Frequently Asked Questions
by Ron Tank
Our country has the best stock market on the face of the earth, thanks to entrepreneurial people and a government that promotes individual freedom and prosperity.
Our country’s beginnings originated with people seeking religious freedom and is largely based on commandments from the Bible. In the past, it was common for worship services to be held in government buildings.
God was instrumental in the founding of our country. The Bible also tells us the government is in place by God’s authority. Our government is protecting our individual rights through a three branch government that is the most successful in the world. If not for God, we wouldn’t have our country or the stock market.
In the Bible, we also learn that bad characteristics, like remaining in fear, greed and pride are not good for us. Being bold, while avoiding greed and a prideful ego are essential to us in everyday life. Attaining good qualities the Bible speaks of will greatly improve our everyday lives and increase our abilities that will help us be a good steward and invest well.
Plus, God created us and built into each of us the Decision-Maker DNA. This DNA is common in all of us. It helps us understand, accept or believe after a third occurrence. The proof of this DNA is hidden in plain sight in the Bible, but once you see it, you’ll clearly see how it occurs over and over in the stock market. You will see it come alive in my book, The Moses of Wall Street.
- The Triple Tank System is the only investing system built on a biblical foundation. I don’t know of any other system built on God’s Word.
- You will learn how to use your God given Decision-Maker DNA which shows itself in the stock market as The Triple Tank and provides the timing used to eliminate your risk and maximizes your gains.
- The Triple Tank System is based on the Biblical principle found in Matthew chapter 25, that we are to be investors. In order for us to have more to manage, we need to increase our abilities. When should we begin? The Bible tells us – NOW.
- We are to be investors based on Matthew 25. To be given more, we must increase our abilities. We need to start NOW.
- We must have faith in a proven system, and in God. We need to invest, not gamble. This requires a system. And we need to have faith and look to God for wisdom in how to manage our investments and ourselves.
- We must be grateful and give back. We need to give God what is His and also be generous and help others.
Plus, remember what Warren Buffet said, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” He is speaking about certain times in the stock market isn’t he? He does use timing, he just hasn’t publicly said exactly how he does it.
(If you were to research it you would see many of the best investors talk about timing but they never, ever explain how they time the market. The Triple Tank system will teach you how to time the market to eliminate your risk and maximize your gains.)
But you have seen some real examples in my book, The Moses of Wall Street, this Workbook and there is even more proof in the Triple Tank Study Guide, which is filled with charts showing you over 100 years of stock market history.
Don’t pass something up just because it sounds too good. Just because it sounds too good to be true, doesn’t mean it isn’t true! What more do you need to believe it can be done?
Look at the accomplishments of NASA’s Space Shuttle Program, I’m sure in the beginning it appeared too risky and more than one person said, “Fly a vehicle into space and home again? It sounds too good to be true!”
I gave you a great way to do it using the Triple Tank with lots of proof that it works. I even explained why it works using a rock-solid principle found in the Bible. You’ll find a detailed explanation in my book, The Moses of Wall Street, in the chapters titled, “Could Warren Buffet be Wrong?” and “Your Decision-Maker DNA.”
At one time, NASA had a Space Shuttle program. In order for the shuttle to go out of our atmosphere and return safely home, they had to eliminate risk, or the potential for an undesirable outcome. What was the undesirable outcome? The Shuttle not coming back in one piece once it left the ground.
While they couldn’t totally eliminate all risk, based on a total of 135 shuttle missions, their success rate was 98.52%. The Triple Tank reduces (annihilates) the potential for loss to a similar degree.
Warren Buffet said, “Risk comes from not knowing what you’re doing.”
So it makes sense to begin to get rid of risk, we start by gaining knowledge, which you are doing with this system.
2) Due to entering the market when the vast majority of sellers are no longer present, the gains after a Triple Tank usually occur faster and are often bigger than at other times in the market.
3) You’ll be able to sleep well knowing you understand what the market is doing, and what you should do in response! No more roller coaster rides that make you sick.
