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Before you jump into buying stocks, it’s good to monitor stocks gapping higher.
Get real-time guidance sent via email, so you can take immediate action on our actionable stock ideas when they occur.#Stocks #StockMarket #Investments #trading
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Don’t be left behind by using our early entry buy point strategies.
Don’t be left behind by using our early entry buy point strategies. With our quarter of a century experience trading the markets, know which risks are worth taking.#Stocks #StockMarket #Investments #trading
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The market continues to trade sideways to down
The market continues to trade sideways to down. Nevertheless, there have been a number of profitable set ups in a number of stocks we have on our Focus List. Learn more about our Focus Lists here: http://www.virtueofselfishinvesting.com/reports/search/p:1/q:focus%20list/s:0#Stocks #StockMarket #Investments #investing #finance
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Trade Like an O'Neil Disciple: How We Made 18,000% in the Stock Market
Dr. Chris Kacher and Gil Morales are two market wizards who have not only survived but thrived in the stock market for a quarter century.
Here is another chapter from their first book “How We Made 18,000% in the Stock Market” which was a bestseller, available in 5 languages including Chinese, Japanese, and Korean:
We are posting selections each day from our first book for investors and traders. You will learn the how we, as two former traders for trading legend William J. O'Neil of Investors Business Daily, achieved and continue to achieved market trouncing returns by always remaining fluid to changing market conditions. This includes buying and selling strategies which work best in the current environment which can be viewed in our Focus List Reports here: https://www.virtueofselfishinvesting.com/reports/search/p:1/q:focus%20list/s:0 (one month delayed for non-members).
We also turn the magnifying glass on ourselves to analyze our mistakes and what we learned, since we are and will always be students of the market.
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Will the US stock market crash soon?
We say “trees don’t clime to the sky”, we are usually in a 7–8 years cycle, the market is very high and people talk about bubble. Where are we going in the next 6 months to 1 year ?
, My personal track record has been verified by big-four auditor KPMG at +18,241%
If 8000 years of human history is any guide, when central banks print as much money as they have, a massive global market crash has been the result. One of the best known examples is the rise and fall of Rome 2 milleniums ago. But there have been numerous other examples of money printing gone wrong. Often, it is contained to a specific country but when the money printing becomes a global phenomenon as it has over the last several years, the result is always a major market catastrophe.
There are no examples in history where such a degree of money printing ended up as a “soft landing”. Countries are mired in massive debt burdens including China. Debt-to-GDP is at all time highs. Meanwhile, interest rates are at all-time lows. So unlike in 2008 after the great crash, central banks have no more “ammo” to further reduce rates to spark the global economy. Instead, they have painted themselves into a nasty little corner with no choice but to continue to print money to keep things afloat at best. Bond king Bill Gross who ran the world’s largest bond fund writes about it here: Bill Gross Investment Outlook March 2017
While the US has ended its QE programs, the European Central Bank and Bank of Japan continue to print as they have no choice. If they were to materially reduce QE levels, it would be the start of a serious bear market. Gross writes about it here: Bill Gross: Happiness Runs
Indeed, for the first time in our lives, the number of luminaries from legendary futures trader Ed Seykota to market historian and billionaire Jim Rogers to Bill Gross to Martin Armstrong, all of whom have top investment track records, have recently said there is a massive price to pay for all the money printing that has taken place globally starting with the US quantitative easing campaign in late 2008 after the great crash. Even the former head of the Federal Reserve, Alan Greenspan, has said that this will not end well in his classic understated manner.
What Should Investors Do?
My answer to the highly manipulated QE-markets of the last several years has been to create a self-learning algorithm that has shown itself to be profitable whether the market trends or not. It capitalizes on volatility. My VIX Volatility Model is up over +40% this year in real-time trading and we are only in March: ***Click for Results***
It’s best performing year was in 2015, a year that was largely trendless during the first 8 months of the year.
