I have never talked about the stock market and I doubt I ever will again, unless I decide to write a follow-up article some time in the future. This article is also not about the stock market but about intuition and how to use intuition to invest in the stock market as a person who doesn't know the slightest bit about it. You see, over the past few weeks I've opened my coaching practice due to COVID-19, to help people with job loss, fear, and things of that nature. Usually my coaching sessions concentrate on personal and professional re-invention, EFT and Dowsing sessions, or doing 1-on-1 sessions about helping people expand their intuition, specially how to do “Blind Readings.” As a test of my own intuition I decided to put some money into the stock market and using only my intuition to see how I would do. Below is the outcome and the conclusion of this experiment, including screenshots.
1. I added $4,000 into an TD Ameritrade account on May 5th, 2020 and invested a total of $4,178.35.*
2. I bought and sold all but two of my stocks by May 21st, 2020, for a final profit of 9.48% ($396,24), which would represent a yearly return of 246.56%. Today is May 23, 2020.
3. During these two weeks I bought and sold the same stocks over and over, depending on the market.
4. There are a total of 12 stocks in this experiment. Two of the stocks I am still holding onto because the value of these stocks have gone down. Rather than selling at a loss I am sensing to to hold on to these two stocks.
5. Each time when I sold a stock a tiny commission fee was deducted. I did not deduct these fees from the final gain because the amounts were so tiny. I also received some dividend payments, which are not included in the gains, although they probably should be. I didn't count them because they had nothing to do with intuition on how I selected the stock to begin with. These dividends were simply an added bonus.
6. I know absolutely nothing about the stock market, its language, or even how to go about buying or selling stock. I had to called TDAmeritrade three times just to figure out what tabs to click to find the information I was looking for.
7. I used 100% intuition to select my stocks and did not do any research on any of the stocks except getting the company name and the industry they cover.
*Although I invested $4,000, I actually purchased stocks for $4,178.35. I didn't know how this was possible but TDAmeritrade explained that I was able to invest over my actual balance added to the account because I have what's called a Margin account, instead of a Cash account. I didn't know what this is but he explained that basically TDAmeritrade is allowing me to borrow money to invest, for which I have to pay 9% yearly. Clearly, borrowing money from Ameritrade at 9% means that I would have to earn at least 9% yearly in order to just pay back my borrowed funds. Not what I had planned at all. Hence, why I quickly sold that additional overage.
Now that you know the starting facts, let's look at what happened.
LEGAL DISCLAIMER: It goes without saying that this article is not intended to be financial or legal advice. In fact, I do not advise investing in the stock market at all unless you are willing to lose your entire principal investment. Please do not use your intuition to invest in the stock market, unless your intuition is well-trained and you have a solid track record. Instead, use sound advice from a licensed financial advisor and use your common sense when making any investments, especially investments in the stock market. This article is a snippet of my personal experience of using ‘Blind Readings' to investing in something I knew nothing about, which is what ‘Blind Readings' are all about. The core of this article is about intuition, not about the stock market.
MY INVESTMENT CRITERIA
Since I didn't know anything about the stock market, and frankly still don't know anything about it, I first came up with a set of criteria. Call them personal guidelines:
1. Let it go. Whatever amount I invest I let it go permanently. This meant that I could only invest an amount that would not break me if it were to evaporate, which is an easy possibility when investing the stock market. I had to be willing to lose the entire amount and not have it affect me negatively.
2. Intuition only. I agreed to only use intuition when buying or selling any stock. This was an exercise in intuition, not in making money! Making money was an effect but not the end goal. The end goal was to be in touch with my intuition and to honor the guidance I would receive along the way.
3. Integrity. I would buy only stocks in companies that were not tied to any shady business; this was an absolute must. Unethical companies or companies that produced products or services to manipulate humanity in any shape or form was out of the question. This also included companies whose products I did not or would not consume myself for whatever reason.
