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Buy and Hold Is Dead: How to Make Money and Control Risk in Any Market

Book Description

An eye-opening look at how investors can take control of their financial life

Buy and Hold Is Dead provides actionable strategies and disciplines, which can be used to earn positive results in any market environment. Money managers rarely outperform the stock market over time, and this has become a sticking point for many people as our uneven economic landscape continues to unfold. This timely guide is designed around a step-by-step educational process in which traders and investors lean how they can protect their wealth and make money regardless of market direction. The goal of Buy and Hold Is Dead is twofold: to dispel old-school investment techniques and to show you how to maximize your returns without sacrificing time or lifestyle and without the use of a money manager.

  • Identifies the duration of the current economic down cycle and warns of a Greater Depression

  • Encourages readers to use proactive trading strategies that can protect their wealth and make them money in any market environment

  • Discusses why investors cannot afford to rely on the selfish guidelines imposed by big brokers and money managers

Losing less is never a winning strategy, and this book skillfully addresses why it should not be considered a positive result despite relative market performance.

Table of Contents

  1. Copyright
  2. Preface
    1. 0.1. Managing Risk Is Not a Choice, It Is a Requirement
    2. 0.2. Rule-Based Strategies Are Integral
    3. 0.3. The Ultimate Goal
    4. 0.4. Think Outside of the Box
    5. 0.5. The Comfort Zone Lies Ahead
  3. Acknowledgments
  4. 1. The Investment Rate
    1. 1.1. Economics Is All About People
    2. 1.2. The Relationship Between Market Trends and Economic Cycles
    3. 1.3. A Leading Indicator
    4. 1.4. New Money Drives the Market
  5. 2. Keep It Simple, Sweetheart
    1. 2.1. An Example: Interest Rates
    2. 2.2. Don't Listen to the Noise
    3. 2.3. Encountering Roadblocks
    4. 2.4. Back to Economics 101
  6. 3. Brackish Investors and Their Impending Doom
    1. 3.1. Predicting the Future
    2. 3.2. A Bad Idea
    3. 3.3. The First Line of Defense
    4. 3.4. Protection from the Mistakes of the Government
    5. 3.5. Protection from Big Brokers and Money Managers
    6. 3.6. Brokers Are in It to Make Money!
    7. 3.7. Don't Be a Brackish Investor
  7. 4. Golden Handcuffs
    1. 4.1. The Path to the Comfort Zone Starts Here
    2. 4.2. Start with the Basics
    3. 4.3. Recognize Potential Pitfalls
    4. 4.4. The Emotional Ties Levied by Big Brokers
  8. 5. Since When Has Losing Less Become a Winning Strategy?
    1. 5.1. Diversification Does Not Protect Against Broad Market Declines
    2. 5.2. Conservative Stocks Fall, Too
    3. 5.3. Risk Control Is Our Responsibility, Not Theirs
  9. 6. Redefining Balance
    1. 6.1. It Is a Lifestyle
    2. 6.2. Excuses Result in Losses
  10. 7. Contemporary Darwinism
    1. 7.1. Natural Selection in Modern Economies
    2. 7.2. Corporations and Governments Are Different
    3. 7.3. Adapting to Contemporary Darwinism
  11. 8. A Proactive Aversion
    1. 8.1. The First Step Is the Hardest
    2. 8.2. The Right Lifestyle and Mindset
    3. 8.3. Proactive Strategies: The Only Ones That Work
    4. 8.4. Corporate and Government Missteps
    5. 8.5. Proactive Strategies Control Risk
  12. 9. Embracing Independence
    1. 9.1. Proactive Strategies
    2. 9.2. The Third Major Down Period in U.S. History
    3. 9.3. Taking Advantage of the Turmoil That Lies Ahead
    4. 9.4. Just Give Them a Chance
    5. 9.5. Having the Upper Hand
  13. 10. Ahead of the Curve
    1. 10.1. Reshaping and Rebuilding
    2. 10.2. Boot Camp
    3. 10.3. Developing Strategy Without the Noise
    4. 10.4. Cash Is King—Sometimes
    5. 10.5. Opportunities Abound
  14. 11. 2009: Return to Parity
    1. 11.1. Measuring Immediate Demand Ratios
    2. 11.2. The Return to a Declining Curve
  15. 12. Personal Balance Sheet
    1. 12.1. Identify Personal Hazards
