Psychological Analysis. Adam Sarhan

at the right time for the right reason. Shawn is truly one of those people.

      Years before this book was published, we did some work together (in the legal field) and stayed in touch. Then, years later, I hit a “wall” with this book, and thanks to the stars aligning, he showed up and wowed me once again!

Without his help, this book would not be published in its current form. Shawn rose to the occasion, pushed himself, and went above and beyond at every turn as he brought out his smart money superhero, made time to work on this book, sacrificed other important demands on his time, and got the job done.

      Shawn, thank you, and hats off to you; here's to many more great decades of bliss together, my friend!

About the Author

      Adam Sarhan started from scratch and is living proof that anyone can make it on Wall Street. He opened his investment firm in his dorm room as a graduate student, overcame many personal and professional obstacles, and has since advised numerous multibillion‐dollar firms, some of the largest celebrity billionaire investors in modern history, several of the country's largest banks, a slew of hedge funds, exchange‐traded funds, and mutual fund managers. He also works with countless businesses, institutional investors, and a large number of individual investors. Adam has been quoted in every major financial media outlet, is the host of the successful SmartMoneyCircle.com podcast, and is a contributor to Forbes, with millions of readers.

      Adam is passionate about helping people join the smart money circle by destroying their mental walls (overcoming their internal obstacles) and making smart decisions (especially with their money). Adam developed two powerful concepts that are outlined in this book: psychological analysis (for trading and investing) and mental walls. Psychological analysis was developed after he discovered that the traditional approaches to the market—fundamental and technical analysis—are only two pieces of the puzzle, and they are not enough to allow a trader or investor to consistently beat the market. The term “mental walls” describes the psychological barriers that stop people from accomplishing their goals. In this book, Adam shows you how to identify your mental walls and how to destroy them.

      Adam is an investor and a trader. He runs several businesses, including but not limited to a family office, a consulting practice, FindLeadingStocks.com, and several other stock market membership sites, just to name a few. You are invited to visit Adam's FindLeadingStocks.com and his SmartMoneyCircle.com site for more information.

Disclaimer

      This book is not a source of investment advice. All the information and any opinions expressed are intended for general informational and educational purposes only. The information, opinions, or any other content provided herein should not be interpreted as specific investment advice or a call for engagement in any transaction involving the purchase or sale of any security or investment product or service. You are solely responsible for any decision you make. All the information comes from resources believed to be reliable but are not guaranteed as to accuracy or wholeness as of the date of this publication. Past performance is not necessarily indicative of future results. There is always a risk of loss in trading and investing. Opinions articulated are subject to change without notice. The risk of loss in investing and/or trading can be substantial, and traders/investors should carefully consider the inherent risks of such an investment in light of their specific financial condition and consult a qualified professional. The author, firm, associates, or the author/firm's clients may have a position in any of the investments mentioned and their positions are subject to change without notice. Any reproduction or retransmission of any portion of this book without the express written consent of 50 Park Investments is strictly prohibited.

      Dumb money puts money into the market; smart money takes money out.

CHAPTER 1 How to Think Like the Top 1%

      One of the big goals of this book is to help you bring out the best version of yourself (your smart money superhero) and join the smart money circle. I will call that the alpha version of yourself. On Wall Street, alpha means above‐average returns, so the alpha version of you is the best version of yourself. Everyone starts out in the dumb money circle—even the children of wealthy families that are in the smart money circle. That's why most family businesses do not last past the first or second generation. The good news is that anyone can learn the skills necessary to bring out the best version of themselves, learn from their mistakes, live their “dream life,” and join the smart money circle. Once you do that you will accomplish more than you ever dreamed of and enjoy life at a completely different level!

      I started out in the dumb money circle. I began my professional life saddled with student loan debt and not having a clue about how to make money or how the market actually worked. For years, I toiled at thankless jobs for lousy wages. Some of my first forays in the market resulted in spectacular, soul‐crushing losses.

I was in the dumb money circle, but I had an overriding need to break out; eventually, I did, and you can, too. It started when I had my first realization that there is an endless battle raging inside all of us between (what I call) the smart money superhero (your good side) and your dumb money beast—a.k.a. Shmelf (your bad side).

ENTREPRENEURIAL SPIRIT

      In order for you to properly understand the timeless concepts I discuss in this book, I give you some context by sharing some important stories with you.

      I was born in New York City. My mother taught elementary school, then later ran her own logistics business, and my father, an immigrant, ran a small business selling men's suits a few blocks from Wall Street. I remember seeing “Wall Street” guys come in and buy dozens of suits, shirts, and ties, and from a young age, deep in my subconscious, I felt the allure. My parents taught me the value of education, they taught me the value of a dollar, and they instilled in me a work ethic that propelled me through college, graduate school, and into my working life.

      I inherited my parent's entrepreneurial spirit, and even as a kid, I envisioned myself as a “businessman.” I loved the idea of buying and selling things, and I was intellectually fascinated with the idea of solving a problem, adding value, and making a profit. I loved using my mind to make money. While in middle school, before Costco and Sam's Club were “a thing,” I found a local source where I could buy candy at wholesale prices, and I sold the treats at school between classes. Blow Pops were my number‐one seller.

      Eventually, I was forced to shut down because the “business” grew and attracted the attention of the principal, who told me that I had to stop. He called my parents, and I was terrified that I would be in big trouble. In the meeting, my parents asked him, “What did Adam do wrong?” He stumbled and couldn't find something to say (because, technically, I did not break any rules), and he finally proclaimed, “He's competing with the cafeteria!” To my surprise, after we left, instead of being in trouble, my parents said the incident offered a very important lesson about monopoly and power. “Next time,” my parents said, “don't get caught.”

For my next “business,” I sold fireworks but stopped when I realized that, in the wrong hands, they were really dangerous. I knew that if someone got hurt I would really be in big trouble. Unbeknownst to me at the time, the big timeless lesson there was always respect risk.

AN INVESTOR IS BORN

      I had saved some of the profits from my early businesses, and by high school, I had