Don't Let Wall Street Steal Your Money

The financial markets on Wall Street are a sucker's game. You need to know how to play according the unwritten rules of some of the richest financiers in our country. You won't find these rules in a book somewhere, but if you read this article you will know the 4 biggest ideas to make a profit in these shark invested waters of Wall Street.

Never Ever Buy Stock and Hold It!

The biggest mistake that you can make is the game of buy and hold. You play this game by buying a stock and holding it long-term. Sure I know everyone from Warren Buffet to Mickey Mouse will tell you that long-term investments held for multiple years is the way to riches.

I can tell you from experience as both a long-term investor and a stockbroker that this advice will cause you to go bust quicker then a Ponzi scheme.

The reason this theory doesn't work? Because the elephant herd will trample it to death in the wake of short-term profits. In other words institutional investors will play the swings until some major news comes along that will cause them to use flash programs to unload a huge pile of stock on the market which will have the impact of an asteroid hitting New York wiping out any and all long-term gains in its way. At the same time they will make huge profits protected by our out dated tax laws.

Buy Only for Short-Term Profits of 3-6%

If you are buying only to make short-term profits of 3-6%, the elephant herd in search of short-term profits will never trample you.

Who are the elephant herds? The millions of unsuspecting investors who do not understand this game and are panicing along with huge institutional investors such as mutual funds, insurance companies and stock houses including hedge funds who do understand and are reaping huge rewards.

They make their living off short-term profits to make their rich clients even richer. This is why the mutual funds have a different fee for each day of the week. Who gets discounted fees? Large clients of course. This playing field is definitely not level unless you know about short-term gains.

As time goes on one short-term gain after another builds and builds until you have a huge annual return around 20-27%. So when you invest buy for short-term profits only.

Buy Low on Dips of 3% or more and Sell on Ensuing Rallies of 3% or more

The rallying call of Wall Street is any profit is a good profit. Why? Because they add up quickly when you are investing millions. Hell you can influence the daily direction of stocks by just placing large buy or sell orders that influence the markets drastically.

I like plus or minus 3% because it keeps me ahead of the institutional guys and allows me to make a profit and get out before the elephants come trampling through. By buying and selling quickly using large sums of cash I am in and out before the market catches up with me.

One of my favorite trades over the last year has been Apple Computers. I started buying and selling it at $155 and now it's over $300 and I am still making short-term profits with very little in losses.

Never Ever Listen to the Experts on Television- they are the Pied Pipers of Wall Street

Financial experts appear on television to promote certain stocks they own for their benefit not yours. You will never make a profit listening to them. They are paid based on what they make for their clients and if they told you the truth they wouldn't be able to make the big profits they do and the money would flow the wrong way. Don't believe me ask a professional trader some time what their contracts say as to how they get paid. Or just pick up a Jim Cramer book like "Confessions of a Street Addict". It will open your eyes.

Well these are the new rules of Wall Street. Ignore them at your financial peril.