A really great way to learn how to stop letting the market tell you what to do and exploit its frequent ups and downs is to read the beginning of Chapter 8 of the classic investment book The Intelligent Investor by Benjamin Graham. (See page 213 in this ebook 610 pages). Download here.

Chapters 8 and 20 of this book are so important, and that why you must read it.

I first wrote about Mr. Market in my first book “Becoming Rich Fast” (which I give out in our investing workshop).

Graham describes the stock market as a manic-depressive business partner. Every day, you come to work with him, and he’s willing to buy your half of the business or sell his. When he’s manic and happy, no price is too high to pay for your half. When he’s depressed, no price is too low to accept for his half. You’ve got to learn to take advantage of Mr. Market. Buy from him when he’s depressed, and sell to him when he’s manic.

But you have to get the jump on him, instead of giving him the advantage by letting him act before you do. Reading Graham once a month will help you do this. It’ll keep you from missing a lot of great opportunities.