For the beginner and the professional – the Triple Tank is like a giant Alka-Seltzer dropped into your world bringing a huge dose of relief and psychological sunshine!
- Not following Rule #1 and cutting losses quickly enough. The damage to one’s investing capital is not the only effect of not following Rule #1, the damage to your mindset and confidence is much, much worse. Always follow Rule #1.
- The biggest is likely not educating themselves to the same degree they would in order to get a job. A college education prepares us for a career. We need to be willing to invest the time and resources to properly educate ourselves for our investing activities.
- Not following number 1 above.
- Not willing to consider new ideas – It’s not what you don’t know about investing that will hurt you, it’s what you do know that just isn’t so.
- Making decisions based on the money instead of doing the right thing – Livermore once said. “A Professional concerns himself with doing the right thing, knowing if he does that, the rest will take care of itself.”
- Not developing rules and following them!
Then you’ll need to set up an account and fund it at a brokerage firm that lets you make the decisions. Often referred to as a discount brokerage. I would consider Merrill Edge, Charles Schwab, TradeStation, Interactive Brokers and Think or Swim. There are several others as well.
Once you have an account, you’ll need to decide how you want to use the Triple Tank. If you are new to investing, and honestly even if you are a seasoned professional, I recommend you learn how to use the Triple Tank System first with the indexes, then move on to stocks.
To be effective, you’ll need to chart and follow the big three indexes, the NASDAQ Composite, S&P 500 and the NYSE Composite.
For stocks, you’ll find a video on my routine on the web site. The basics include finding stocks that are growing fast, moving up in price recently and then appear to be in trouble. Don’t let the news on television or in the papers give you concern. Review “One Deadly Sin You Must Avoid: News, You Lose!” in my book, The Moses of Wall Street.
Start out with an ETF that represents the indexes and learning the right time to exit when the markets gives you the signal. The Study Guide will give you great insight into how the market tends to work over time, study it well. After you understand the Stock section of this Workbook, start looking for Triple Tanks in stocks.
After you have some success identifying the Triple Tank and dealing with the markets, you might look into stocks and using some margin or the Advanced Strategies – Options section for even more leverage using stock options.
NOTE: In just the first quarter of 2015, I have a list of 40+ stocks showing a Triple Tank formation. There’s plenty of opportunity.
Remember, it takes time since a stock or index needs to run up for several months, then decline over a period of 3 weeks or more, sometimes many months. The market indexes, like the NASDAQ Composite can go more than a year without a Triple Tank.
Review the Triple Tank System Model Book for a general idea of how often the indexes reveal a Triple Tank. Stock Triple Tanks occur every year and will require you to track a list of stocks while continually searching for and adding new candidates.
Each time the overall stock market exhibits weakness, individual stocks could be developing a leg down in the Triple Tank. The better you understand the three types of Triple Tanks and the more time you devote to looking, the more you’ll find. Like the Bible says in Matthew 7:7, “seek and you will find.”
- Make sure that your investment capital will not be needed for general everyday living for 12-18 months, these funds are truly for investing, not every day expenses.
- Start with what you have and work from there. I started with $3,000 and added to my account whenever I could.
- Money management and discipline is key to your long term success. Your survival is in how well you protect your capital, money is your tool with which you will make more money.
Never go “all in” with your investment capital on any one investment. I like to split my capital into as much as 10ths. Sometimes, I will weight one thing heavier than others based on how confident I am of what I have in front of me at the time.
You will have to find the formula that works for you but I advise no more than 20% of your capital in any single investment. Over time, you may be able to add to a winning position and end up with 50% or more of your account in one position, but this should only be done when you have a large profit cushion as your advantage.