    2. 12.2. Make a List and Check More Than Twice
    3. 12.3. The Things We Do Wrong Correct Themselves
  16. 13. Every Day Is a Tuesday
    1. 13.1. Our Model Works Effectively Every Day
    2. 13.2. Plan in Advance and Never Diverge from the Plan
    3. 13.3. Interpreting News Events Is Not Necessary
    4. 13.4. Turn Missed Opportunities into Realized Gains
    5. 13.5. Anticipate Market Reactions and Be Right Most of the Time
  17. 14. The Game Plan
    1. 14.1. Starting the Analysis
    2. 14.2. The Tortoise versus the Hare
    3. 14.3. It Is Not Rocket Science
    4. 14.4. Keeping It Simple: The Daily Routine
    5. 14.5. Using Data Points to Make Trading Plans
    6. 14.6. Developing an Actionable Array
    7. 14.7. Starting a Personal Journal
  18. 15. Oscillation Cycles
    1. 15.1. Technical Analysis Defines Trading Strategies
    2. 15.2. The Architect of Strategy
    3. 15.3. Combining the Patterns
  19. 16. The Golden Sequence
    1. 16.1. Added Value
      1. 16.1.1. Stock Reports
      2. 16.1.2. Stock Filters
      3. 16.1.3. Sentiment Table
      4. 16.1.4. Fibonacci Calculator
  20. 17. Rule-Based Trading Strategies
    1. 17.1. Differentiating the Strategies
    2. 17.2. The Six Proactive Strategies
    3. 17.3. Strategy 1: Featured Stock of the Day
      1. 17.3.1. Description of the Strategy
      2. 17.3.2. Objective of the Discipline
      3. 17.3.3. Tools Integral to Positive Results
      4. 17.3.4. Rules Associated with the Strategy
      5. 17.3.5. Risk Controls and Assessments
      6. 17.3.6. Creating the Strategy
      7. 17.3.7. Real-World Example
      8. 17.3.8. Potential Pitfalls
    4. 17.4. Strategy 2: Stock of the Week
      1. 17.4.1. Description of the Strategy
      2. 17.4.2. Objective of the Discipline
      3. 17.4.3. Tools Integral to Positive Results
      4. 17.4.4. Rules Associated with the Strategy
      5. 17.4.5. Risk Controls and Assessments
      6. 17.4.6. Creating the Strategy
      7. 17.4.7. Real-World Example
      8. 17.4.8. Potential Pitfalls
    5. 17.5. Strategy 3: Strategic Plan
      1. 17.5.1. Description of the Strategy
      2. 17.5.2. Objective of the Discipline
      3. 17.5.3. Tools Integral to Positive Results
      4. 17.5.4. Rules Associated with the Strategy
      5. 17.5.5. Risk Controls and Assessments
      6. 17.5.6. Creating the Strategy
      7. 17.5.7. Real-World Example
      8. 17.5.8. Potential Pitfalls
    6. 17.6. Strategy 4: Day Trading Strategy
      1. 17.6.1. Description of the Strategy
      2. 17.6.2. Objective of the Discipline
      3. 17.6.3. Tools Integral to Positive Results
      4. 17.6.4. Rules Associated with the Strategy
      5. 17.6.5. Risk Controls and Assessments
      6. 17.6.6. Creating the Strategy
      7. 17.6.7. Real-World Example
      8. 17.6.8. Potential Pitfalls
    7. 17.7. Strategy 5: Swing Trading Strategy
      1. 17.7.1. Description of the Strategy
      2. 17.7.2. Objective of the Discipline
      3. 17.7.3. Tools Integral to Positive Results
      4. 17.7.4. Rules Associated with the Strategy
      5. 17.7.5. Risk Controls and Assessments
      6. 17.7.6. Creating the Strategy
      7. 17.7.7. Real-World Example
      8. 17.7.8. Potential Pitfalls
    8. 17.8. Strategy 6: Lock and Walk Strategy
      1. 17.8.1. Description of the Strategy
      2. 17.8.2. Objective of the Discipline
      3. 17.8.3. Tools Integral to Positive Results
      4. 17.8.4. Rules Associated with the Strategy (Assuming First Hour)
      5. 17.8.5. Risk Controls and Assessments
      6. 17.8.6. Creating the Strategy
      7. 17.8.7. Real-World Example
      8. 17.8.8. Potential Pitfalls
    9. 17.9. Pick a Strategy That Fits
  21. 18. Automated Trading
    1. 18.1. Trend Tracker
    2. 18.2. Integrating the Strategy
    3. 18.3. Using Trend Tracker to Manage Wealth
    4. 18.4. Benefits of Trend Tracker
    5. 18.5. The Process of Using Trend Tracker
    6. 18.6. Keep It Simple with Trend Tracker
  22. 19. A Greater Depression
    1. 19.1. Debt Is a Major Issue
    2. 19.2. What if I Am Wrong?
  23. Final Thoughts: Welcome to the Comfort Zone
  24. A. A Real-Life Example
  25. About the Author