Market Strategy

On December 2nd of 2013, I decided to help people understand how to play the stock market. I wanted to help people to understand a few major thin s. !irst of all, I wanted to help indi"iduals to de"elop a way of thinkin . #he lar est killer of dreams in the market is emotional attachment to money. $econdly, I wanted to help people de"elop the discipline which is key in the market% it isn&t a rocket science, it is a discipline. #hirdly, the o"erall intent was to demonstrate a strate y and to show how easy it is'in fact, to me, it takes more of an effort to crash and burn in the market than it is to make money. #o recap what has happened for those who are just catchin up, here is a brief re"iew. On 2 December 2013, I chose to you !acebook $tock as the e(ample since I started this demonstration on !acebook. )t the time, the stock was sittin at *+,.01 a share. I e(plained that you would want to set up an account with a transfer a ent such as -ompushare. In this e(ample, the amounts of the in"estments would be limited to *100.00 a transaction in that this is an amount which is easy for most to put to ether and not be so emotionally attached'emotional attachment to money is a killer in the market% *2..00 a week is not that much of an emotional tweaker. I am not takin into consideration such thin s as transaction fees or ta(es because this is "ariable dependin on who you o throu h and where you li"e. On the 2nd, I bou ht 2.0+0 shares. /ow for a month, I did not look at any financials at all, I had decided to do my in"estment once a month and nothin was oin to distract me from that ') ain, emotional attachment kills. In the time, it went up and it went down. $ome mi ht ha"e said that I made and lost money, I didn&t with either. $ince I still held onto the shares and hadn&t cashed them in, I didn&t make or lose anythin . I remember a boss of mine came to me with a market 0uestion about his retirement plan. 1e told me that he was losin money. I tried se"eral times to e(plain to him that he had on paper but until he actually cashed in the shares, he hadn&t lost or made anythin . I told him that the best thin to do since it was a mutual fund was to increase the amount of money he was puttin into it. 1e would be buyin more shares at a bar ain basement price which would brin his o"erall a"era e cost per share down in "alue. It was a mutual fund and the only way a mutual fund sur"i"es is by attractin fresh cash and this is only achie"ed with maintainin a hi h /)2 3/et )sset 2alue4 if the price is fallin they will sell and buy within their strate y to rebound the mutual or replace the mana ement. I told him that the price will no doubt rebound but in the meantime, you could pick up far more shares before that rebound. !or e(ample5 if his a"era e purchase "alue at that moment was *20.00 a share and he had 100 shares and the fund "alue per share at that moment was *1..00, he was lookin at a *.00.00 lost if he sold or transferred those shares because of panickin 'emotional attachment to your money will kill you e"ery time in the market. 1e was placin 200 in the fund e"ery month. I told him to increase it to *300.00 until the fund rebounded. 1e could afford it% he had another *100.00 oin into far more conser"ati"e funds with low returns. 1ad he done this, in the ne(t month he would ha"e picked up 20 more shares at *1..00 each brin in his o"erall "alue per share down to *1,.16 a share which meant that when it rebound to *20.00 e"en thou h that had been the be innin "alue of his shares he would ha"e made *100.00.

7on story short, he told me that I was insane, that this was real money we were talkin about and that I needed to put my money where my mouth was. I did. I did e(actly what I told him to do. In three months, I was walkin away with a 389 return. :y boss had panicked and instead of doin what I told him, transferred his shares to the more conser"ati"e funds and took a 109 lost. I found this out because he came up to me and asked me "ery solemnly, ;1ow did you do with the retirement plan<= I told him and he shook his head and said, ;I should ha"e listened to you.= 7esson here is >:O#IO/)7 )##)-1:>/# ?I#1 @OAB :O/>@ ?I77 CI77 @OA >2>B@ #I:> I/ #1> :)BC>#. Dettin back to this on oin e(ample, on Eanuary 2 nd, !acebook 3!F4 was sittin at *.+..G a share. I e(plained to my readers that you had two options. ?e could either just continue in"estin *100.00 which would result in a purchase of 1.833 shares which would result in an o"erall "alue of *211.30 for a total of 3.863 shares. -onsiderin that we ha"e in"ested *200.00, we ha"e just ained a ..69 return in the period of a month. Or we could aim for a monthly oal of increasin the "alue by *100.00. In this case, our e(istin 2.0+0 shares are "alued at *111.30. #his means that we only need *88.60 to reach our oal of *200.00 for the month of Eanuary. #his would result in the purchase of 1.G2G shares brin in our total to 3.GGG shares "alued at *200.00 which a ain is a return of ..69 in a month&s time. ?hich way you choose is up to you. Foth i"e you a ban for your buck but the first e(ample will result in more shares in the lon run while the second strate y reduces the "alue per share as far as your costs o and also allows you to pick up far more shares at lower prices and "ery few at hi her, keepin the emphasis on buyin low. /ow on the 13th of !ebruary'I waited a little to see if the price would drop% I was hopin to show you how to handle that and why it is okay and not a reason to panic, but the price keeps mo"in up so let&s o and show you what to do. In the first strate y, a ain, we are just increasin our stock by buyin *100.00 worth which will result in 1.+,+ shares because the price was sittin at *GG.,+ a share. #his i"es us ..3G6shares which we ha"e purchased for *300.00 but ha"e a current "alue of *3.,.26 which is a 1,.6G9 return'try ettin that at a bank. In the second strate y, we look at the 3.GGG shares which are worth *2+..+0. #o hit our oal of *300.00 this month, we need only *.+.G0 buyin 0.81G shares. #his i"es us a total of +.+82 shares "alued at *300.00 which we had purchased for *2+3.30 which is a 23.39 return' a ain, try to et that at a bank. 1opefully, ne(t month the stock will drop so that I can show you how to take ad"anta e of it. Fasically, there are a few thin s you need to ha"e to make a killin in the market and one of them is not really intelli ence. @ou just need to ha"e discipline, a basic understandin of the market, not to ha"e an emotional attachment to the money you in"est'>motional attachment causes panic and causes mistakes, and abo"e all to become super rich is to think of only yourself as if the whole world needs to re"ol"e around you as if it owes you bi time. I could ha"e easily made my family incredibly wealthy financially, but I lack the last ability'I ha"e ne"er been able to think of just myself. I ha"e e"en thou ht of creatin a company in which we would in"est in places like ?alH:art and usin the funds to i"e benefits

and ownership to the employees of ?alH:art, but I can&t, I just can&t find the will to make money off of others& labor. I e"en thou ht of usin the money to set up real social pro rams, with no politics, no strin s, no hu e bureaucracy with administrators makin outra eous salaries and perks. ?ho knows, may be one of you could use the market to accomplish real oals for your community. Fest of luck to all of you.