It has been a very tough and challenging stock market period. Currently we have 4 Distribution days on the SPY and 3 on the QQQ. This means the institutions are selling…We always want to be insync with the institutions…
However the ironic thing is that the average investor is bullish. Not a positve for the stock market.
There are stocks that can buck the trend in a choppy stock market period. Will it continue? I have no idea. The idea is to take small bets of your account size to see if trades will work. Be ready to have losses. There is no way to avoid them. You want to try to buy the strongest stocks in the strongest sectors when the market is healthy….
Watch to learn more….
Educational purposes only…No personal recommendations are made. One can lose a great deal of money when investing in the stock market!!!
One of the reasons I mentor and teach trend following is that I meet all kinds of very interesting people from all over the world. I have taught trend following from Australia to India to London to Mexico.
My goal is to help students learn the power of trend following and more importantly how really tough it is. Trend following is not a weekend course and you start making millions in up markets or down markets. It takes work…it takes patience and it takes commitment.
Want to share a story from one of my mentoring sessions on trend following.
I had a trend following session with a very nice man from Vermont who had invested in Fidelity Magellan $FMAGX since 1974. He told me that he has tried to be a trader for 40 years and nothing really had workHed other than his passive investment in Fidelity Magellan $FMAGX.
After our conversation I looked at the history of Fidelity Magellan $FMAGX. The compounded results of Fidelity Magellan $FMAGX have been fantastic ( however the proverbial past performance is not indicative of future performance nor am I suggesting to anyone to invest in Fidelity Magellan $FMAGX).
However one must dig a little deeper. There have been several periods in which could easily quit. In 2008 they were down approx 48%. Wow…these guys are suppose to be experts and they lost half of my money??? Wow…In trading..anything can happen. This is why one needs to “try” to protect on the downside and have an exact trading plan.
This is what I teach…and help traders develop. Their own unique trading plan that matches their personality and risk profile.
Trend following is not easy nor is trading…however commitment..patience…a trading plan…can give one compounded rates of return…
In order to succeed in the stock market, first the market needs to be in an uptrend if we are looking to go long. It is much harder to go short than ride trends when the market is healthy. Take into consideration anything can happen however this is becoming an old bull market and the biggest profits are on the onset of a new bull market. This takes more experience because at the beginning of a bull market most are in dis belief and the gloom and doom are thick…Just look at March of 2009 as an example or 2003.
The trends that should continue to grow in 2015 that I see and the stocks within each of these groups are as follows:
The below are my personal opinion and meant solely for educational purposes.
$CYBR, $PANW, $QLYS, •Biotech
$ILMN, $BIIB •Mobile Payments
$AAPL, $V, $MA •Self Driving Cars & or Assisted Driving
$MBLY, $TSLA, $GOOG •Social Media & Internet
Past performance is not indicative of future performance.
Trend Following Mentor is a not a licensed stockbroker or RIA. Nothing contained herein should be construed as a recommendation to buy, hold or sell any securities. I am not affiliated with any brokerage firms, companies, publications or any other financial or investing institutions. Always seek the advice of a financial adviser and do your own independent research prior to making any trade or investment decisions.
I have had numerous conversations with traders that want to do the proverbial buy cheap and sell high. This is not trend following. Trend followers buy high and sell higher…or sell low and cover lower…
Crude oil ETF is a fine example of how to trend follow for educational purposes…
Watch this educational video to learn
Past performance is not indicative of future performance…
The basic premise of my education is to buy the strongest stocks in the strongest sectors when the market is healthy. The question of healthy is some what iffy. We have had 5 strong days down….2 strong days up…which some have called a follow through day…yet on Friday the first day of a recovery or follow through day the markets sold off. My model almost has me on a buy.I have taken some small positions to see what will happen with tight stops. The key is to control your losses…
I have on my watchlist
These are not a buy list…nor shopping list. I want to share in order to educate how I go about investing in the stock market.
Some are calling for a resumption of the uptrend. My stock market model still has been out….but on the verge of entering. In this video you will learn about my ready list. I am not taking full positions as well as I have buy stops in place for the breakout. This is solely for education in order to learn how to prepare to buy the strongest high growth stocks when the stock market moves from a market under correction to an uptrend…
This is strictly educational…No trade recommendations are meant.