Introduction- Hello everyone! This is going to be my first journal on EliteTrader. The purpose of this journal is not so much to tell you about my trades, but to expound on thoughts, share ideas and learn from others. No matter how young or old, how experienced or inexperienced, how educated or uneducated, you can always learn new ideas. Who will have the next latest and greatest idea is the question? Will it be the man who just left state prison or the man who just graduated Harvard? Will it be the 50 year old trader who has 30 years of market experience or will it be the homeless man on the corner? Hehe. We simply dont know who will have the next best idea. So all ideas are welcome here no matter who you might be. I want to start off by presenting to you what I believe to be the greatest way to make money off of the market. That very ideal is common knowledge to some of us. That one ideal I speak of is fear. If you travel along the FDR in lower-mid manhattan, you might happen to look across the way and observe what appears to be a castle in ruins. This isnt a castle, however, but a hospital that was built during the civil war era to care for small pox patients. This hospital is located on Roosevelt Island and was not always connected with a bridge. The island was used to isolate smallpox (and other disease laden) patients from the rest of the city over a hundred years ago. http://www.hoursofdarkness.com/Renwick_Smallpox_Hospital/Renwick_Smallpox_Hospital.htm Eventually, the diseases that plaqued the city were contained and the hospital became obsolete. It was a gorgeous hospital indeed, so why did they let this great building become such a ruin? There are buildings just as old in the city that have been carefully preserved. The main reason is FEAR. Of course, you cant catch any diseases by going over to the ruins, but it is the fear of disease that keeps everyone away. It is this same unreasonable FEAR that keeps a good stock down. Companies like Yahoo and American Airlines were much better opportunities then Google ever was. Now you might be laughing by now and saying that how can these troubled companies possibly be better then Google? In 2002, Yahoo was trading at an adjusted close of 4-5 dollars on a daily basis. http://finance.yahoo.com/q/hp?s=YHOO&a=03&b=12&c=1996&d=08&e=29&f=2002&g=d American Airlines was trading at under 2 dollars at some points in 2003. http://finance.yahoo.com/q/hp?s=AMR&a=00&b=2&c=1980&d=02&e=29&f=2003&g=d Look at where both these companies are trading today. $25 and $33 respectively. So why didnt you buy $1000-5000 in shares back when these stocks were trading at such lows? I mean, you lose that much on a single daytrade daily or weekly? You lose that much on a bad options play? The reason why you didnt invest a minimal amount of cash back in the day was FEAR. However, a few other smart investors bought in using just a few thousand dollars of cash. They turned $2000 into $33000 for American Airlines. Now I will tell you the greatest way to lose money in the market, GREED. Greed pushes you to make risky trades. You logic to yourself that your not a millionaire so you must engage in the riskiest strategies possible. When you see a profit on the screen, you reason to yourself that the stock will go higher. Oh, how many times have I seen a profit and not taken it only to realize a loss later on. I was simply too greedy. If I had taken the profit, then I could have moved on from there that much wealthier, but I ended up taking a loss. Believe me, there are many such transactions that are up on my WALL OF SHAME. Its a cork bulletin board that I have erected where I place all my screwups. Not only do I get to view the wall, but everyone else gets to view it too. Its so I will never forget and serves as punishment for stupidity. These are the basics behind making and losing money. Fear and Greed. You must respect these two words highly. Capitalize them when you type them. They are how we make (and lose) our money from day to day. Just a disclaimer, I am not saying to roll all your cash into a scary situation like American Airlines. No, that would be Stupidity. (Another concept that we will address as I go along that also must be capitalized). Nor am I saying you must pile out of a stock because it just went up 10 cents. The concepts of Greed and Fear must be followed with an educated learned skilled approach. They are not neccasarily supposed to be followed quite literally. On the other hand, what would it hurt to roll a token amount of cash into the scary situation? The downside of investing $2000 into scary AMR would be $2000, the upside would have been $33000. Your perfectly willing to throw money away at some chick you just met who you hardly know, now why wouldnt you throw a token amount at the scary airlines? You can only lose with the chick where as it can go both ways with scary air. As we progress forward, I will be making several different entries on stocks or philosophies or whatever. Hopefully, someone might learn something from this. Hopefully, I might learn something too. Unlike other people who troll on the internet spouting nonsense, I am willing to meet up on Friday at my usual happy hour destination to discuss strategies. I'll even bring my laptop and aircard. My usual place is Ulysses at 95 Pearl Street in the NYC financial district on Friday right after 5pm. Cheap beer, lots of chicks. $15 parking if you arrive after 4pm. Free parking up front if you can get a space. All the receptionists from the big companies get off and meet up with beers in their hands. Lots of big wigs in suits from the various firms. Hey, I like it. Everyone should come down because this is the only way to make connections. Connections help you move up in life and give you ideas. I welcome everyone to the happy hour because we simply dont know who will have the next best idea. Sam Walton came from a depression era poor family and his first job was at Penny's. The CEO of Starbucks grew up in a housing project on Staten Island. Donald Trump first job was in his Dads old unimpressive office in Queens. If you think you have the idea, then bring it on. So now we move forward with the first edition of the Wizard of Wall Street. Hehe. Originally, I thought I would just call this Strategy Lab, but I thought it too plain and no one would read it. The Wizard of Wall Street it is. . .