Buy and Hold Is Dead: How to Make Money and Control Risk in Any Market

Chapter 13. Every Day Is a Tuesday

Officially, our tools section has begun. We have already defined emotional conditioning, and we have already begun to dispel common misperceptions. Appropriately, we have also introduced a longer-term tool in our return to parity analysis as well. We always start with a broad understanding of current and future economic conditions because it helps further our purpose. By initial observation, the next logical step in our process might seem to be to introduce the traditional tools I use every day. However, there is a better approach. In fact, I have already used this approach once in this book. When I first introduced the Investment Rate, I also revealed the concept by first explaining how it was used. Afterwards, I detailed the underpinnings of the strategy. More often, this is the most effective method of introducing new strategies. Therefore, with the assumption that proactive strategies will be a relatively new resource for many investors, I will use the same approach here.

Before I detail our traditional tools, an outline is warranted first. Patterned discipline recurs throughout my daily routine. Whether it is my daily analysis, Boot Camp, or articles and media relationships, I always start the same way, and I always end the same way. More specifically, my form is internally dynamic, with Chaos-like boundaries instead. The consistency is proven, productive, and results driven, so I will pass it along here. The result will provide a structure ...