Editor's Note: D.R.'s 10-Minute Millionaire readers mainly play three kinds of special events he finds – events that happen all the time, almost everywhere in the markets. You can get his free research yourself, delivered right to your inbox three times a week. Just click here. Now, here's D.R. with one of the most powerful extremes there is…
We've seen time… and time… and time again just how large a part human emotion plays in big market moves.
Whether it's classic Greenspan-ian "irrational exuberance" at market tops, bidding up everything from tulip bulbs to dot-com stocks, or – less so these days – despair that catches like wildfire, sending otherwise perfectly sound stocks plummeting with no business case for them to do so.
In other words, emotions drive financial markets (and, importantly, the individual securities on them) "out of whack" – sometimes severely so.
This emotion drives investors to make bad, if not disastrous, decisions, gleefully overpaying at tops and selling at a long-term loss at bottoms.
Nevertheless, if you can hold your nerve, keep a proper perspective, and not go along with the crowd, you'll find that there's massive upside in these extreme situations – especially the one I'm going to show you.
Now, these aren't just rare opportunities. You can find these extremes everywhere in the market, at just about any time.
They show up in broad indexes… specific market sectors… individual stocks and bonds…
And each one is a huge opportunity…
How to Play an "Extreme Continuation" Event
Now, to many investors, filtering through the hundreds of extremes that appear in the market every day may seem like an insurmountable challenge.
Radical "Wealth Experiment": Dozens of participants act on opportunities to make piles of money in days, weeks, sometimes hours. Click here for the stories…
There's that emotion again…
But I'm going to let you in on a little secret: The one you've really got to watch out for with "dry powder" is easy to spot.
Join the conversation. Click here to jump to comments…
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.
Hi D.R. Barton, JR.
My name is Jack.