Your source for overpriced stocks

Before I jumped for the first time into the trading arena, I armed myself with what I thought was enough knowledge to "fight" against the statistical fact that most market participants lose money. Curiously, I began making money with my very first trades, often catching major moves, some massive short-term gains, consistent small gains and only a few hit stops. Suddenly, I not only stopped making money, but began failing dramatically and watched both my gains and my original capital vanish into thin air. I experienced almost any conceivable way to lose money… and even some new, unconceivable ways! Market knowledge was not sufficient.

Overlooking stops, and fighting against the trend trying to "prove" I was always right, were my most frequent mistakes. After my initial winning streak, I had the wrong perception that, when properly prepared, traders could be right most of the time. I needed more discipline.

Further attempts to be a successful trader increased my knowledge in technical analysis, fundamental analysis and market psychology, and also kept my discipline at reasonable levels. I stopped overtrading and added more fundamental criteria to pick stocks, in order to maximize my gains on position trades and long-term investments. Again, the "experiment" was a dramatic success:  After a solid research and well-planned entries, I made an overall 108% percent gain in the first 8 weeks, thus "proving" I was well prepared this time. Then, I became overconfident, and an unexpected losing streak erased all my gains in a few weeks. Since all my positions were fundamentally-supported, and I was focused on value growth stocks, I could not understand why the market was "punishing" me with its outrageous irrationality. I found out it wasn’t the market, it was me. The mistake: Trading on maximum margin, accepting more risk that the appropriate level for my cash backup, and not using proper risk control measures.

I finally learned that a win is not always a win and a loss is not always a loss. With my wins I lost part of my discipline and gained some undesirable pride. My losses taught me more valuable lessons.

Before you trade or invest with real money, I strongly recommend you do it on paper and

1. Test your market knowledge

2. Train your discipline, and

3. Learn how to keep risk at an acceptable level.

This is a practical website. I have used all the information it contains to build a profitable approach… yes, with real money and after losing a big chunk of it. Why then am I willing to share all this information, along with my "short picks"? Because my side is almost risk-free.  My only commitment is to provide you the best tools I have, and help you improve your investing and trading strategies. I will not trade the stocks I follow, in order to keep my analyses totally unbiased.

But yours will be a harder challenge: To develop the proper behavior and the winning mindset needed to be a successful market participant.

I wish you the best.  Sincerely, 

Varlin