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As an engineer, I've always been intrigued by airplanes. And why not? Flying machines are mechanical marvels – one of the ultimate achievements of engineering.
And during my professional career as an engineer, entrepreneur, investor, and hedge fund officer – and now, because of my frequent appearances as a TV investment analyst – I've spent a lot of time as an airplane passenger.
What this all means is that I've had lots of conversations with lots of pilots – private, commercial, corporate, and military.
And as a technically minded guy who also appreciates history and the arts, I truly understand how most pilots feel about flying.
There's the science of aviation – meaning the nuts-and-bolts technology of the airplane. Then there's the romance of flight – the freedom of being able to leave the ground and the ability to admire earth's patchwork pattern, which can be done only from the air.
As one of my friends – a gent who has military and private flying experience – once told me, flight training at its most basic level really consists of two pieces.
There's ground school – the book-learning part of flight training.
And then there are the actual, hands-on lessons.
And the two parts are very, very different.
As my buddy explained one time many years ago, the book-learning came quite naturally. My friend is a technically minded guy – much like me. So the study of a technical subject like this was simple, even fun.
Then came the time for him to jump into a cockpit, to learn to actually fly a plane.
"Intellectually, because of my ground school studies, I 'knew' everything I needed to know to be an accomplished pilot," I remember my friend telling me. "I knew all about the pre-flight check, the radio procedures, aerial navigation, and exactly what all those dials, switches, and knobs on the instrument panel before me were supposed to do. But I needed to develop a completely separate – completely new – set of skills to bring the aircraft to life, to send it down the runway, to lift it into the sky … and to fly it successfully and safely once I was airborne. I needed to develop a 'touch' … instincts … and confidence in what I was doing. It took time. And I made mistakes. But my studies had been a good preparation. I didn't take unneeded risks. I got better … then I got even better. One day … I realized … I loved what I was doing. Truly loved it."
There's a reason why I'm telling you this story today…
It's a lot like what you'll need to do to become a successful 10-Minute Millionaire.
You need to finish ground school. Then you'll be able to get into the cockpit and develop the instincts that will let you navigate the markets, fly your trades, and go wherever you wish to.
And just as my friend learned to love flying, you'll learn to love trading.
Especially when you see how fat your portfolio gets.
So let's get you cleared for takeoff…
Navigating Your Way
Identifying extreme stocks – shares whose prices have been overstretched to the upside or to the downside – really is a lot like flying a small plane.
You've got a great vantage point at a high altitude, looking down, which gives you the ability to see a long way in every direction. You can pick out identifying landmarks that let you know exactly where you are in the price cycle that extreme stocks go through.
It sounds like a pleasant journey. And it can be.
But it can also be quite disconcerting – for, at times, there's an awful lot going on.
I mean, you're often buffeted by strong winds… you have to watch your fuel consumption and your oil pressure… you can't forget about your compass headings… and you must be vigilant – your eyes must constantly sweep the skies around to watch out for other aircraft.
Forget about any of those things and, well, you're in trouble.
The same is true of trading. There are buffeting headwinds (currencies, interest rates, or bad news surprises) and helpful tailwinds (upside earnings surprises, central bank rate cuts). There are other travelers in your air space (bearish investors and opportunistic short sellers) – all of whom you must watch out for.
You have to watch your oil pressure (amount at risk) and fuel situation (total available capital). And your compass headings (whether you are long or short on a trade). You must be mindful of your flight time (for example, the expiration dates on your options contracts). And you want to know where you're going (your short-term, intermediate-term, and long-term financial goals).
Once again, forget about any of those things and you've got yourself a problem.
Trading is like flying in another way, too: The higher you fly, the tougher it is to identify things down on the ground.
And given the fact that there are more than 45,000 stocks trading on exchanges worldwide, picking out the few that are experiencing trading extremes at any given moment can be challenging.
Just think of it this way: If each of those 45,000 stocks were one person, we'd be able to fill Alumni Stadium at Boston College to standing-room-only capacity.
That's a lot of stocks.
Way too many to study with any real precision.
Heck, if you spent just 15 seconds screening each of those stocks – hardly enough to get a real sense of its worth, upside, and risk – it would take a month's worth of nonstop, 40-hour workweeks.
By that time – given how fast markets move these days – whatever you learned about the stocks you studied at the beginning of that stretch would be long out of date.
Let's say we cut things down a bit and limited our search to the 3,700 U.S.-listed stocks.
Even that minimalist 15-second screening regimen would still have us poring through stock charts and research reports for a solid two days, and once again we'd probably fail in our attempt to zero in on the most promising profit candidates.
Such a cursory screening process is insanely risky… and is hardly the 10-Minute Millionaire way.
Naturally, there's a solution.
A good one.
Like the combat planes of the modern military, we can employ technology to serve as a targeting system.
And this targeting system allows us to identify the stocks that are capable of explosive moves-stocks that are able to move the fastest… or climb the highest… from their current spot.
In the military, aircraft that are capable of such explosive surges, of that kind of blinding acceleration… that can achieve such extreme altitudes, are known as "fast movers."
And when we apply that same mentality to trading, those fast movers are exactly the kind of millionaire-making opportunities we target here.
Here's what I mean…
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.