I Pity This Fool

Incredible science... and amazing potential for early investors Thanks to a Nobel-winning scientist, one biotech is teetering on the verge of a massive jump in stock price. Here's why: What its treatments could be capable of is nothing short of extraordinary: Cancer? Gone! Cardiovascular disease? Gone! Hemophilia, Alzheimer's... all could be a thing of the past with this medical breakthrough. Get the details on the scientist, his work, and what it could mean for you, right here. Tuesday, November 4, 2014 | Issue #2410 Thinking Long Pays Off Christopher Rowe, Technical Strategist, The Oxford Club Three years after starting my Wall Street career, the white-haired market veterans began calling me "Little Jacob Little." When I heard this, I was only 21 years old. So I cautiously maintained my respectful smile, chuckled and went about my business. But, secretly, I wondered if I was being praised or dissed. My new name hadn't instilled a drop of confidence in me. And the day that my mentor quietly pulled me to the side to explain who Jacob Little was, I felt both proud and embarrassed. You see, Jacob Little was the dominant figure on Wall Street for about 25 years in the mid-1800s. Known as "the first great speculator," he would bet millions while his peers would bet thousands. He quickly became one of the richest men in America... again and again... enduring several bankruptcies along the way. What makes his story so fascinating - aside from being a pioneer in stock speculation (and manipulation, which was legal back then) - was the frequency and the degree to which he would fail and rebuild his empire. He repeatedly invested everything he had into just a few or even one position. And as many times as he went bankrupt, he would eventually bet big, win big and pay off all of his debts. One famous remark about him was: "Jacob Little's suspended papers were better than the checks of most men." A speculator to the core, Little sold stocks short in the panic of 1837, which earned him the title The Great Bear of Wall Street. Then he earned the title of The Railroad King after making massive, early investments into the railroad construction industry. So how is it, after 25 years of repeating the ultimate comeback story and earning those grandiose titles, that this stock market heavyweight's name was relegated to obscurity? It's because his brazen trades ultimately landed him where everyone with his behavior lands - in the poorhouse. And a few years later he died. Hot New Picks Delivered to You Daily! Despite this year's rough start, our investment analysts are still finding dozens of opportunities every month for their subscribers to score double- and triple-digit gains... And now you can have select plays sent right to your email - every day - for just pennies on the dollar. Click here now to find out more. Why I Was "Little Jacob Little" I first discovered the power of leverage during the dot-com bubble - boy, was that a fun ride. My net worth would multiply tenfold and would then drop 90%. It didn't faze me, as I was earning a healthy living and knew the funds would be replenished. But in a brokerage firm environment where it was all about earned respect, I was embarrassed by my reputation - to the point that I changed my whole style of trading. I had to. Those white-haired Wall Street veterans worked on my firm's trade desk and executed every trade I made. There was no hiding. I changed my ways. That's when I started accumulating real wealth. Instead of plugging so much money into one to three positions, I started diversifying. Instead of buying on Monday and selling no later than Tuesday, I focused on intermediate peaks and valleys to time investments into long-term trends. And today, I implore you to do the same. There are simple market indicators that you can use to keep a cool head during short-term market declines. For example, the simple strategy I told you about in July could have kept you from selling in a panic last month. The reason it pays to focus on long-term trends is a long-term trend is the result of billions or trillions of dollars being invested based on real long-term developments in the global economy. Those developments or trends don't just go away in a couple of weeks or months. They are reliable trends, and you can see them changing from a mile away. Short-term or intermediate-term price moves, while way more exciting, are more random in nature. It's usually just a matter of mispricing of stocks by traders who experience extreme pessimism or extreme optimism combined with technical reasons. One example of this was the Deepwater Horizon oil well accident in 2010. The disaster unfolded in April. That created a climate of fear in the market - and that fear was heightened by a technical glitch in May, prompting a flash crash. View larger image Another memorable example is what occurred back in 1998 when the Russian government defaulted on its bonds. The market was destined for a decline, but it got much worse for simple technical reasons. The default caused huge losses in a highly leveraged hedge fund, Long Term Capital Management (which held arbitrage positions that weren't "long term" at all). After losing more than $4 billion in four months, this $130 billion fund, leveraged 25-to-1, was forced to liquidate, creating an awesome buying opportunity. View larger image The short-term trades are fun and can certainly generate gains as quickly as they can bleed you dry. But the short-term trader is prone to extreme emotion and irrational decisions like overleveraging. Thinking long is the best way to accumulate real wealth, as unexciting as that may sometimes seem. Personally I'd rather be wealthy and boring than trade like I'm in my 20s. At this point, with a wife and two kids, I absolutely must "think long." Because when it's time to drop the curtain and pass your dollars on to your loved ones, you don't want to end up like the guy from the story I've just told. What was his name again? Good investing, Chris P.S. If you'd like my articles to show up in your Facebook newsfeed each Tuesday, you can "Like" my Facebook page. Just click here. Click here to post a comment on InvestmentU.com 3 Easy Ways to Double Your Money on America's Debt Bubble America's debt bubble has ballooned to over $16 trillion. And three companies are raking in huge amounts of cash as a result... from $1.3 billion to more than $40 billion in just one year. The amazing thing: A special law is about to force these companies to pay out 90% of their earnings to investors! Even better, there's still time to get in before the big payouts! And as the debt bubble expands, the money just gets bigger and bigger. To learn all about this unique opportunity, please click here now. Reader Favorites From Investment U Profits Pump Up the $202 Billion Semiconductor Industry by Tom Sandford Tuesday, November 4, 2014 No matter what phone brand resides in your pocket, each contains materials called semiconductors. It's these materials that make it possible to pack so much tech into a palm-sized package. They also make it possible for investors to pack profits into portfolios. Read On... The Secret Winner of Low Oil Prices by Sean Brodrick Monday, November 3, 2014 Crude oil keeps bouncing along around $80 a barrel. We know who low oil prices hurts - producers, drillers and services companies. But there's a secret winner that most of the market doesn't know about - and you can profit from it. Read On... Investment U Plus by Bob Keaveney Tuesday, November 4, 2014 How can you profit today from the kind of irrational emotion that plagues short-term thinkers? Alex Green suggests a company that's on sale for silly reasons, is about to enter its busiest time of the year and pays a respectable dividend. Readers of Investment U's premium edition are learning about it today. Find out how to join them by clicking here. You are receiving this email because you subscribed to Investment U. To unsubscribe from Investment U or to manage your account, click here To cancel by mail or for any other subscription issues, write us at: Investment U Attn: Member Services 105 West Monument Street Baltimore, MD 21201 Keep the emails you value from falling into your spam folder. Whitelist Investment U. Question? Comment? Need help? Contact us here. 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