Our approach using pattern price and time, along with technicals has proven to be a SUCCESSFUL SYSTEM.
You have to be good at 3 things ...and the biggest is experience as time teaches you that charts and indicators with a good understanding of the economy will get you right on the market more than 60% of the time and out of that time all you really need is a couple of winners and you are profitable.
Over the long-term, stock markets are driven primarily by fundamental forces and follow patterns that have been repeated since trading began hundreds of years ago... human nature remains the same, greed and fear are still the biggest enemies.
Over the longer term corporate earnings, economic shifts and even demographics determine the ultimate direction of stock, bond and commodity prices.
But over shorter term, markets follow patterns and retracements that are based on ratios and fibonacci sequences that provide the savvy trader with high probability setups.
As prices make a prolonged move in waves, we identify whether the move is impulsive, corrective and whether there is a change in direction pending. Most market moves tend to follow defined five wave and three wave patterns and knowledge of these patterns along with time and price projections give us a huge advantage. We use a collection of rigorously tested methods that have a history of successfully identifying high probability trades.
In addition , we take the overriding trend into consideration before trying to swim against the tide. Historically, the very best buying opportunities arise when we observe conditions of excessive optimism/pessimism in an environment where the longer-term forces are driving prices up/down. The odds in this process are higher than average and when all factors are considered we have forecasted moves based on the 1 minute to 1 year time frames.
Risk is our friend and inequalities can be taken advantage of ...the small investor finally has a shot at beating the market with low commissions and technology!
Key Rules:
Emotions are a traders worst enemy, be humble in victory and respectful in defeat...sometimes it does not go our way but we will work harder next trade.
Cut your losses and let your winners run. Stops on stocks should be set 8% below purchase price and moved up if market conditions change or the stock rises...after a 10% gain...the trailing stop is put at 4% and then 2% as the run produces huge profits.