That said, had it existed in 2008 or 2000–2002 during major market corrections, backtests show these years would have outperformed even its stellar year in 2015.
VVM capitalizes on volatility, so it likes market corrections. But it also has the ability to capture profits that well outperform the major averages when they are in an uptrend.
***** The Power of Compounding *****
A retired businessman who went into stock trading full-time wanted to leave his two sons enough money so his sons could send their own children to top private schools. By compounding his trading capital which stood at about $120,000 at the age of 62, he was able to leave them more than $1.5 million dollars at the time of his death at 75, AFTER taxes. His annualized returns were about +28%/year.
Dr. Kacher’s backtested (and partial real-time) performance using the VIX Volatility Model:
- 2009 +178.7%
- 2010 +518.1%
- 2011 +274.5%
- 2012 +289.4%
- 2013 +103.1%
- 2014 +161.9%
- 2015 +589.7%
- 2016 +61.8%
We hope you will allow us to help improve your trading even if you don’t become a member. We ourselves will always remain students of the market, so we are also always learning. We have much free content of value in the extensive archived reports section which goes back to 2010. We also have an extensive FAQ section which can be searched by any keywords (egs: “setting sell stops”, “pyramiding positions”, “market psychology”, etc)
We have noticed that those who better understand how we invest are far more likely to become permanent members. And that means putting in some work to understand how our strategies can work for you.
As with all things, if you want something different to happen, if you want to improve or change the direction of your finances, you’re going to have to do something different. Understand what we do, and pursue your new outcome.
Incidentally, we wrote the following FAQ on why we continue to do what we do:
FAQ: Why Share Your Trading Strategies?
The emails, inboxes, and notes we have received from investors over the years since we started Virtue of Selfish Investing back in 2010 make this endeavor that much more meaningful.
I am the co-founder of Virtue of Selfish Investing, LLC and MoKa Investors, LLC. We run the website www.virtueofselfishinvesting.com
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tumblrbot asked: ROBOTS OR DINOSAURS?
Better to read the article.
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Can one get rich on stocks using technical indicators alone?
, My personal track record has been verified by big-four auditor KPMG at +18,241%
Yes. Fundamentals are not necessary. One of my mentors, the legendary futures trader Ed Seykota, calls fundamentals “funny”mentals. He was interviewed in Jack Scwager’s Market Wizards book as having the highest annualized return of anyone Schwager interviewed.
That said, there are many trading strategies that can work provided one emotionally and intellectually understands its ramifications. I personally have preferred using both a strategy that focuses purely on the technicals when it comes to market timing ETFs and a hybrid approach that focuses on both technicals and fundamentals when it comes to individual stocks. In fact, one of the reasons behind my huge returns was my deep understanding of the fundamentals behind companies such as AAPL, TSLA, EBAY, and AMZN, thus I could ride their sharp uptrends with success.
On the technical side of trading, the main thrust behind my algorithmic trading models such as my VIX Volatility Model (VVM) is that if they sense enough buying or selling pressure in the US markets which is a purely technical way of trading, they switch signals. VVM is far more sensitive to market movements so switches far more frequently but also reaps far greater rewards with less risk than the site’s other timing strategy known as the Market Direction Model. Both strategies monitor a number of variables such as the price/volume action for each stock on our Focus List which is a dynamic list that gets updated regularly on the basis of a proprietary combination of fundamentals and technicals, the same ingredients used to create the William O’Neil Model Books that showcased the strongest names and their characteristics for every market cycle going back to the 1950s. Examples of the Focus List can be seen here: Stock market timing reports (Type keywords ‘focus list’ into the “Search All Reports” search bar. A time delay applies to non-members.). VVM is up 31.7% in 2017 as of 2–6-17: Full stock market timing results table for Dr K VIX Volatility Model. A great deal of work has been put into VVM to debug and improve its reliability. This work showed a back-tested result of +177.03% at its peak in 2016. In addition, profit/loss was improved for each year going back to 2009.
