Have you ever been called dumb money before? If you have spent any time in our chat and mentioned how Bitcoin was going to $100,000 or that some penny stock was going to become the next best thing since sliced bread, then without a doubt you have been called dumb money, and rightfully so. However that is not a bad thing, we all start out as dumb money. Every single trader and investor on this planet, even legends like Bill Ackman or Carl Icahn have made dumb money mistakes. Even after you become smart money, you can still make dumb money mistakes if you don’t check your ego from time to time.
“New investors tend to arrive just as the party's winding down, they miss out on all the gains and take part in all the losses.”
If you were not aware, Bill Ackman had a multibillion dollar position in VRX, that’s billion with a B. He looked like a wizard for years as VRX climbed and climbed putting in new highs, acquiring company after company. VRX and Ackman looked unstoppable however there were a ton of shady back door deals going on inside the company that virtually bankrupted the company as you can see from the 90% drop in less than a year. There's a great special on Netflix titled ‘Dirty Money’ that breaks down the VRX scam. So yes, even a billionaire can make the same dumb money mistakes new traders make each and every day. Forgetting the simple rules of trading, you need to sell to make a profit, never turn a winner into a loser, and when you hear yourself saying “this time is different’, it is not, it's the same as always you're just too dumb to see it, yet.
To invest and trade you need enthusiasm. We’re only on page 2 and we’ve called you dumb half a dozen times, so if you’re still reading, you’re on the right track! Enthusiasm is an essential ingredient required to become successful regardless of the situation. You will need it when reading through this program as we will go over topics that are often brushed under the rug. Why are they brushed under the rug though? Well who really wants to expose all the dumb shit they do on a daily basis? Dumb money is a simple term, put simply it’s poor decision making. Shit, we make dumb money mistakes all the time, as does any trader and we will go over them as we work through this program.
Our mission is to turn you from dumb money to semi smart money as effectively as possible. We said ‘semi’ smart for a reason, although we are pretty confident at what we do, we don’t have all the secrets and don’t claim to know everything. We master and perfect a very limited tool belt, it is up to you to become smart money, we are just here to nudge you in the right direction.
(Also don't call yourself smart money, if you do look up at exhibit A.)
Our goal is to keep you safe from unnecessary losses and help you to avoid some of the hundreds if not thousands of costly mistakes we have already made. Trust me, with 16+ combined years of trading we have made a lot of them! Think of something you excel at, did you become a master at it overnight? Of course not, you didn't learn how to surf that 12 foot barrel in Hawaii, or how to bench 400 pounds, or ‘insert any other impressive skills’ day 1. It took time, practice, repetition, getting knocked down, asking for help, learning from others etc.
“Philosophers warn us not to be satisfied with mere learning, but to add practice and training. For as time passes we forget what we learned and end up doing the opposite, and hold opinions the opposite of what we should.”
For some weird reason when it comes to investing, the more novice one is the more they act like they are the experts. The market will call you stupid every day of the week, day in and day out while you let Mr. Market dig deep into your pockets. Either we can tell you it's stupid or the market can take your money. The choice is yours.
If you’re ready to embrace learning from stupidity, keep your eyes wide open and your hands inside the vehicle at all times because we are about to go on one bumpy fucking ride. If you are already offended at being called dumb a dozen plus times, then close out this program, leave our group chat and call your mommy to tell her how the real world is a lot meaner than she told you it was going to be. Now that we’ve cleared out 90% of the riff raff let's get down to business, your first ‘do you have balls’ assignment is below!
“If you don't ask, you'll never know.”
Do you have balls?
In the Group Chat, explain a time when you were dumb money however in the moment you thought it was the best idea ever, only to realize after the fact how blatantly stupid it was (does not have to be specific toward investing).