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How to Trade a Vertical Market

8:01 pm PST. I went to have my teeth cleaned today. While having my teeth cleaned, I got to chatting with my dental hygienist, an older woman with grandchildren. We chatted about North Korea, Trump, and Asia. I told her I had just returned from Hong Kong and Taipei. She asked me whether I had gone to visit a friend. I said I went to attend a conference. She asked me if I worked. I answered, “well, sort of.”

I write a blog about the markets, I said. “Oh, is there anything good?” she asked, looking for a good investment tip. I said I do not give investment advice, I just write about my thoughts. She listened and continued cleaning my teeth.

As she scraped and picked around my gums, she began to tell me that she bought Facebook (FB) for $24 dollars. I said, “wow, that’s great.” She replied, with a slight hunch, “All my money is in Facebook and I am not going to sell it. I am just going to hold it for a while.”

I fell silent thinking about what a wise decision she had made and admired her ability to buy and hold through all the squiggles, through all the years, through all the pundits shouting that the next market crash was around the corner. She had done much better than I these last five years. Then I asked her, “what made you decide to buy it?”

She said she had been cleaning teeth for all these Facebook employees and “they were so enthusiastic” and they worked so hard that she could tell Facebook would become something. They do more than just connect people, she said. I get all my news on Facebook, she added. People buy things on Facebook, she said. “I reported something inappropriate once and they responded right away,” she said.

She said her husband had tried day trading, but he never did well. The best thing to do is to let your money work for you and then work a real job, she said.

Laying flat on my back in the dentist chair with my mouth wide open and her cleaning tools still steadily scraping away the plaque, I could only think and feel in silent admiration at her trade. I learned $2500 worth of conference material from this woman without the fancy food, the expensive hotels, the liquor, the airplane flight, the fancy computer programming, the support and resistance lines, and all the technical BS. She showed me how to trade a vertical market.

She will probably never know that I wrote this story about her. My dental hygienist is a savvy investor and works a real job too. 🙂

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