If any of you have questions, please feel free to email me directly at chris@mokainvestors.com. While I answer every email, please first go to our FAQ section as it may contain the answer to your question.
I am the co-founder of Virtue of Selfish Investing, LLC and MoKa Investors, LLC. We run the website www.virtueofselfishinvesting.com.
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I am 22 with $50,000 to invest in stock. What advice would you give?
, My personal track record was verified over 7 years by big-four auditor KPMG.
First, I will assume this $50,000 is money you can afford to lose. Even so, everyone has a pain point when it comes to their own money. In other words, at what point do you throw in the towel and withdraw your investment? In the stock market, it is all too common for some to throw in the towel just at market lows only to see their investment turn back around and move back toward new highs. The fact is that they never should have allowed a loss to grow so large in the first place.
I personally invest part of my stock market investment capital in stocks from our Focus List which is a dynamic list that gets updated regularly on the basis of a proprietary combination of fundamentals and technicals, similar ingredients used to create the William O’Neil Model Books that showcased the strongest names and their characteristics for every market cycle going back to the 1950s. Examples of the Focus List can be seen here: Stock market timing reports (Type keywords ‘focus list’ into the “Search All Reports” search bar. A time delay applies to non-members.).
Another part of my stock market investment capital goes into my VIX Volatility Model’s signals. The main thrust behind my algorithmic trading models is that if they sense enough buying or selling pressure in the US markets, they switch signals. VVM is far more sensitive to market movements so switches far more frequently but also reaps far greater rewards with less risk than our site’s other timing strategy known as the Market Direction Model. Both strategies monitor a number of variables such as the price/volume action for each stock on our Focus List.
If you wish to try your hand at stocks and lack experience, I would only risk 10% of your $50k, or $5k, because you will most likely lose money. Consider it tuition costs in learning how to trade stocks. You could also use websites such as ours (www.selfishinvesting.com) which send emails out in real-time on stocks and ETFs as they become actionable. But again, there is no such thing as a get rich quick scheme. Rather than just spoon feeding our members fish, we teach our members how to fish. That takes work on the part of each member.
For example, if we send out a report on stock XYZ at the time it becomes buyable, it may be too volatile for one particular member’s trading style, thus should be avoided. But each member must learn their risk tolerance levels which is journey personal to each member. Alternatively, if the VIX Volatility Model (VVM) issues a buy signal, each member must decide for themselves how much of their personal capital to allocate to their preferred ETF. This will again depend on their personal risk profile. When money is on the line, if one has invested too much, one is more liable to prematurely sell their position even if the VVM remains on its buy signal.
So I hope I have illustrated some of the psychological pitfalls when it comes to investing. If anyone has any questions, feel free to write me at chris@mokainvestors.com. I answer every question though please refer first to our extensive FAQ section here: [Stock Market Timing Model- Market Timing Techniques]
I am the co-founder of Virtue of Selfish Investing, LLC and MoKa Investors, LLC. We run the website www.virtueofselfishinvesting.com.
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Technical Analysis: Chart patterns vs. indicators, which work better?
It has been a debate on the feasibility on price action (chart reading) or indicators (moving averages and oscillators) in the world of technical analysis.
Price action is said to be more direct and simple as it will not lag like an indicator does.
On the other hand, technical indicators are highly quantifiable, hence they can be backtested and developed into trading systems.Both chart patterns and indicators work well together. The key as we discuss in detail in our books (egs: Trade Like An O’Neil Disciple: How We Made 18,000% in the Stock Market, Wiley & Sons) is that one must develop one’s chart eye when analyzing a chart. This takes much focus and learning. And when one thinks they have figured it all out, the markets will throw a nasty curve ball called “context” which can take years to develop.
