A quick update on our premium stock plays for 2021:

We sent out a stock in January at $16, doubled down on it at $30 and it is currently sitting at $51 in one month. $1,600 would be worth $5,100 in one month.

We sent out another play at 95 cents last year, doubled down on February 1st at $17 and it currently sits at $47. $950 would be worth $47,000 in 6 months time!

We keep our stock plays at only $10 a month because we are here to help people make money. I believe this is the best $10, you can spend besides Netflix.

Dear Investors,

Investing/Trading is 75% emotions, 15% timing based off emotions, and 10% numbers. Once you come up with a winning formula, the hardest part about stocks is emotions. I was having a conversation with someone who I believe has a brilliant mind and that I respect deeply. They said to me that they believed they wouldn’t be a good investor because they are not very good with numbers. However, they work in the psychology field and have a great understanding of emotion. In my opinion, this is the greatest quality of a great trader or investor.

 

What do I mean? When investors are losing or making a lot of money, they turn into irrational thinkers. In the 1970s, two psychologists proved, once and for all, that humans are not rational creatures. Daniel Kahneman and Amos Tversky discovered “cognitive biases,” showing that that humans systematically make choices that defy clear logic especially in times of stress or chaos. The great things about humans is that we have the ability to control our irrational thinking.

 

How does this affect investing? Whenever the stock market starts to crash or your individual stock starts to take a hit, what do you do? You start to panic and you think about selling. Why? Your thought process turns irrational.

Let’s say that you bought your dream house for $500,000. The house is valued at $750,000 and you got it for a STEAL because someone needed cash quick.

On Monday Morning at 9:31 a.m., someone comes banging on your door and starts screaming and shouting at you to sell your house RIGHT NOW for $300,000.

Would you sell it? Hell no! You have to remember that this is the same thing with the stock market, you are buying from someone who is selling and selling to someone who is buying. Do not panic sell.

I am a contrarian investor. You know that guy who is trying to buy your house that is valued at $750,000 for $300,000? This is what I pride myself on doing, I LOVE buying on Red days. If you can adjust your mindset to looking for buying opportunities on red days, then you will make tons of money in this game. You have to have PAYtience.

Remember, you are buying something from someone who is selling or selling to someone who is buying. What do they know that you do not?

One of my favorite quotes is: “buy when there is blood in the streets, even if the blood is in your own.”

What does this mean? In modern terms:

“When shit hits the fan on the market, get your emotions in check and start buying.”- Matt Allen

Imagine buying real estate in 2008. EVERYONE WOULD HAVE CALLED YOU CRAZY until they see you in the new range rover.

The stock market is no different.

Stay Hungry, Stay Long,

Matt Allen

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