. That is a small price to pay for the big payout. The payout would be gallons and gallons of sweet pure homemade honey.