I analyze the best trading strategy to buy stocks in this article. If you are interested in this argument, you can visit my websiste at: http://www.mystocktobuy.com/. You are welcome. Bye, Fredrick
1. 1
The best trading strategy
I would like to show you that a new 3-month cycle has probably just started in the S&P 500.
Look at the image below.
As you can see in the DAV indicator, there are new signals of new accumulation.
The moving average that indicates the 15-day cycle has crossed over the blue line that indicates a 30-day cycle. This
implies that either a new 3-month cycle has just started or it is ready to start.
These graphic suggests me that the forecast of this index is substantially correct.
Look at it below.
2. 2
The question is: “How the FED can influence the behavior of the stock market?”
If I consider the following graphic about monetary mass M1, I can see a delay of about 1 month between the printing
of new money and the corresponding uptrend in the S&P 500.
Therefore, as a lot of money was printed in December, I expect a good run-up in January 2015 in the stock market.
I think that this is a simple concept. The more money you borrow, the great money you (great banks) can invest.
If you have followed me, you know that I sent a buy signal for the stock EQR via email last week to my followers.
I am used to explain what is very likely to happen in the stock market in my website and I give buy and sell signals
accordingly via email to my follower at least once per month.
I am used to offer few good buy signals to my paid members in my private membership area.
Someone can say: “Your website is not like either Barchart or Kiplinger and so on.”
When I enter those websites, I have a lot of information but also, a lot of confusion. I mean that I cannot understand
what I have to do after I have read them from a practical point of view.
When I established my website, my aim was very simple.
I wanted a website that was able to keep under control the behavior of the main indices and that was intended to offer
few medium term buy signal for very good stocks with a low risk every month.
3. 3
I wanted stocks with great potential performance and a low risk. I did not want to be a frequent trader. This is not the
way good things are made in.
I remember an interesting statement by Jesse Livermore, a well-known speculator in the last century:
“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you
this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting
tight!”
He was use to catch only the best stocks and to keep them until the end of their trend. Period.
I consider it the best trading strategy.
I am used to do the same for each 3-month and 6-month cycle. This is my style of trading.
I think that if there is a secret in trading stocks, this is one of the best-kept secrets.
For this reason, I continue to control the behavior of the stock indices and when a new cycle starts (a new uptrend), I
want to buy the strongest stocks. This is my trading philosophy.
When a good chance happens, I suggest buying a stock. There is no need to write an entire article about that. It is
obvious that you have to buy the strongest stocks, just to give an example.
“Buy the stock XXX today with a stop loss of X%”. This is an example of buy order of mine.
“Keep it simple”. This is my preferred statement.
Therefore, I will give an advice to my followers about what stocks to buy each month. I will give and advice to
my members in the area reserved to them as soon as something very interesting and with low risk happens.
Let us return to the analysis of stock indices.
As regards the other forecasts here they are.
5. 5
They explain to us that a new trend has started or it is about to start.
The problem lies in how central banks will behave in the new few months.
I consider the red line that I have drawn in these carts, the most important trading instrument.
If this line is broken down, it means that the six- month cycle has turned down and trading short is preferable. Until
that line is not broken down, I will trade long.
I think that that's all for this week.
Do not forget to share this post with your friends in social media. They will be happy.
For more information about my trading style and my
services, you can visit:
www.mystocktobuy.com
Bye,
Fredrick