The Bible supports what I call the Decision-Maker DNA, which says we need to encounter something three times before we understand, accept or believe. Some, but not all, examples in the Bible are:
Peter – Acts 10 – vision on the roof
Moses – Exodus 4 – three miracles to convince Pharaoh he was sent by God–(staff, snake) (hand, leprous) (water from Nile, blood)
Jesus – Matthew 26 – Praying in the garden in Gethsemane
Satan – Matthew 4 – Tempted Jesus
Pilate – Luke 23 – Spoke to accusers before surrendering
Paul – 2 Corinthians 12 – Paul pleads with the Lord to remove his thorn
If you gain the understanding of your Decision-Maker DNA and simply change this one action – stop selling in the third decline – this alone has the power to transform many people’s investing lives. The transformation will really be amazing once you begin to use your Decision-Maker DNA and the Triple Tank to start buying!
That’s one great advantage of this system, you’ll know exactly what the current condition of stock market is and what you should or should not do. No worries. But each day will have information that will help you, depending on how you want to use the Triple Tank.
How important each day is will depend on whether you want to be strictly involved with an index or if you also want to be in stocks. You may not need to know what the indexes or a stock did every day all the time, but there will be times when each day matters. It just depends on how you plan to use the Triple Tank and where you are in the market at the time.
to currently 1.2%?
Starting in 2003, Bill changed the percentage gain due to the massive bear market of 2000-2002 and the fact that many Follow-Through Rallies during this time period just did not produce major bottoms.
Because of this and the increased volatility of the markets, Bill used the percentage gain occurring in the March 2003 Follow-Through Rally to set a new standard that would signal the gain necessary for a Follow Through Rally.
It has been reduced since then due to the fact that some Follow Through Rallies occurred with less than a 1.7% gain and still worked just as well. So 1.2% is the new standard and if it changes I will be the first to let you know.
NOTE: This is my personal interpretation based on statements made by Bill during a seminar in March 2003 and content in his financial newspaper, Investor’s Business Daily, since that time.
Second, the fact is 80% to 90% of people who use stock options lose money. A big goal of mine is to help you eliminate risk and avoid the financial and psychological damage that comes from losing money in the market. Plus, your mindset needs to be protected as much as your investment capital. Controlling your losses and keeping them small is easier to do when you buy and sell stock.
Third, I suggest using stock options more as your level of experience and your decision-making skills improve. You’ll also find as you learn this system, there will be times when a particular scenario will provide a much higher level of confidence. You’ll learn when to be more reserved and when not to be. Sometimes, you can go from one to the other in just a matter of days, like I did in the OpenTable trade, the video can be watched here – https://rontank.com/proof/.
You must have great confidence in yourself and not quit just because you had a loss or two, especially as you learn the system. You must also understand that you are the source of risk, your inability to act and cut losses is what causes risk in the market. The market can only do to you that which you allow.
The short answer: If you have years of experience, understand options very well, have perfect clarity on how to use the Triple Tank System, are very disciplined and can follow rules without fear, greed or pride coming into play, then using stock options can be a great tool.
Nothing replaces the real training that occurs when you are actually engaged in the market with your “real” money on the line. You must learn to deal with your real emotions, which comes from real world situations where decisions need to be made.
Imagine drawing two lines on the ground 8 feet apart. You run and attempt jumping from one line and not touching the ground until reaching the second line 8 feet away. On some attempts, you make it the full 8 feet, others you don’t. Now, imagine you are 50 stories in the air on the roof of a building, another building is 8 feet away. Would you jump?
The Triple Tank allows us to enter the stock market at just the right time, even though Warren Buffet says we can’t… sorry Warren.
Some Bible verses that support the Decision-Maker DNA are:
Peter – Acts 10 – Saw vision on the roof three times
Moses – Exodus 4 – people out of Egypt – (staff, snake) (hand, leprous) (water from Nile, blood) Three miracles.
