Gary Halbert · whole document (80)
zflk blitzkrieg paradigm
Those are the two extremes: The long-term
investor and the day-traders. Then, there's the vast middle
area of investors who trade a few times a month, based on the
advice of their brokers (none of whom understand the stock
market), advice they get from magazines, newsletters,
newspapers, friends, relatives and so on. Financially
speaking, this is sort of like "dabbling" in brain
surgery as a part-time hobby.
None of these mindsets work for me.
What I want is to invest in only those stocks which
offer me a legitimate chance of going up 50%
or more in one day... and... I want to do it in
such a way that I myself, can legally do something which will make it likely to happen. Do you think it would be difficult to figure out
how to do this?
Actually, it was a piece of cake.
Here's a true story which'll help you
understand the first part of it: My second wife Nancy and I
once spent weeks analyzing all the data for five years' worth
of races at the Ascot Racetrack in Northeastern Ohio. (I think
it's gone now.) We did a "mathematical regression
analysis." In other words, we worked backwards
to find out what factors were most influential in determining
whether a horse was likely to be a winner in any particular
race. Then, we had to determine which factors indicated
whether we should or should not place a bet on any certain
horse.
The results were surprising. You know what the
first thing you should handicap is, if you want to make a
living betting on horse races? Aw, you'd never
figure it out for yourself so I'll just go ahead and tell you:
The First Thing You Want
To Handicap Is The "Crowd"
That Attends The Different Racetracks!
What you want is, to place your bets at a
track with the highest percentage of people who are illiterate
about horse racing. How do you find this out? Easy. You just
study the Racing Form and find out which tracks have the lowest
percentage of favorites who win races.