R.I.P. Maggie the Kelpie
Richard, one of my readers, recently sent an email…
How can you recommend an iShares Silver Trust (SLV) purchase in light of the news about European banks conspiring to fix the price of gold and silver?
I also saw this headline hit the newswires:
“Maggie the Kelpie, thought to be the world’s oldest dog, dies at age 30.”
Believe it or not, the old dead dog story will help you make as much money as the story Richard saw about gold and silver manipulation.
How to Eat Spam in Retirement
I’ve heard this story of gold and silver manipulation for decades.
It may or may not be true.
No one can know if banks are manipulating the price of gold or silver.
But if they are… how can you tell when they’re going to push metal prices up or down?
If they are manipulating gold and silver to keep the price low, how can you explain a raging bull market in metals from 2002 to 2011?
And if they want the price low now, why are both gold and silver up big this year?
Since I recommended SLV last Monday shares have already jumped 5%.
My point is…
Stories of gold and silver manipulation make for interesting cocktail party chatter.
But they won’t make you money. Period. They’re much more likely to drive you insane or help you lose money.
If you think investing on news is a good path to riches, I guarantee you’ll spend your retirement years eating Spam. No knock on Spam, but let’s get real. We can all do better for dinner.
Forget the Outcome… Focus on the Process
News junkies think their trivial pursuit chase of the latest tidbit of knowledge will help predict a trade or event outcome.
Instead of dreaming about the wonderful outcome, i.e. the new house, car, vacation, you should focus on the right process to get to your goal.
Once you have a good process, you let the chips fall where they may.
If you have a good, proven process, the outcome will take care of itself. And your chances of reward will go up big time.
In fact, the best long-term performers in trend following trading all emphasize their process over outcome.
And that’s what I am doing with our proprietary system. We have our rules in place.
The system, the rules—that’s the process.
And when the system tells us to buy SLV, we follow the signal.
Not because we know silver will go higher… or because we don’t think banks are manipulating precious metals.
But simply because we know this is a time-tested, disciplined trend following process that leads to gains over the long run.
I recently talked about this process vs. outcome idea in my podcast.
In this episode, you’ll learn…
- The tragic event that made me realize, when I was just 17, that drugs are a bad idea.
- A great lesson from Boston Celtics coach Brad Stevens (even if you’re not a basketball fan, this could make you a better trader).
- Why process is much more important than the outcome… in trading and in life.
- And much more.
Please send your feedback to firstname.lastname@example.org. I’d love to hear your thoughts.