Are you finding every opportunity available to you?  Is an opportunity available to you that you are not seeing?  Are you creating opportunities where there may not seem to be one?  Could circumstances be blurring your vision?  Are you at the mercy of market conditions?  Whatever market you may be in,  I ask those questions to provoke thought.  As you can see this week’s post is going to be different.  I’m not going to go over my trading activity like usual.  I really want to dig in to the THOUGHT behind what you DO to make money.

I believe that as entrepreneurs, we all have the mandate to identify opportunities to take our business to the next level.  Too often we lack the vision to identify them.  We focus on one way of doing things and limit ourselves in the process, which leads to unfavorable circumstances for our business.  If you’re wondering, I wholeheartedly believe that we create our own circumstance.  But I digress, this one dimensional way of thinking leads to throwing our hands up and saying it is what it is when presented with a second dimension.  Which all eventually leads to the ultimate dream killer and business breaker.  The VICTIM mentality!!!  It sounds like this, “The market/situation/circumstance is what it is.”  “I can’t do anything about it, etc.”

So how do you identify those opportunities so you don’t end up being a VICTIM?  I’ll attempt to address it in the way I’ve done it.  Before I start, I will say that in typical IM fashion, this is very simplistic.  Because, well there is no need to over complicate.  So without further delay, here it goes:

  • Research – Know your market inside and out.  Understand how it moves and how it cycles in and out of different market conditions.  Consider all external factors that affect your market such as economic and political factors.  What ever that is in your market.  Finally make sure you have a plan to manage risk.  So debate all risk and define you risk tolerance up front.
  • Analyze – Break down you research into manageable pieces.  Too often people get analysis paralysis and bail before they even start.  By working with manageable pieces, it makes it easier to identify areas you can manipulate for profit.  This may take some time to sort through all the data to get a game plan.  So be patient.  You may not see it in the beginning, but stay after it and you will.
  • Test – Ask yourself, how would this “opportunity” look had I applied it.  Factor in different environments.  Put it through the wringer.  Model the data.  Manipulate the data.  Break your logic.  Play devil’s advocate.  Pick it apart.  You get the idea.  If it is still passing all the tests you have no choice but to move.
  • Capitalize – By virtue of committing to the first 3 steps, most of your plan will be laid out.  So put the finishing touches on the implementation and get ready to LAUNCH!!!  At this point there is no going back so don’t be scared and put the plan into action.  I do however have a warning.  Soon after you start you very likely will get rocked.  So persevere through it and I’m sure the money will come.

If you’re wondering how this ties in to what I’m doing, let me break it down for you.  Look at how the market has been acting.  Crazy!!! Right?  Are you going to stick to your guns and just watch your account shrink?  (If you’re not a day/swing trader plug in how that looks for you)  Or are you going to sniff out the opportunity that this kind of market presents?  In this case for me it’s making money in a down market, which I have been very transparent about.  But…

This isn’t rocket science.  I know this because I’m saying it and you’ve seen how things have gone for me.  What I do know is the market goes up and it goes DOWN.  Earth-shattering right?  So why would anybody limit the profit opportunities to one side of the market?  Ignorace.  Fear, perhaps.  Again, I speak from experience.  For me I went in to Friday in cash so I didn’t have to take a hit when the market opened.  More importantly, shorting opportunities were in abundance on Friday.  I actually made some money, and had I managed my stops better I would have made a killing.  That’ll have to be something I grow into so stay tuned.  But what I’m saying here is that while people are losing their shirt, there is still the opportunity to profit.  Opportunities are ALWAYS there!

In conclusion, outside of the stock market, some people may not fully understand the concept of making money in a down market.  But once you break it down, they marvel at the possibilities.  So what is the equivalent in your grind?  Is there something completely against conventional thinking that you’ve written off that could be the very thing that will make you rich?  That’s for you to figure out.  All I’m trying to do is open that pathway of thought.  So I hope you enjoyed the change of pace.  Don’t hesitate to share your thoughts.  I’d love to hear what you think of this.  Until then make sure to make money this week no matter what curve the week throws at you.

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