4. Patience. I agreed to be in it for the long haul. Since these were funds that I didn't need immediately, there was no reason to look at my account every day, which would only add to becoming nervous or anxious. However, once I invested the funds and purchased stocks, I decided to change this strategy a bit. Patience is still at the core of this agreement but not looking at my account changed slightly. More about this later.
AVERAGE MARKET RETURNS
The information in this particular paragraph I only discovered this morning. Had I known this information prior to investing, I would probably not have done as well as I did. Why? Because the market averages of gains seem to be much lower. At least in my opinion and definitely compared to my returns.
This morning and in preparation to write this article I decided to ask Google what Warren Buffet‘s average yearly return is. I have much respect for Warren Buffet, not because of his wealth but because of how he maintained a character of integrity in spite of his wealth. Most people who make lots of money also show it off in the most unattractive ways. Their flashy new lifestyle oozes stupidity with ridiculous toys, big houses and cars and boats that only serves their tiny, insignificant egos. Not so Warren Buffet. As wealthy as he is, he lives modestly and knows the difference between ‘needs' and ‘wants.' Instead of splurging he creates jobs for people. I wish people who look to him for stock investment advice would see that perhaps the only reason he was gifted with so much wealth is precisely because of his strength of character. Period.
Having said this, I don't know Warren Buffet personally nor do I follow anyone's stock advice tips. This is why I was surprised to read this morning that Warren Buffet's average yearly stock market return is around 20%. This type of return over a period of 50 years, especially with millions of dollars, and the power of compound interest, will make anyone a billionaire. Still, I was surprised to see that he “only” earns 20% interest in stock market investments. You can read a couple of articles here and here. Please note that this data may be inaccurate, so please do your own research.
In this article John Roberson, a professional trader, talks about hotshot traders earning between 100-200% per year. So, how is it that by using only intuition, my current two-week return already amounts to a yearly return of 246.56%?
Let's dig deeper.
MY 2-WEEK TRADES – 246.56%
To show you what I did, here are my 2-week trades. You should be able to verify these trades by simply doing some research to see if the purchase and sales prices are accurate. I am placing my spreadsheet of my trades here and a screenshot of a few sales from within my TDAmeritrade account below.
BLIND READINGS – WHAT ARE THEY?
To read something ‘blind‘ means to read a subject, topic, situation, person, location, or anything – without knowing anything or barely anything about it. Think of the following concepts:
The more I know, the less I know.
The less I know, the more I know.
To the logical mind this makes no sense at all because it seems contradictory. Another way of explanation comes from none other than the wonderful Bruce Lee:
“The usefulness of a cup is its emptiness.”
The cup is your mind. When the cup (mind) is full, usually with junk, pre-conceptions, ideas, data, feelings, biases, etc., then intuition is barely or not at all perceivable. Simply because all of this data serves as roadblocks for intuition to be perceived clearly and without bias. In order for intuition to be heard/seen/felt/known for what it is actually trying to communicate to us, is to empty our cup (mind), which means to stay detached, neutral and utterly quiet. This is difficult if not nearly impossible to achieve, when money is at stake. And the more money that is at stake, the more impossible it becomes.
If you are interested in learning how to do ‘Blind Readings,' sign up for my newsletter and reply to the first email to let me know. I read all reply emails, even though I don't get to respond personally.
So, how did I do this?
MY 3-STEP PROCESS
The reason the stock market is the perfect playground to practice one's blind reading abilities is because they use ticker symbols.
Step 1: For example, to read the ticker symbol GRPN is to perceive what my intuition is telling me about the company and whether or not to invest in it, without actually knowing what GRPN stands for, who the company is, or what they are even about. It's all about going around the ego. The moment the ego has a chance to give its two cents, the data becomes immediately thwarted with facts, fears, opinions, expectations and other energies that discombobulate the outcome of the stock's rise or fall.
Step 2: Reading my intuition when reading GRPN I then decide to follow the hunch and to know who is behind GRPN, which in this case stands for Groupon. I happened to know about Groupon, although I have never used their system since we do not have it in the country where I live.