For example, in the 1990s, base breakout chart patterns worked great. But since the 2000s, they often fail. Thus, we advised our members that to stay profitable, one must buy on constructive weakness when the stock is near a logical area of support thus minimizing one’s risk. Then when the stock starts to move higher, one should sell and take at least partial profits when the stock’s price gets ahead of itself in CONTEXT with its chart pattern as well as the general market’s chart pattern. In other words, if the market is in a strong uptrending phase, one should try to stay with their stock and ride its uptrend instead of taking profits early. But in weaker markets, if the stock gets ahead of itself relative to its chart pattern, one should consider taking at least partial profits.
As for indicators, I prefer to take a page from legendary investor William O’Neil’s handbook and use as few as possible. Indicators are like training wheels. They’re useful but only to a point. As O’Neil’s right hand man as a technofundamental analyst and portfolio manager over several years, I was impressed at how few indicators he used because he was the master at analyzing stock charts. Over the years, I too can proudly say I use very few indicators as my chart eye has gone through many evolutions over the last 25+ years. By the way, it was in 1989 when I read his investment classic “How to Make Money in Stocks” that I finally understood the power behind a stock chart.
A last word on indicators: Whatever indicators one decides to use, make sure you have backtested the indicator thoroughly over many market cycles since markets can and do materially change from cycle to cycle. Further, the way in which you use the indicator must work smoothly with your trading style. In other words, if your style is more short-term oriented, using a 50-day moving average may be too long a moving average. If you’re longer-term oriented, using a 10-day moving average may be too short.
I am the co-founder of Virtue of Selfish Investing, LLC and MoKa Investors, LLC. We run the website www.virtueofselfishinvesting.com
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Is it worthwhile to attempt to time market entries and exits when investing in the market?
Is it best to try to sell when the market seems to be at a local maximum, and buy when the market seems to be at a local minimum? Or is it better to just buy and hold?
Over my 25+ year career trading stocks, I have found it most profitable to focus on trading opportunities that offer big profits on a time-value basis, either on the short or long side.
There was a question about the future of Chipotle (CMG) stock on Quora. I said that as one can see from our website’s archives that we focus on the sweet spots when it comes to stocks as we nailed the two sweet-spots for our members here: PPR - CMG continuation pocket pivot and PPR- Chipotle Mexican Grill (CMG) Pocket Pivot Buy Point on Friday. Both times the stock had just started into its steepest price rise. We then also nailed the stock on the short side here: SSS - Chipotle Mexican Grill (CMG) Short-Sale Set-Up
Most recently, my self-learning algorithms that make up my VIX Volatility Model (VVM) strategy were born from the frustrating markets that had no meaningful corrections in 2013 as market manipulation only became more fierce under the quantitative easing mandates by central banks around the world. Indeed, 2015 was considered by some media accounts to be the most frustrating and challenging year in 78 years because it was largely trendless.
But what doesn’t kill you makes you stronger. And the VVM has been what I would consider my greatest achievement in my 25+ year trading career in terms of profit/loss. In 2015, it scored a substantial triple digit percentage gain by using volatility ETF vehicles such as XIV and UVXY. And backtests showed VVM was able to achieve triple digit years each year going back to 2009.
Then more recently, it scored a profit of nearly +40% on its July 15 sell signal which ran nearly 2 months (Full stock market timing results table for Dr K VIX Volatility Model), and this despite the stock market which was running roughly flat the whole time: Market Lab Report - Mega-Frustrating Markets ? Not necessarily…
That said, there is no such thing as “getting rich quick” when it comes to trading stocks as all our members understand they must themselves have figured out their own personal strengths and weaknesses when it comes to trading as well as having a good understanding of their risk tolerance levels, ie, how much money are they willing to risk on a trade, which is a personal journey every member must have already taken before deciding to risk money. In other words, I could spoon-feed an investors exactly my buys and sells, but that does not mean they would be able to follow exactly as I do unless they understood their own personal risk tolerances.
I am the co-founder of Virtue of Selfish Investing, LLC and MoKa Investors, LLC. We run the website www.virtueofselfishinvesting.com.
