AWESOME STOCK TRADING RESULTS 37 three little discussed facts that Wall Street insiders don’t want you to know will put you on the fast-track to mak- ing more successful trades. #1: The Trading World Odds Are Stacked Against the Individual Stock Trader One thing is for sure, various studies indicate computer- ized trading accounts for 70% or more of total trading volume in today’s markets. Once the preprogrammed fully automated computers decide to “buy” or “sell,” in- dividual stock traders—humans—are along for the ride. What’s most important about this is that a majority of individual stock traders, of course, are totally unpre- pared to handle this because they a) Don’t know this fact b) Traders let their emotions interfere with other- wise rational decisions that have to be made and c) They don't have a proven written stock market plan. This is important because, if you don’t know how Wall Street institutions and leaders use preprogrammed multi-million-dollar computers you can be fried as quick as a bug in a bug zapper. So, the next step for you here is to have a written
38 PETER D SCHNEIDER stock trading plan that stock traders use and follow along faithfully to create successful money-making trades and limit money losing trades. #2: Watch the News for the Unexpected Story or Stories of The Day The key idea with these three little discussed facts that Wall Street insiders don’t want you to know is the stock market is all about placing odds on certain outcomes based on a given number of factors and data points. I like to call it legal book making (legal bookies by computers). Based on up-to-the-moment world, national, and even local events, odds are set on price, expected results, and future expectations. As an individual stock trader, here’s what I mean: individual stock traders must pay attention to the major events of the day to protect and manage their active trades. These three little discussed facts that Wall Street in- siders don’t want you to know is critical to a self-directed stock trader’s success, and key to their ability to make successful trades. Not knowing why the stock market took a dive, went crazy, and/or jumped up leaves a trader unprepared to trade with the right mindset. My advice at this point is to have a smart phone and use at least two major news sources to scan the news
AWESOME STOCK TRADING RESULTS 39 three to five times a day. If and when the market makes big up or down gyrations—abrupt change in leading in- dicators—first things first, check the market. Watch the Dow, Nasdaq, S &P 500 in the big picture direction to monitor what’s happening in the world and your stocks. I use Yahoo Finance to see the Dow and Nasdaq. They are pre-loaded. You can add the stocks you’re watching to your list as well as stocks where you have active positions and monitor movements. A word of cau- tion: Do not get crazy watching the ups and downs. Hav- ing a written trading plan will steady your nerves. Use that tool. #3: Know Your Companies’ Earnings Release Date and Time Before You Make Your Stock or Options Trade These three, little discussed facts that Wall Street insid- ers don't want you to know is all about the fact that Wall Street’s all-powerful, automated computers know the earnings dates and times, and watch the run up or down into earnings and after earnings report. The computers are constantly monitoring the up or down movements and trade after earnings based on these new facts of how the company did that quarter or year end. If you don’t know your company's earnings date and time, you’re placing a trade ignorant of the most critical factor impacting the stock’s next move. It is estimated
40 PETER D SCHNEIDER that after a company’s earnings release, two out of three companies’ stock price remains flat or loses value. This is very important for everyone because in order to have long-term success you need to time your trade before you make it. You should have a stock market calendar and re- search checklist to determine your trade’s most crucial date. This is just a brief summary of the three little dis- cussed facts that Wall Street insiders don’t want you to know about. Self-directed stock traders need to know these facts before they trade or they risk not becoming long-term successful traders. What are the consequences of ignoring this advice – A. You don’t properly time your trade to the market or the stock you intend to trade. B. You might buy the stock at the wrong time and or wrong price. C. You might buy when you should stay on the side- lines. D. You don’t play by Wall Street’s rules and will suf- fer the consequences. Still not convinced? Well, if you're an individual stock trader who wants to Make More Money-Making Trades, go to www.hotstockstrader.com and download a
AWESOME STOCK TRADING RESULTS 41 free copy of both my Master Trading Calendar, and my Earnings Release checklist. Get prepared to make more money-making trades knowing this critical time in your trading cycle. Claim your copy right now!
10. G.U.T.S. GO USE THIS STUFF Summary: Now You Know I like to see things simply laid out so anyone can grasp the trading lesson, absorb it, and institute it for successful trading results. The foreword at the beginning of this book is my own real story of learning the painful lesson of not un- derstanding stock earnings release dates and times. My greatest failures are when I don’t complete my home- work on earnings dates and times. The greatest failures of my students and clients are when they don’t pay attention to earnings release times
AWESOME STOCK TRADING RESULTS 43 and dates. Compounding that are the Bellwether release dates—times when the major players the trading world looks to as guidance for the health of the economy release their earnings. It’s simple: Get your compelling reason for entering your trade and before you buy, research your earnings date and time for maximum effectiveness for a successful trade. GUTS = GO USE THIS STUFF. When you have the GUTS to use this stuff you will be- come a much better, consistently successful, trader.
ABOUT THE AUTHOR Peter Schneider is the founder and president of Discover Solutions Corporation. An entrepreneur for more than 35 years, he is an accomplished speaker, author, and coach. After a successful career in his family’s $50 mil- lion, 300 employee, hazardous waste recycling business, culminating in the CEO position, the Schneider family sold their operation. Before the sale, Pete worked with many Fortune 500
AWESOME STOCK TRADING RESULTS 45 tech companies and gained valuable insights into their businesses. During that time, he traded stocks in the companies he worked with, and he learned a great deal about what to do and not do. Pete’s next career was business and personal coach. He has helped many small business owners build their companies. His coaching blends teaching, consulting, and mentoring skills with his love of trading the stock market. After selling the family business, Pete immersed himself in learning all the facets of trading both Stocks and Options in the stock market. It all started with a for- mer employee sharing a 2-for-1 special stock trading program, which cost $12,000. Pete continued his educa- tion with books, CD’s, DVD’s, live training seminars, stock selection programs and software and hardware pro- grams. All in all, Pete spent six figures during his stock trading education. Pete has been training, coaching, and mentoring a small select number of clients and has decided to take this specialized training to the individual trader, provid- ing the individual trader with the insights to create a winning edge and an understanding of the prerequisites of successful stock trading. Pete’s personal quest is to teach clients how to trade the stock market, using the insights he has gained in his own trading experiences. He will tell you that he has
46 PETER D SCHNEIDER made a fortune and lost a fortune in his own trading ac- count. The fact that he has made millions and lost mil- lions makes his education most expensive for him while a bargain for his clients, who now gain the secrets of making the right moves while avoiding the costly mis- takes. Learn from his experience the insights, strategies and the emotional/irrational behaviors of the market. Pete lives and plays on the waterways of the Delta in Northern California, where he has always wanted to be. He is pursuing the life he wants and is dedicated to help- ing his clients do the same.
FREE GIFT I’d like to invite you to accept my gift of a Free Master Toolbox if it feels right for you. Because you bought my book, I would like to extend a Special Invitation to you. Receive my Master Money Making Toolbox FREE at hotstockstrader.com/toolbox. Throughout the book you will learn about critical trading windows around and through a company’s Earn- ings Release date and time, and how these trading win- dows are critical to your overall success. This toolbox will identify the window and illustrate the steps you need to take to Time Your Trades for greater success. My goal is that you make more money-making trades, and lose less money trading. The information in this book will help you navigate the most dangerous and most money-mak- ing times in the market. Learn to understand and use the Golden Magical Two-Week Window of Wealth. Statis- tics show that many people only open a book to see the chapters and many folks don’t finish reading books. This is the reason for my special offer, for this gift, at the be- ginning and end of the book.
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