The strength in the stock market has a lot to do with the current surging economy and stock market.
But…
There are forces working against our economy that could bring it crashing down around us at any moment.
China is constantly trying to dethrone the U.S. dollar as the world’s preferred currency…
Interest rates have been tapped for a hike…
Scandals happening all over Washington…
All of these things are contributing to the delicate balance that has become the U.S. economy – but all of these pale in comparison to the ONE simple thing that I believe could topple our current run quicker than all of the others combined.
The worst part? It’s unavoidable. This is going to happen no matter what we do…
But that doesn’t mean we can’t prepare for the event – and here’s how we do it.
Now, as bad as everything COULD be with China hot on our heels, interest rates on the rise, and problems throughout DC…
The thing that I believe is the biggest enemy to the U.S. economy comes down to one word…
Overvalued.
The mere mention of the word on Wall Street can bring teeth together in worry and cause hairs to bristle.
But let’s face it – there are many companies being actively traded right now that don’t really have the assets or volume of business to justify their current value.
Many of these companies’ stock prices are overinflated by a frenzied market or a false sense of demand – the problem is – it can be difficult to separate the stocks that hold REAL value and those that are expensive for the sake of being expensive.
Figuring out which stocks have true value is relatively easy to do…
A few basic searches will tell you everything you need to know about almost any publicly traded company with just a few simple keystrokes.
However, on the flipside…
It can be more difficult to determine if a company is undervalued.
In my time, I’ve seen stocks that have had everything going for them – huge demand, quality product or service, great business plan, etc. – yet still, shares not only seemed undervalued, they were pretty much stagnant.
When I first got into this business – one of my mentors gave me this little adage to think about whenever trying to predict which direction a stock would move,
“This business is 50% science, and 50% magic.”
Meaning this…
A company could have EVERYTHING it would ever need to not only be successful – but have the makings of a “super stock,” where it would have the ability (if not the opportunity) to make people rich – yet it does nothing.
Or worse – it loses money.
Conversely, I’ve seen stocks that had absolutely nothing going for them – terrible ideas, no assets, no direction – yet these stocks have gone through the roof!
Meaning all the data and science were there to make the stock a winner – yet nothing ever materialized.
Both of these scenarios are a kind of magic…
However, there are ways to stack the deck in our favor. We can take that “50% science, and 50% magic” and whittle the odds down to “75% science, and 25% magic”.
You see, when I first developed the GorillaTrades system – this was the biggest thing I wanted to address.
I knew that if I was going to be successful – I needed to find a way to take as much “chance” out of the equation as I could – which is how I came up with the GorillaTrades trading matrix.
The first thing I had to do was relinquish control.
What I mean by that is, before GorillaTrades, I would sometimes go with my “gut” or “feelings” on a stock.
With the GorillaTrades System, I couldn’t do that anymore. I had to trust the system. I had to trust that the matrix that I had created would do the work that I needed it to do… magic be damned.
So, instead of looking at a recommendation that came out of the matrix and thinking, “uh, this doesn’t look good” or “this looks so good, I may do away with my price points altogether” – I would just take a deep breath and trust the system that I created would work.
Now, I’m not saying some of that “magic” hasn’t happened since I’ve started GorillaTrades…
I’ve seen some stocks go through the stratosphere after meeting all of the key technical indicators of the GorillaTrades trading matrix, without any real fundamentals to back it up…
And vice versa.
However, what I’ve found over the years is – if I trust the system – more often than not, I’ll come out on top.
Which is why GorillaTrades has become one of the most talked about, and trusted trading systems in the world.
The best part?
The tight price points and stop losses help mitigate and protect us from any of the losses that a massive price correction can create when stocks become overvalued…
Because we are not emotionally attached to these stocks.
They come, they go. Some stay longer than others – while others could be gone in a flash…
We simply trust the system. It’s actually much more freeing than you’d ever imagine.
“Knowledge is of no value unless you put it into practice.” – Anton Chekhov