Step 3: If my intuition gives me a ‘yes‘ to proceed, I then look at their chart. This is my final step. When I look at a chart, such as the one below, I immediately feel and know whether or not I should buy the stock or at least keep an eye out for the stock to drop and then buy it at a later time.
Although I initially decided to buy stock and then to forget about it, knowing that all of the stocks I had chosen would eventually grow by several hundred percent, I changed my mind and decided to watch my intuition on a daily basis as I was watching these stocks rise and fall. I wanted the full picture of what this exercise was all about, which was to also experience what it feels like to gain and lose funds. I felt that this was an important factor to getting the full picture of how to do “Blind Readings” about a topic I knew nothing about.
If the above steps would have been related to a person, then it would look like this. For example, I may be approached by a person to do a joint venture or to get a new business deal. The ticker symbol from above would then become the person's initials. The trading chart of the stock would be the person's picture. The concept is the same. When you are doing a ‘Blind Reading' you are never reading the “thing” or “person” outside of you – you are merely reading yourself and how you relate to that stock or that person. Let me say this another way.
The difference between reading a stock and a person is that the stock belongs to a company, which is influenced by many, many people. All of whom bring their energy into the company. This includes ownership, board of directors, and all of the company's clients. The company itself is just a shell, a legal structure on a piece of paper. What gives the company life per se, are all of the people tied to the company in one way or another, be it as owners, investors or clients. That's why I use the ticker symbol, the company name and the chart as my only bench mark. Beyond this, however, I don't need any information. I don't need to read articles, study their financials or get any other information whatsoever to get my “yes” or “no” marching orders.
A person however, is reading the person's own unique energy. That's why reading a person's initials or seeing their picture is enough to read the entire person. It is important to note that it is highly unethical to read the person directly and it would be a gross trespassing doing so! The person should never be read directly, especially not without their explicit, verbal permission. What we can read, however, is ourselves and our own intuition when we are looking at a person's initials or looking at their photo. This way we are not reading the person but our own intuition on how we react when looking at another person. Do you see this difference?
EMOTIONAL ENTANGLEMENTS WHEN TRADING
As I stated at the beginning, one of my agreements to trade was to invest money that I may see increase or not, and I had to be okay with the total loss of the entire amount. Note that the world has been hit hard with the effects of COVID-19, which is another reason why I decided to do this experiment now. There is no better time to test one's intuition than when everyone else is in a panic and when the market is volatile. Why? Because neutrality and detachment are absolute musts when using intuition for any investment endeavor. If I were scared, nervous or unsure, then my intuition cannot be read accurately because these energies of fear serve like energetic, chaotic tentacles that prevent me from reading “what is” and instead give me a picture that is tainted with the energy of my own fear of losing money.
About a week ago I saw that TDAmeritrade has a free trading software called ThinkorSwim, which is how I created the above chart. Frankly, I have no idea how the software works and the bells and whistles on that thing are so overwhelming that I would have to first watch a training video on how to effectively use the software. What it does do, however, is ring a bell when one of my stocks sold and it rings another bell with a ka-ching money sound when I buy a stock.
Since installing the software I've noticed that I feel like I'm standing in front of a slot machine at a Casino in Las Vegas. I've visited Las Vegas only once in my life and swore to never step foot in a casino again. I find the energy in such places so incredibly low that my sensitive intuition was on constant overwhelm. Having ThinkorSwim open and seeing the numbers go up and down as trades were made, made me feel the exact same way. While the stock market is not a casino, it might as well be.
INTUITION TO AUTOMATE MY TRADES
Because I don't like the physical feeling of adrenaline when watching my stocks go up and down, I decided that in order to stay neutral and detached, which are key ingredients for intuition to work unrestricted, I needed to set-up my trades on auto-pilot. I didn't know if this was possible, so I called TDAmeritrade and talked to the lovely gentleman who showed me how to set a “sell” order that is valid for 6 months. Unfortunately this is the maximum time frame, which means that I need to check-in on these “sell” orders before the 6 months are over. The good thing about setting a “sell” order is that once the order is set-up, I can walk away and forget about it for a while. He also explained to me what a “market” order is versus a “limit” order, since I didn't have a clue about what this meant. There are some other options available, which I don't understand at all. All of my purchases and sales are now set to be “limit” orders.
