Traders' Library Blog

Famous GooRoos Predict Massive Stock Market Plunge

Famous gooroos  are calling for a dramatic plunge in the stock market:

 

- Andrew Smithers says, “US stocks are now about 80% overvalued.”

- David Stockman: “a gigantic, horrendous storm,” is not far away.

- Jim Rogers: the greatest crash of our lifetime will happen “later this year or next.” “A $68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans.”

- Marc Faber says he sees a plummet of 40% or more and “it will end very badly, extremely badly.” “Investors are on the Titanic.” Stocks are about to “endure a gut wrenching drop that would rival the greatest crashes in stock market history.”

- Harry Dent says, “We’ll see a historic drop to 6,000… and when the dust settles – it’ll plummet to 3,300.”

 

I’m about to run to Walmart to buy guns, ammo, and freeze dried food!

 

Here’s the problem. These gooroos keep predicting the end of the world year after year and are wrong year after year.

 

Then, when the market finally actually collapses, they will talk about how they predicted it ten years ago!

 

In other words, the more wrong they are, the more they will talk about how they predicted it years in advance! They will turn their incredible failing into a marketing plus!

 

Really?!

 

The lesson? Ignore gooroos. They are in the business of selling you books or newsletters. They are not in the business of making your money.

 

In fact, they are HARMING you by keeping you from investing in the greatest bull market in history! Your retirement and your family and YOU are harmed by their bogus warnings.

 

To me, the most important thing is to make money now in the market. To me, we should obviously be concerned about a large drop in the market. But we can make money in bear markets! So I want to trade right now, make money, and not crawl into a cave.

 

I have a course coming up designed exactly for this.

 

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Ignore the gooroos. Build your own income to attain financial freedom.

 

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Good trading,

Courtney

 

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He Started Screaming…

I was with a friend this morning. Bright and early.

 

My friend was screaming at his computer. He was losing big money on a trade, over $20,000.

 

“I can’t believe its going down! They just reported great earnings!,” he exclaimed.  

 

The price moved lower.

 

“I’m hoping it bounces!”

 

“Sell it,” I said calmly.

 

“But it should bounce here!”

 

“Get out now. Clear your mind. You can always get back in after a minute. But your will have a clear mind. Right now, your mind is blown. You have no objectivity or discipline.” I explained.

 

he was extremely agitated and kept looking at his screen and yelling. I kept repeating my advice to get out.

 

I left him screaming at the screen and walked out.

 

Let me give you the back story. He is a very experienced trader with perhaps 20 years of experience but he doesn’t trade very often. He started again about a month ago.

 

He consistently made money. He proudly showed me how he was doing it. I told him I was nervous that he was making so much. I was worried about his risk management.

 

He told me that he just risked a couple of hundred dollars on each trade. He told me got out very quickly if he started to lose money. I felt a lot better after that.

 

But this morning he revealed that he had lost $40,000 yesterday and was down $20,000 today and had big losing days during the last week. He had made about $80,000 in the previous three weeks but was now net down for the month. That is why he was freaking out.

 

One problem was that he was trading to make money to support another business. So he was putting a lot of pressure on himself. I think that pressure caused him to take too big a risk.

 

One of the keys of trading is to keep cool and not put pressure on yourself.

 

Two ways to do this:

1. Trade smaller size. Cut your positions down to the point that you simply don’t care if you if you have a losing trade.

2. Get your psychology straight. This is the ultimate way to really enjoy your trading and to increase your profits. Click here to learn about my course on the Psychology of Massive Wealth. It is the cheapest course in the world compared to what it will do for your psychology about money.

 

Check out my online course, The Psychology of Massive Wealth. I address this issue detail.

 

 

Good trading,

 

Stocata S&P 500 Analysis: October 28, 2017.

Last week I wrote: "Not the expected correction but, a higher high with a larger gap on Friday. I like to think this is an exhaustion gap. About 50% of the time an exhaustion gap is filled within a week and an exhaustion gap is the last one in the current up or downtrend. Keep that in mind if this gap is filled the coming week. The indicators are still moving with a negative divergence compared to the index price move. Price is far away from the averages and at the upper side of the volatility channel. Looking at an Elliott wave count, we may be near the end of an impulse wave 5, short, medium and even long term. There is an up Fibonacci target at 2612. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

The price gap of the previous week is filled within a week. If this is an exhaustion gap then we have one more reason to believe that a reversal can be expected the coming weeks. However, I believe there will be first a minimum higher price toward the last Fibonacci target at 2610. The indicators are still moving with a negative divergence compared to the index price move. Price is far away from the averages reaching the upper side of the volatility channel. Looking at an Elliott wave count, we may be near the end of an impulse wave 5, short, medium and even long term. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

Sylvain Vervoort  http://stocata.org/

Where In The World Can I Trade?

 

The flippant answer is anywhere your little heart desires.

 

Which is almost true! But let’s be a bit more realistic.

 

First, you need to have an OK internet connection. It doesn’t have to be great but it needs to be OK. I’d say it needs to be over 1 MPS but preferably 5 mps or higher.

 

Most broker platforms and charting packages don’t require much bandwidth to work. Heck, nearly all brokers have phone apps that you can trade on!

 

My preference is to have the fastest speed possible but you don’t require it.

 

Occasionally, I will go to a hotel and they advertise high speed internet access but it isn’t. You can usually do three possible things to solve this problem.

