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Why this rare generational opportunity only comes in every 20 years
Why S&P 500 Will Reach “6000” By the End of 2022
Why the primary-term uptrend is going to continue higher for the next 2 years
When you are accumulating multitude of positions, it is imperative that you do not favor few positions over the others regardless of how the setups might look or your sentimental value towards that particular stocks. This is where your portfolio could suffer if the heavily favored positions deteriorate even though rest of your positions performing well; this practice is what makes traders/investors emotional and exasperated. So, what I do is, I line up all of the positions with a same/similar position sizes. For example, let's say I am going to start building my portfolio with multitude of positions and have about 100K to start. I will buy about $2,000 worth for one position and another $2,000 and another $2,000 and so on. Because, you want to look at your account as a whole as some stocks will move, some stocks will consolidate, some stocks will deteriorate. As long as you are lining up your positions with position-sizing equally, they will offset each other and you will experience more steady and balanced growth in your portfolio and in your trading/investing psychological health.
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You will be surprised how a small amount of diligent and consistent deposits could make a big difference in your trading/investing account down the road, especially if you are working with smaller account. To grow your account over time, deposit funds to your account on a monthly basis. So every month, without ever skipping, transfer certain amount of funds to your account. And the funds that were transferred it should sit there until you see an opportunity to add to the current holdings or entering new position. Think of it like government is taxing you 10-20% extra every month on your paycheck (because if they did, you would have no choice to but to give it to them), and put aside portion of your monthly salary and transfer it to your investing account on a monthly basis and see it grow.
"Any patient investor can turn $5K a year into nearly $1 million, says billionaire investor. (CNBC Article)"
The biggest problem most investors have is, they let the market's volatility stir them up emotionally because they listen to the useless mainstream media who always imputing fear to their viewers (why they do this? Scientifically proven that human beings are more driven to negative news; remember, they make money on ads not investing or trading so they don't really care about your investments, they only care about your viewership). Stop this practice immediately and don't rely on their report, but only let the price-action guide you. Also, avoid too frequently checking your trading/investing account, and don't get overly excited when the market is up because you will get depressed when the market is down. For us, daily fluctuations means nothing and trend does not change in short few days; always think long-term and vision where your account would be in the next 2-3 years and in the next 5-10 years. Learn to look over the horizon, not what's right in front of you.
In this strategy, I will be holding underlying securities (common shares) 2-3 years or sometimes up to 3-5 years. But, it won't be passive just to 'buy and hold.' I will actively mange the holdings to benefit within the fluctuations in a primary-term uptrend. Selling partial positions before the correctional pullback and buying more before the bounce, hence being "Active." This strategy requires the ability to forecast the overall market’s health for the next 3 to 5 years, and the objective is to ride the major primary-term uptrend. The major trend will have its pullbacks & corrections within the intermediate & the minor term, but as long as it stays within the primary term uptrend, I can successfully execute this strategy. I must fully understand the totality and the major macro level of the market behavior to accurately forecast the market for the next 3 to 5 years. Stock picking is very important when it comes to this strategy, I will go through complete & multi scanning process to look for the stocks that are in the early phase of establishing major primary-term uptrend for the next 3 to 5 years of bullish run.
We all know that in the stock market, anything can happen and nothing is an absolute or guaranteed. I fully understand that even the most certain setups can be a failure, and because of that I have implemented the Two Parts Trigger System on every and each stock picks. But keep in mind, this isn't ordinary stop-loss level that most traders use. Let me explain, often times stop-loss could be a liability, where the stock can takes out your stop-loss and completely reverses on you (how many times this happened to you in the past). Because of this, I have constituted & established Two Parts Trigger System to maximize the potential ability to salvage the positions without getting stopped out prematurely. Basically, I made sure we don’t become victims of the flops, head fakes. traps, whipsaws, and shenanigans. With my Two Parts Trigger System, I am able to minimize getting stopped out prematurely, while greatly increasing my chances of salvaging the position for the turn around. You don't need to worry about Stop-Loss prices, as I will be letting you know when it is time to sell.
