Today, I would like to share with you six steps that I'm confident will improve your trading results. When you have been around the markets as long as I have, you will notice how things work in the real world and how they translate into the markets.
Don't be fooled by the simplicity of this approach, like many things in life when you break them down, they're really not that complicated. One of the many challenges we have as humans, is we tend to want to make things more complicated and complex than they need to be.
Step 1. A market begins to move with the sponsors who have insider knowledge as it relates to a particular stock or futures market. This information will move a market up or down depending on the insiders' information. (These buyers are very smart and recognize opportunities early)
Step 2. Occurs days, weeks and in some cases, months after a move has started. There may be a mention of this particular market on several websites (even on the radio, TV) that this market has moved. (This is usually the first time that the public hears about this market and starts getting interested. Does not buy.)
Step 3. A blurb of information appears in the print media (yes, believe it or not, a lot of people still read newspapers and magazines) which gains more traction on the web. (The public now begins to get interested and starts to buy a little)
Step 4. Wall Street and LaSalle Street brokers go into full hype mode with special reports and begin to hawk this market to their customers. (Public now begins to buy in earnest)
Step 5. A full blown media blitzkrieg appears about this particular market in many of the financial websites and publications of major financial newspapers/magazines. This can be six months after step one and after a market has shown its greatest appreciation. (Heavy public buying/possible frenzy as all media, brokers, gurus start to tout the market) Just look back in financial history to the great dot-com bubble to see what I mean. That historic event was a total collapse of a myriad of stocks. But, nothing has really changed, stocks get bid up way beyond common sense and eventual Isaac Newton’s law of gravity comes into play.
Step 6. The sponsors and early insiders begin to move out of the market and take their profits off the table when Step 5 is underway.
Guess who is left holding the bag?
You will hear gurus say it is different this time, it's always supposed to be different ... but it never is.
History repeats itself because human nature does not fundamentally change. That is why the steps outlined above will continue to repeat over and over again.
How To Avoid Holding The Bag:
Once you understand the six steps above and combine this understanding with tools like MarketClub’s Trade Triangle technology, you'll have everything you need to achieve great trading results. Does this mean every trade will be a winner? No, nothing is 100% guaranteed in trading. If you are told otherwise, run the other way because it's a scam. Remember Bernie Madoff? He practically guaranteed 10% returns or R. Allen Stanford who ran a $7 billion Ponzi scheme from his offshore bank on the Caribbean island of Antigua, that guaranteed a 10% return. The take away, don’t trust anyone in the financial world that guarantees you a steady, safe return. If it sounds too good to be true, it usually is.
MarketClub not only gives you the tools you need to grab profits on the upside, it also gives you the tools for diversification and money management, two key elements of managing your risk and your money successfully.
Just as a heads up, we are not brokers, nor do not manage money, we simply offer superior, easy-to-use trading tools to avoid getting left holding the bag.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
I find that the information from this site is very similar and accurate as a weather report.