Although the I don't look at the software while it is running, I do have it open in the background so that I hear the bell ring when a stock is sold. As soon as it is sold, I go back into my TDAmeritrade account and set the same stock to buy it again once it hits the next amount that I want to purchase it as. I use the “limit” order once again to set-up the next purchase.
STOCK MARKET INVESTING vs COURSE CREATION
Which Returns a Better Yield?
At first blush a potential 246.56% return seems huge, especially when compared to the measly returns a bank would give us in our savings or money market accounts. What is not included in this rate, however, is the time I invested to buy and sell the stocks and to set-up the sale and purchase of these stocks on auto-pilot. I did not write down every day how much time I spent to log into my TDAmeritrade account, but looking over the past couple of weeks I can say that it was around 30-60 minutes per day, approximately 3 days a week. This adds up to approximately 3-6 hours total. Having invested $4,000 with a 2-week total return of 9.48%, or $396.24, this would translate to approximately $66.04 to $132.08 per hour. This is clearly not the way to think of stock market investing when one make this a life long endeavor. With the power of compound interest, as this amount grows, so does the hourly rate.
As an online course creator, how does spending my time creating an online course compare to stock market investing? Let's take a look.
For example, below is a course I created five years ago, which is about using EFT (Emotional Freedom Technique) to helping us expand our intuition. The course took me 7 days to create and cost me exactly $0 to produce. I used my laptop, my camera and microphone and a software called Camtasia to edit my videos. I cannot logistically apply the cost of these tools to this course alone, since I have created over 40 courses and each course is of different length, making this calculation nearly impossible.
As you can see from the earnings-to-date of this one course alone, this course has earned a total of $51,107.10 over a period of five years. Since this course took approximately 30-40 hours to produce, my return as an hourly rate from this course alone, is $1,227.68. This rate only increases as time passes since the course gets on average 200-300 new students each month.
To calculate the ROI (return on investment) would be 51,107% since it cost me $0 to create the course. If I would have paid myself $100 per hour to create the course, this would mean that it cost me $4,000 to create the course (40 hours @ $100/hr). The ROI over five years would then be 1,278%, which turns out to be 255.54% yearly.
This short 2-week investment experiment resulted in a 246.56% yearly return but requires approximately 6-12 hours per month. Maybe this time commitment will get reduced once I get the hang of what I'm actually doing. I will do my best to keep track of this moving forward.
A course costs me $0 to create, unless I consider paying myself $100 per hour to create the course, which results the final 5-year return of $51,107 on this $4,000 time spent would turn out to be 255.54% in return. The assumption is that the course has this type of earning potential over a 5-year period.
The returns are fairly close but there are a number of reasons why online course creation is a much more lucrative opportunity, at least in the short term. The first one being the automated, hands-off approach, which is virtually not possible with stock investments. Creating online courses is one of the easiest ways to creating passive income online. Right out of the gate an online course can only bring funds, not lose funds – unless your course costs you money to create. Even if you had to invest $500 into creating a course, such as a microphone and video editing software, investing $500 into something you can use over and over again is much different than risking $4,000 that I put into investing in stocks. Imagine if I had taken that same $4,000 and invested $500 into creating 8 new courses, each of which had the potential to giving me a yearly income of roughly $10,000 each, completely on auto-pilot. That would translate into 8 courses bringing me $96,000 per year completely on auto-pilot. Now this same $4,000 investment would turn into a 2,400% return in the first year alone, all while removing the risk of total loss.
