Psychological Analysis

Beat the market by using Psychological Analysis for investing and trading under any conditions

Conventional wisdom tells us that people are rational and make rational decisions with their money. But that’s simply not true considering most people fail to beat the market. Conventional wisdom also tells us that there are two primary ways to approach the market: technical and fundamental analysis. Again, that is not true because if it were—everyone would be rich. Think about it, how many times have you seen stocks with poor fundamentals go up, or stocks with great technicals go down? It’s obvious that something is missing. Author Adam Sarhan, Founder and CEO of 50 Park Investments, developed a new approach, titled, Psychological Analysis (PA). Coined by the author, the term teaches you how to make rational, not emotional, decisions with your money and shows you how to analyze both the individual and collective market mindset at a particular time based on the behavior and decision-making of people in the real-world. Psychological Analysis is designed to tip the odds of success in your favor.

After studying every major economic and market cycle going back to the 3rd century, the author explains that human nature is the one constant and tells you what actually drives markets. Psychological Analysis is responsible for major and minor market moves today, tomorrow, and all throughout history. Adam shows you that there are more factors that influence price than just fundamental or technical analysis and how to bring out the smart money superhero inside you. This invaluable guide helps you:

• Make rational, not emotional, decisions with your money—especially when you are under pressure
• Understand the psyche of the market so you can learn how to join the Smart Money Circle and consistently take money out
• Generate above average returns in all market environments
• Incorporate Psychological Analysis into your overall trading and investing strategy so you can make smarter decisions on and off Wall Street

Psychological Analysis: How to Outsmart the Market One Trade at a Time is a must-have resource for traders, investors, finance professionals, and anyone who wants to profit regardless of market conditions.

Foreword ix

Prologue: You Deserve to Win and Be Rich xiii

Acknowledgments xix

About the Author xxi

Disclaimer xxiii

Chapter 1 How to Think Like the Top 1% 3

Chapter 2 Why You Aren’t Beating the Market 11

Chapter 3 The One Question You Need to Ask Before Getting Started 25

Chapter 4 How to Use Fundamental Analysis Like a Pro 41

Chapter 5 How to Use Technical Analysis Like a Pro 53

Chapter 6 How to Develop a Winning Strategy That Beats the Market 69

Chapter 7 Psychological Analysis: What It Is and How to Use It 91

Chapter 8 Master Your Mental State and Your Life Will Change 105

Chapter 9 How to Make Smarter Decisions 117

Chapter 10 What’s Holding You Back? Mental Walls and Cognitive Biases 133

Chapter 11 Create a Smarter You with an Unbiased Mind 147

Chapter 12 Ever Hit a Wall? Destroy It and Master the Learning Cycle 161

Chapter 13 The Most Important Skill to Master on Wall Street 177

Chapter 14 What Happens Next: Navigating to the Right of the Chart 191

Chapter 15 Welcome to the Smart Money Circle 203

Epilogue: It’s Time to Become Rich 225

Bibliography 235

Index 237

ADAM SARHAN is the host of the Smart Money Circle Show and the founder and CEO of 50 Park Investments, a private investment firm. The company invests in several businesses and strives to provide intelligent ideas that generate strong returns for its clients in all market environments. Adam coined the term ″Psychological Analysis″ for capital markets, which adds an additional component to fundamental and technical analysis. He is a Contributor to Forbes, has enjoyed numerous on-camera TV appearances with CNBC, Bloomberg News, Fox Business, and CBS, just to name a few. Adam has also been quoted all over the financial media including: CNBC, Barron’s, The Wall Street Journal, Investor’s Business Daily, Reuters, and MarketWatch. He holds a BA and MA in Political Science. Visit SmartMoneyCircle.com to learn more.

Are you struggling to achieve your investment goals? Do you want to make more money? Do you feel frustrated? Don’t worry, you’re not alone. Most people don’t beat the market or come close to achieving their financial goals. There are many reasons why this happens, but the most common is they don’t make smart decisions. The reason why they don’t make smart decisions is because they don’t understand the process behind how they make decisions. If your investment strategy is the same as everyone else’s, it probably won’t yield the results you want.

That doesn’t mean there’s no solution. You simply need to adjust your approach and adopt a smart money mindset. This book teaches you how to do that by leveraging Psychological Analysis (PA), a term coined by the author to describe a new and game-changing strategy that you can use to make smart decisions on and off Wall Street.

Traditionally, investment strategies have been rooted in two main schools of thought: fundamental analysis and technical analysis. The problem is, these don’t seem to account for all the factors that move markets. How many times have you seen a market or a stock go up even though it has “poor” fundamentals and/or technicals? The opposite is also true—a stock with strong characteristics falls in price. So, traditional analysis doesn’t give you the results you want. To achieve lasting success, you need to learn how to think—and act—differently, and that is what this book is about.

Author Adam Sarhan sought to discover a new way of identifying strong investment opportunities. He studied all major economic and market cycles from the Third Century to today, looking for patterns and principles that have typically been overlooked. Through his research, he discovered that human psychology has been the one constant influencing all booms and busts throughout history. The reason is simple: human nature simply doesn’t change. Understanding this is key to investing intelligently and joining the Smart Money Circle.

Psychological Analysis will help you think differently, get the results you want, and bring out the smart money superhero inside you.

Understand human psychology and achieve your investment goals

The reason why you are not getting the results you want is because you are not doing what the smart money is doing. And it’s not your fault; they don’t teach you what the smart money does. That’s why I’m here. People in the Smart Money Circle have discovered how to take money out of the market. They do things differently. They think differently. And the big secret that they don’t tell you is everything they do is simple and very easy for you to learn. This book, Psychological Analysis, presents an investment paradigm that will open your eyes to the market-moving factor you’ve been missing and teaches you how to join the Smart Money Circle. Now all you have to do is read the book and discover the secrets for yourself. Rooted in extensive research, author Adam Sarhan’s book demonstrates how accounting for human nature can help you make better decisions and choose investments before the crowd (and avoid those that fail).

Numerous factors contribute to economic and market booms and busts. However, the common denominator has always been psychology. After all, human behavior doesn’t change that much over time. Yell “FIRE!” in a crowded theater and you will get the same reaction anywhere in the world or at any point in history. This idea also applies to investing. When you know how people behave (including yourself), beating the markets becomes much easier, and it starts with teaching you how to master yourself. This book teaches you how to apply psychological insights to make smart decisions, improve your investment strategy and begin growing real wealth on a consistent basis.