Many people are intimated by Wall Street, but we really shouldn't be because it is our opportunity to make tons of money or even some side income while focusing on our real careers. Now, before you think this is a bunch of crock, hear me out.
I make easy money in the stock market. Investing in the stock market is all about probabilities. It's about accepting risk. I'll be the first to admit that it's tough to pick stock winners on a consistent basis. That is why it's best to work probabilites.
The secret to my success can be summed up in one word...volatility. If we conduct some research on the VIX (volatility index), we will find that it fluctuates based on the news. If we chart the VIX, we can see when it hits highs and when it is at the lows. When it hits the highs, short volatility. Don't ever long volatility.
If we know one thing about America, it's that the country is resilient. Take the recent Brexit news for example. It caused volatility to spike much higher. This would have been our opportunity to short volatility. The one thing that will always happen in our lifetimes is that things will always come back to normalcy despite how bad a situation appears. Therefore, when volatility spikes, short it. Don't try to buy stocks at discounts because we never know if a particular stock is being hit by other factors such as earnings, etc. However, with respect to volatility, there are no other factors which makes shorting volatility an easy bet. The probabililty of us making money is much greater when we short volatility in times of market distress.
I know...I know...I know exactly what some of you are thinking. What if things continually go worse for the markets when we short volatility? Then, we short even at greater levels until we have a pyramid of shorts with the highest number of shares shorted at the top. We are basically dollar-cost averaging our shorts. Don't worry...America is resilient and we will profit sooner or later every time. Yes, I said every time.
I've been investing for over 27 years and this strategy continually earns me more money than trying to cherry pick stocks. I still buy individual stocks when the charts tell me that they are oversold on a long-term basis, but my easiest winners are always the volatility shorts.
And yes, I have watched CNBC, Bloomberg, CNN, etc all through my life to learn more and more about investing. But, no one seems to ever point out this simple strategy for making tons of money.
Now you know why I'm not one that is intimated by Wall Street and neither should you. Enjoy the greatest tip that no one ever shared with me.
Thank me by sharing this story with all of your friends. More money will simply buy you more freedom and allow you to do what you really want to do if money were no object. Make it no object and then go enjoy your world.