However, to be fair to stock investments, we also must consider this wonderful thing called compound interest. And that's where stock market investing is a bigger winner. For simplicity's sake, let's just say I invested $4,000 and earned a yearly interest rate of 200%, which I then reinvested into buying more stocks, after 10 years this $4,000 would be worth $4,096,000. If I invested this same $4,000 into creating 8 courses that earn me a total of $96,000 per year, in 10 years I would have earned only $960,000.
So you see, the same $4,000 investment has the potential to earn me $4,096,000 in a 10-year period (resulting in a 200% return yearly), while also presenting me with the risk of losing it all. Whereas the $960,000 over a 10 year period will continue to bring me passive income for years to come. The ten years spent in babysitting my stock market investment could be spent traveling and enjoying a stress-free life because I wouldn't have to constantly worry that my investments are at risk and that at any moment my entire investment could be gone. Perhaps peace-of-mind is the most priceless ingredient in this comparison…
The second and even more important point is the topic of intellectual property. When I create a course the course belongs to me. I can license the course out to whomever I want and in doing so, I can use the same course to achieve multiple sources of income! The picture above shows just one course on only one third-party platform. It does not include the returns of the same course on other platforms. The more platforms I can put my courses on, the more income I can make from the same course.
Building intellectual property also means that if I ever want to sell my entire course to another person, so they can market the heck out of it, I can do that.
Lastly, the potential for losses is minimized with my online course creation but maximized when investing in the stock market. I may get a stock certificate when I purchase a stock, but when that stock drops in value, the certificate can becomes equally as worthless. Whereas the creation of my courses is entirely dependent on me and my skills and the value I put into the course. Hence, the more value I put into the course, the more income the course will return. I get paid for my efforts, rather than for a stroke of luck.
CONCLUSION – MOVING FORWARD
I have always felt that playing the stock market is nothing but a game for those who love stress and money. Now that I have dabbled in the stock market for two weeks, I know first-hand that this is exactly what it is: a game, a glorified slot machine. It takes zero character to play the stock market and the stakes are high for all. The end result of investing in the stock market is having created absolutely nothing of value at all, unless those gains are used to create companies, which then help create jobs. If an investor's main goal was to support only companies whose products and services are of highest integrity, then most companies would have exactly zero investors. Sadly, the truth is that stock market investing is not about supporting good and ethical companies but about making money. Therefore, the potential to gain all or lose all is fair. Each person is solely responsible for how much they want to invest and whom they want to invest in, and when they want to sell and why they want to do so. This includes people who choose brokers to invest on their behalf, which I find even stranger. But that would be a whole other article.
If I had to choose a life of making 250% on my investment in either the stock market or 250% on creating valuable course content, I would take online course creation hands-down every time. Long after I'm gone my creations are still here to bring value to those who take my courses and read my books. Whereas if I were to invest my most precious commodity, which is my time, in the stock market, I would feel quite literally like I had wasted my life.
Does this mean that I think less of professional traders or the stock market? Absolutely not. Everyone has their own journey to walk here on Earth and I did not come to judge people or how others choose to spend their time. My intuition tells me that investing in the stock market is entirely doable with left-over money that would otherwise sit in the bank, returning little to no interest, and provided the money invested supports companies who are based on integrity. It's better to choose a stock of a company that we believe in, and share in their success by making some interest, rather then leaving that money sitting in the bank doing absolutely nothing.
WILL I CONTINUE THE EXPERIMENT?
Yes, why not. The market is going to tank later this year and then again big time between 2026 and 2028, which will be quite disastrous to the world economy and cause countless suicides. Add to this that this part of COVID-19 was only Phase 1, with the second phase being a lot more devastating than what we've seen so far. I will be sure to have sold all of my stock before the market tanks so that I can use any non-invested funds in buying stocks when they hit rock bottom during this time. In the meantime I am continuing to create courses and writing books. Especially those that are related to intuition and those helping people back on their feet once the diarrhea hits the fan. 🙂
Be safe and remember that true intuition can only be achieved when you empty your mind and detach from the outcome.
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