 

First, ask to move rooms. Sometimes the WiFi gizmo is far from your room and they can move you to right next to is.

 

Second, plug in an Ethernet cable into your computer. You will likely need an adapter to do this but Ethernet is far faster and more reliable than WiFi.

 

Third, go to Starbucks! Free WiFi! Not fast but good enough. Hey, you need a cup of coffee anyway!

 

In the US, I always travel with a portable WiFi. It’s basically a cellular phone in a small square box. Usually works well wherever cell phones work well.

 

It is a bit of a luxury as it costs me about $80 per month but I feel more secure having it around. Particularly when I am in small towns with poor WiFi.

 

Do you have any questions on Trader’s Life? What do you want to know about the life of a pro trader? Send me a question to support@wealthbuilderllc.com and I’ll answer it!

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Stocata S&P 500 Analysis: October 21, 2017.

Last week I wrote: "As expected the index made a small higher price the past week. You can now see the index moving up while the indicators are moving down, a divergent negative indication. We should expect a correction the coming week. Price is far away from the averages and at the upper side of the volatility channel. Looking at an Elliott wave count, we may be at the end of an impulse wave 5, short, medium and even long term. And of course, there are the gaps I expect to be filled. Closest down targets are at 2510, 2480 and 2460. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

Not the expected correction but, a higher high with a larger gap on Friday. I like to think this is an exhaustion gap. About 50% of the time an exhaustion gap is filled within a week and an exhaustion gap is the last one in the current up or downtrend. Keep that in mind if this gap is filled the coming week. The indicators are still moving with a negative divergence compared to the index price move. Price is far away from the averages and at the upper side of the volatility channel. Looking at an Elliott wave count, we may be near the end of an impulse wave 5, short, medium and even long term. There is an up Fibonacci target at 2612. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

µ

Sylvain Vervoort  http://stocata.org/

Stocata S&P 500 Analysis: October 14, 2017.

Last week I wrote: "Last week I mentioned: "There is room for higher prices the coming week. Closest price targets from Fibonacci projections are at 2535 and 2550." Both targets were reached. I expect a slightly higher price starting the coming week but, the start of a reversal after that. Both indicators are topping and price is far away from the averages and touching the upper side of the volatility channel. And of course, there are the gaps I expect to be filled. Closest down targets are at 2510, 2480 and 2460. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

As expected the index made a small higher price the past week. You can now see the index moving up while the indicators are moving down, a divergent negative indication. We should expect a correction the coming week. Price is far away from the averages and at the upper side of the volatility channel. Looking at an Elliott wave count, we may be at the end of an impulse wave 5, short, medium and even long term. And of course, there are the gaps I expect to be filled. Closest down targets are at 2510, 2480 and 2460. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

Sylvain Vervoort   http://stocata.org/

Stocata S&P 500 Analysis: October 7, 2017.

Last week I wrote: "There was no continuation after the down reversal at the end of the previous week. The past week we first saw a flag price pattern completing on Monday and Tuesday, breaking out of this pattern on Wednesday finally closing the week higher on Friday. There is room for higher prices the coming week. Closest price targets from Fibonacci projections are at 2535 and 2550. Possibly, at that point there will be a negative divergence between the Stochastic RSI and the indicator. The index will be closer to the upper side of the volatility band, the upper side of the up moving pitchfork and farther away from the averages. Finally we still have the gaps I expect to be filled. There is a good chance the index will go up another number of days but, I do expect a reversal the coming week(s). First targets are filling the gaps. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

Last week I mentioned: "There is room for higher prices the coming week. Closest price targets from Fibonacci projections are at 2535 and 2550." Both targets were reached. I expect a slightly higher price starting the coming week but, the start of a reversal after that. Both indicators are topping and price is far away from the averages and touching the upper side of the volatility channel. And of course, there are the gaps I expect to be filled. Closest down targets are at 2510, 2480 and 2460. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

Sylvain Vervoort  http://stocata.org/

Stocata S&P 500 Analysis: September 30, 2017.

Last week I wrote: "The index went a few points up Monday till Wednesday but, back down Thursday and Friday, closing just a few points higher compared to the week before. The index now reached the 161.8% Fibonacci target projected over the last wave down of the last correction wave. The candle chart is showing a doji, hanging man and evening star pattern, all negative signs. The stochastic oscillator is showing a downward move compared to the upward move in price over the last few days, a negative divergence. The index is back at the R1 pivot resistance , the 161.8% Fibonacci resistance, the upper side of the volatility channel, indicators are topping and price is far away from all averages. Furthermore there are two gaps I expect to be filled. Logically we should expect a reversal with a further downward move the coming week(s). First targets are filling the gaps. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

There was no continuation after the down reversal at the end of the previous week. The past week we first saw a flag price pattern completing on Monday and Tuesday, breaking out of this pattern on Wednesday finally closing the week higher on Friday. There is room for higher prices the coming week. Closest price targets from Fibonacci projections are at 2535 and 2550. Possibly, at that point there will be a negative divergence between the Stochastic RSI and the indicator. The index will be closer to the upper side of the volatility band, the upper side of the up moving pitchfork and farther away from the averages. Finally we still have the gaps I expect to be filled. There is a good chance the index will go up another number of days but, I do expect a reversal the coming week(s). First targets are filling the gaps. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

Sylvain Vervoort  http://stocata.org/