Liquid Millionaire - isaco

Stephen Sutherland
• A loss of 33% requires a 50% gain just to get back even.
• A loss of 50% requires a 100% gain just to get back even.
• A loss of 90% requires a 900% gain just to get back even.
Th is is why you have to get your timing right or your portfolio could end
up in a real mess. If you try to swim against the current, it will literally
leave you gasping for air. And some of my clients who have seven fi gure
plus portfolios were very happy about the fact that if they hadn’t followed
my lead during 2007 and early 2008, their portfolios could have seen
losses as large as £500,000 or maybe more.
Remember This and You Won’t Go Far Wrong
To close this chapter, let me say this. How the market really works is not
my opinion.
As Jesse Livermore once wrote, “Markets are never wrong–opinions often
are.”
How the market works is how the market has worked since it began
in the late 1800’s. It is always about supply and demand and the way
to analyse supply and demand is through looking at price and volume
action on stock charts.
But many people are not aware of that key fact. When they ask for my
opinion on what is going on with the market, I always give them the
facts based on what the market has been doing. But unfortunately some
people get sucked into the media headlines and mistakenly think that
the facts I am sharing with them are totally wrong. For example, let’s say
that the market has been acting really well and all the signs are showing
that the institutional investors are seriously buying stocks.
Th at is a bullish indicator and tells you that the market is more likely to
head north than sideways or south. But the news on TV, radio and in the
newspapers at this time may be mentioning things such as “terrorism,”
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