Jesus – Matthew 26 – Jesus prayed in Gethsemane three times
Satan – Matthew 4 – Satan tempted Jesus three times
Pilate – Luke 23 – Pilate spoke to accusers before surrendering three times
Paul – 2 Corinthians 12 – Paul pleads with the Lord to remove his thorn three times
1. I will seek God’s wisdom to help me become a better steward
2. I will avoid debt that prevents me from saving and investing
3. I will have the mindset of “failure is not an option”
4. I will learn and follow a proven system
5. I will only change the system as I prove the changes worthy
6. I will not allow fear, greed and pride to interfere with my decisions
7. I will cut losses quickly and avoid adding to a loser
8. I will not worry about being right or wrong, I will be both
9. I will not argue with the market, I will learn to listen
10. I will return a portion to God through a tithe and offering
Number 10 is last because you won’t be able to do it unless you follow the first 9.
For a complete description, see The Ten Commandments of the Successful Investor.
Doing the initial research and establishing your stock list, if you want to engage individual stocks, will require a few hours to complete and get organized. The investment of your time to learn this system will require the largest amount of time. But once you learn it, it will serve you for the rest of your life! Is it worth your time?
I know it is.
I started with around three thousand dollars. You can definitely start with any amount and I recommend you start now, even if it is with $500. Do what you can with what you have. Save more to invest. Keep working at improving your abilities and you’ll find yourself with more and more to manage.
Seldom will it ever benefit you to consider the tax implication when it comes time to buy or sell in the stock market when using the Investing God’s Way system. (Only when you may be approaching a hold time long enough (12 months) to be a long term gain might your decision to sell have an impact, and again, your accountant can help you there if need be).
someone use your material and not his?
In William O’Neil’s book, How to Make Money in Stocks, he says, “Bear markets usually have three legs of price movement down.” but it is never defined or explained.
Investing God’s Way expands on “three legs down” and gives you a master’s degree in what I call “The Triple Tank.” The Decision-Maker DNA is what causes the Triple Tank to occur in the stock market. Once you understand it, you’ll wish you knew about it a long time ago!
I compiled all the material in the Investing God’s Way System in order to teach my kids this system, but I also want them to understand and use what William O’Neil shares in his books too!
The eye will find it if you only study past examples and learn to be positive when others are not! You have many examples in The Moses of Wall Street, this Workbook and the Triple Tank Study Guide.
You need to be able to execute under pressure. The more you can avoid the doom and gloom news, the less pressure you’ll have. Moses didn’t part the Red Sea, he trusted God and God parted the sea. You have the knowledge of the Decision-Maker DNA God gave you, now you need to make a good plan to put it to use. Study the material. Have faith! Do it!
Knowledge + Wisdombelieved x Action = Desired Result
We’ll have faith and take action or remain in fear and do nothing.
I Timothy 6:10 –“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.”
The real problems are – “wanting to get rich” – not being rich and the “love of money” – not money itself.
Money isn’t evil, Satan is.
Money is important, but not more important than God.
Hope – is the expectation of an event or activity producing a desirable outcome.
Faith – is being sure of what we hope for and certain of what we cannot see (Hebrews 11:1)
Faith lets us take a step without knowing what our foot will encounter on the next step.
Love God first! – Matthew 22: 37-38 “Jesus replied: “‘Love the Lord your God with all your heart and with all your soul and with all your mind.’ This is the first and greatest commandment.”
He tells us to seek His kingdom first in Matthew 6:33, “But seek first his kingdom and his righteousness, and all these things will be given to you as well.”
God will keep you from loving things more than him.
Remember, arguing with the market is costly, not brave. If you trust yourself to do what is needed, when it is needed, you have nothing to fear. Failure to protect yourself is the single biggest risk you’ll face! Having faith in oneself to act when needed is really what most investors fear and is the true source of risk. The market can only do to you what you let it. Make yourself get it right. If not, do something to stop the pain! Then study more and do it again. Trust yourself. Prove you can follow your plan. Trust yourself even more. Remember, failure is not an option.
Opinions are what we believe that cannot be substantiated with proof or evidence. Learning this strategy and using it will keep you from getting too opinionated. Remember, your opinion is just that. Base your actions on a proven method… not your opinion!
Someone who is a successful investor will study, learn and follow a proven method.
