FOLLOWING THE CROWD IS THE BEST WAY TO LOSE MONEY

Below I am going to refer to some templates why is one of our biggest trading mistake is the mob behavior? Don’t forget 95% of future traders are losing their all capital within a year. So the question is - you want to be in the majority of losers or be in the 5% winner’s group. That is the key question.

How you can be in the 5% profitable team? It is much easier than you think.

As my „ABC RULE” says „ALWAYS BE CONTRARIAN”. Buy different assets and stocks which the mass buys. For the stock the best investment system is the „DOGS OF THE DOW”. This investment strategy invented by Michael B. O'Higgins which says you have to buy the most hated and undervalued stocks from the DJIA 30 stocks. Don’t buy the most expensive, buy the laggings because sooner or later they will catch up. The hated stocks have the best buy opportunities because the best periods to invest are when news about that certain stock is negative or just plain boring to trade. Don’t buy the great performer hero stocks just prefer the pariah, most ignored stocks.

Best Buy
The Best Buy stock was in hype in 2013 around 237% gain in 2013. But a few weeks ago tumbled 30% and not here anymore. I love the pariahs not the heros in stocks.

Netflix
Soared in 2013 more than 300% was the biggest gainer of SP500. This year down with 10%.

Twitter
The Twitter doubled its initial public offering price in 2013, but now is down nearly 20% from the all-time high.

Tesla
Be very cautious. Made around 350% last year, this track seems so unsafe to me. So far, the price is still doing well, but I would never buy that stocks at this levels.

I like pariahs now like Coca- Cola, McDonalds and IBM.

The BFM Assets Team.