WAVE TARGETING STRATEGY:
Using my Wave Targeting System, I will be scrutinizing the potential price targets combining with Wave analysis, Fib. Extension analysis, major pivot analysis, and the long-term oscillators & indicators analysis to maximize the possibility of that potential targeted price to be accurate. Once the first target is reached, I will then proceed to take partial positions to lock in that gain and ride the remaining onto the second target. I've been using my Wave Targeting System without revealing this technique to anyone in public. This truly is my creation that took 5+ years to master. Every trader can pull the trigger and get into a trade, but the hardest part in trading is actually holding through the ups-and-downs and holding to your targets. This is one of the main reasons why most traders are short-term or day traders, because most traders can't forecast long term. But we, as Active Investors of the market, and as we hold things prolonged duration of time, this strategy is the essential to put my investing strategy complete and whole.
Suppose you have $100,000 to invest in the stock markets, and the markets go up in value by 8% after you invest. You might think that you will make $8,000. But if you invested that $100,000 in a mutual fund, then your returns can be much less. Here’s my estimate. While the market has increased by 8%, your returns could be eroded by disclosed costs (1.19%), hidden costs (1.44%), costs associated with the tax inefficiency of the mutual fund (1.10%), and some additional costs caused by the mutual funds’ sneaky behavior (2.49%). After these costs you are left with with measly 1.78%, or only $1,780 instead of the expected $8,000.
-Reference: Forbes article
FUND MANAGERS FAIL:
A staggering 86% of active large-cap fund mangers failed to beat the market every year. Nearly 89% of those fund managers underperformed over the past five years and 82% did the same over the last decade, S&P said. According to the analysis, 99 percent of actively managed US equity funds sold in Europe have failed to beat the S&P 500 over the past 10 years, while only two in every 100 global equity funds have outperformed the S&P Global 1200 since 2006. Almost 97 percent of emerging market funds have underperformed. Mutual funds aren’t doing any better than the stock market overall. In fact, research shows that the number of active mutual funds outperforming the market on a consistent basis isn’t just low, it’s zero.
-Reference 1: Financial Times article
-Reference 2: The Washington Post article
-Reference 3: CNN Money Article
-Reference 4: INC interview Robbins
DAY TRADERS FAIL:
An analysis of trading-platform data shows that 80% day traders are unprofitable over the course of a year. In my personal opinion, you put together day-traders along with all other short-term traders (holding 2-3 days), I believe we have 90% or more percentile where the traders are unprofitable. Unfortunately, most traders believe that day trading is the safest/best way to profit because of their ignorance of the market. A 2010 study from the University of California at David indicated a mere 1.6% of day traders were profitable net of fees.
-Reference: Market Watch article
WE HAVE AN EDGE:
90% traders are day trading and/or short-term trading the market trying to compete with each other and with the HFT (High Frequency Trading computers also knows as "Algos"). We have our own philosophy & system that no one else can able to perform or duplicate. Since all of my strategies are created by me (no books were ever written), this gives us a special and unique edge in the world of investing with great probability to become top 10% (statistically 90% traders fail overtime) of traders/investors who actually make it out consistently.
“When you enter the stock market, you are going into a competitive field in which your evaluations and opinions will be matched against some of the sharpest and toughest minds in the business. You are in a highly specialized industry in which there are many different sectors, all of which are under intense study by men whose economic survival depends upon their best judgment. You will certainly be exposed to advice, suggestions, offers to help from all sides. Unless you are able to develop some market philosophy of your own, you will not be able to tell the good from the bad, the sound from the unsound.”
– John Magee (from the book "Technical Analysis of Stock Trends")
So-called “gurus” love to show off their “brand new” Ferrari, or take selfies with the cash. If you want to follow these insecure and I-am-in-the-MTV-rap-video traders, I guess you can buy into it because they are selling, not trading. Bloomberg reports, the researchers say car ownership can be a good gauge of a trait they call “sensation seeking,” which has been linked to substance abuse and crime — not the most comforting behavior when it comes to money management. Also reported that risk-adjusted returns suffered more than 21 percent for the sports car owner versus the average car, concluding that the average hedge fund with a hot-rod is more than 16 percent more volatile than those with a manager who drives more “practical” car.
-According to Bloomberg