Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital Made a Fortune Investing in the Stock Market

233 Pages·2007·14.034 MB·English

by  James RevShark DePorre

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From the Library of Melissa Wong
I N V E S T
LIKE A ptg
S H A R K
From the Library of Melissa Wong
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From the Library of Melissa Wong
I N V E S T
LIKE A
S H A R K
How a Deaf Guy with No Job and Limited Capital
Made a Fortune Investing in the Stock Market
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James “RevShark” DePorre
From the Library of Melissa Wong
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© 2008 by James DePorre
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Printed in the United States of America
First Printing October 2007
ISBN-10: 0-13-221308-7
ISBN-13: 978-0-13-221308-0
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Library of Congress Cataloging-in-Publication Data
DePorre, James.
Invest like a shark : how a deaf guy with no job and limited capital made a fortune investing in
the stock market / James “RevShark” DePorre.
p. cm.
Includes index.
ISBN 0-13-221308-7 (hardback : alk. paper) 1. Stocks. 2. Portfolio management.
3. Investment analysis. 4. Investments. 5. Stocks—United States. I. Title.
HG4661.D47 2008
332.63'22—dc22
2007021594
From the Library of Melissa Wong
To my wife, Gail, and our children, Anneliese, James III, and our
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forthcoming new addition, Samuel. Everything I do is for you.
And in memory of my father, James Louis DePorre, Sr., whose
love and support will never be forgotten.
From the Library of Melissa Wong
This page intentionally left blank
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From the Library of Melissa Wong
Contents
Acknowledgments . . . . . . . . . . . . . . . . xiii
About the Author . . . . . . . . . . . . . . . . . xv
Foreword . . . . . . . . . . . . . . . . . . . . . . . xvii
Preface . . . . . . . . . . . . . . . . . . . . . . . . . xxi
Part I: Turning the Tables on Wall Street . . .1
Chapter 1: Shark Investing: Empowering the
Individual Investor . . . . . . . . . . . . . . . . . 3
Technology Empowers the Little Guy . . . . . . 6
The Whales of Wall Street . . . . . . . . . . . . . . . 8
A New Approach: Shark Investing . . . . . . . . . 9
Becoming an Investing Shark . . . . . . . . . . . . 10
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Chapter 2: The Making of an Investing Shark . . . 13
Endnote . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Chapter 3: What Is Shark Investing? . . . . . . . . . . . 27
Sharks Are Aggressive . . . . . . . . . . . . . . . . . . 28
Sharks Are Opportunistic and Reactive . . . . 30
Sharks Stay in Continuous Motion and Are
Always Looking for Their Next Meal . . . . . . 31
Sharks Plan Their Attacks . . . . . . . . . . . . . . . 33
Sharks Are Patient While They Wait for
Opportunities . . . . . . . . . . . . . . . . . . . . . . . . 34
Sharks Feed Best in the Middle of a
Frenzied Crowd: Trend Following . . . . . . . . 35
Sharks Have Little Loyalty and Are Quick to
Turn on Old Friends . . . . . . . . . . . . . . . . . . . 36
Sharks Are Risk-Averse and Don’t
Hesitate to Swim Away When
Danger Lurks . . . . . . . . . . . . . . . . . . . . . . . . 38
From the Library of Melissa Wong
viii Contents
Sharks Have an Attitude . . . . . . . . . . . . . . . . 40
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Part II: Understanding the Way the
Market Really Works . . . . . . . . . . . . . 43
Chapter 4: Why Long-Term Buy-and-Hold
Investing Is Far Riskier Than
Shark Investing . . . . . . . . . . . . . . . . . . . 45
Chapter 5: Why Conventional Investment
Advice Ensures Mediocre Results . . . 55
The Financial Media . . . . . . . . . . . . . . . . . . . 55
Brokers and Financial Advisors . . . . . . . . . . 57
Educational Institutions . . . . . . . . . . . . . . . . 59
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
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Chapter 6: The Myths of Wall Street . . . . . . . . . . 61
Myth 1: Buy Low, Sell High . . . . . . . . . . . . . 62
Myth 2: Small, Unknown Stocks Are
Only for Reckless Gamblers . . . . . . . . . . . . . 64
Myth 3: You Can’t Time the Market,
So You Should Stay Fully Invested at
All Times . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Myth 4: Beating the Indices Should Be
Your Primary Focus . . . . . . . . . . . . . . . . . . . . 67
Myth 5: Everyone Has Access to the
Same Information . . . . . . . . . . . . . . . . . . . . . 69
Myth 6: Stock Charts Are Useless
Voodoo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
Myth 7: You Should Buy What You Know . .71
Myth 8: There Is Only One Right Way to
Invest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . .73
Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
From the Library of Melissa Wong
Contents ix
Chapter 7: Understanding Market Dynamics:
Mood Swings, Feelings, and
Irrationality . . . . . . . . . . . . . . . . . . . . . . 75
The Market Is Nuts . . . . . . . . . . . . . . . . . . . . 76
Fear Is the Ultimate Driver . . . . . . . . . . . . . 77
On Mourning and the Market . . . . . . . . . . . 78
The Wall of Worry and the
Slope of Hope . . . . . . . . . . . . . . . . . . . . . . . . 79
Fear of a Crash . . . . . . . . . . . . . . . . . . . . . . . 80
Fear of Being Left Behind . . . . . . . . . . . . . . 81
It Ain’t All Brains . . . . . . . . . . . . . . . . . . . . . 82
The Good News About Bad News . . . . . . . . 83
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Part III: Becoming a Shark Investor . . . . . . . 85
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Chapter 8: Implementing the Shark Investing
Style . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
The Ten Commandments of
Shark Investing . . . . . . . . . . . . . . . . . . . . . . . 89
1. Thou Shalt Protect Thy Capital . . . . . . 89
2. Thou Shalt Use a Money Management
System Without Fail . . . . . . . . . . . . . . . 89
3. Thou Shalt Use Charts . . . . . . . . . . . . . 90
4. Thou Shalt Diversify Not Only by
Security but Also by Price and
Time Frame . . . . . . . . . . . . . . . . . . . . . 90
5. Thou Shalt Act Aggressively When the
Odds Are in Thy Favor . . . . . . . . . . . . . 91
6. Thou Shalt Not Be Afraid to Sell . . . . . 92
7. Thou Shalt Respect the Illogic of the
Market and the Role of Luck . . . . . . . . 92
8. Thou Shalt Not Invest as if You Are
Managing a Fund, Unless You Are a
Fund Manager . . . . . . . . . . . . . . . . . . . 92
From the Library of Melissa Wong