They admit being fearful when they are attempting to put their foot in the water, but they do not let the fear stop them from getting their foot wet.
They have a plan on how they will handle their investments before they invest.
They always follow Rule #1 and do not allow themselves to add to a loser and hope it turns into a winner.
The do not worry about being right or wrong, they will be both. They concentrate on making big money when they are right and not allowing small losses to escalate into big loses, they avoid disaster.
They understand fear, greed and pride of opinion are part of their life and have learned how to deal with them all.
They have learned to listen to the market, not argue with it!
They are patient and can wait for good timing. Just like a good bow hunter who can wait for the big whitetail and know if and when the shot is worth taking.
They have positioned themselves to not need the money they will invest. And when they start making money, they control their life so they avoid debt. Freedom to be a successful investor comes from freedom of debt.
Most importantly, they recognize the value of God’s word and instructions that can help them be better investors. One of the most important is recognizing God owns everything, it is not really ours to start with. Don’t try to own, be a top-notch manager instead. They strive to become the good and faithful servant!
A successful investor – the good and faithful servant – understands that while money is important, it is not more important than God. They keep God first always.
Hope is the expectation of an event or activity producing a desirable outcome.
Greed can take hope to a new level in a bad way, causing us to doing whatever necessary to achieve the desired outcome – including breaking guidelines or laws.
In the stock market, being hopeful is good, until we break our guidelines and rules or we ignore the market, then we break our rules, greed has set in.
Without rules, greed can be hard to detect.
1. Read the Bible and let the truth guide me in all areas of my life.
2. Read, study and learn the Investing God’s Way system, which includes the book, The Moses of Wall Street, the Triple Tank System Workbook and Study Guide.
3. Read, study and learn O’Neil’s books, How to Make Money in Stocks and The Successful Investor.
4. Open an investing account and over time add money to it.
5. Start right now defining a plan of how I’m going to use the knowledge and wisdom I’ve gained.
6. After gaining some experience and confidence and proving that I can always follow Rule #1, I would use margin or options to leverage my abilities.
7. Track my performance and determine what I need to get better at.
8. Follow a plan to use my money in thirds.
1. God’s work
2. My family and others
3. To enjoy life
9. Always improve.
10. Always be grateful!
And the wisdom to pray a prayer authored by Karl Paul Reinhold Niebuhr, which is;
“God, grant me the serenity to accept the things I cannot change,
The courage to change the things I can, And the wisdom to know
Second, if you follow Rule #1 and keep your losses small, you should not suffer a great loss. If at some point in time you have suffered a great loss, you need to regroup, examine where you fell short, learn from it and commit to studying these materials thoroughly. As you are able, rebuild your investing funds and begin again.
Many people suffer great losses, it may resemble a war being fought and a battle lost. But we only lose the war if we choose to give up. There’s no shame in getting knocked down or even knocked out, it’s what you do next that counts, do you quit or commit. Some of my biggest lessons and greatest blessings came from the times I was knocked down.
Once you are involved with the stock market, fear should not be the basis for your decisions. You should have good guidelines and rules to base your decisions on. Review the chapter in my book, The Moses of Wall Street, called “Three Keys to Becoming a Good and Faithful Servant (and Four Deadly Traps to Avoid).”
people succeed in it?
- The Bible
- How to Make Money in Stocks (William O’Neil)
- The Successful Investor (William O’Neil)
- The Disciplined Trader – Developing Winning Attitudes (Mark Douglas)
- The Battle for Investment Survival (Gerald Loeb)
- Tape Reading and Market Tactics (Humphrey Neill)
- Reminiscences of a Stock Operator (Edwin Lefevre)
- Investment Psychology Explained (Martin Pring)
- How to Buy Stocks (Luis Engel)
You will find links to all the books listed above by clicking here
NOTE: These questions will be updated and expanded as we receive feedback from our readers. If you have any questions or feedback we ask that you submit them through the contact page on our website www.RonTank.com/contact