Category Archives: Investments

investments

EWI’s Newest Service Picks ETFs: Interview with the Editor

EWI’s Wayne Stough adds another Flash opportunity service to the line-up: ETFs

By Elliott Wave International

Every trader or active investor at times wishes they could pick the brain of a pro that has “pulled the trigger” on real-money trades before.

EWI Director of Analysis Wayne Stough is one of these pros. For several years, several times per month, he’s been alerting his Flash service subscribers to opportunities in futures markets.

And now, there is a new addition to the Flash service line-up: ETF Opportunity Flash. We caught up with Wayne in his office and asked him a few questions:

Q: What method do you use when looking for high-probability trade set-ups?

Wayne Stough: My main approach is The Elliott Wave Principle. I look for clean, precise wave counts — usually ones that other analysts can confirm, so there is a general consensus on market direction. Once the market meets my other criteria for a high-confidence trade, I send out a Flash recommendation to my subscribers.

Q: How do you define a “high-confidence” trade?

WS: That’s a good question, because no market forecast is ever guaranteed, whether you use Elliott or some other forecasting method. Having said that, there are definitely moments when probabilities (or odds, if you will) strongly suggest a particular move. For example — and this is just basic Elliott — the Wave Principle says that markets move in a series of five waves in the direction of the larger trend (labeled on a chart 1, 2, 3, 4, 5) and three waves against the trend (labeled A, B, C). Also, there are certain proportions between these waves that markets often adhere to. So whether I’m counting a 1, 2, 3, 4, 5 pattern in a rally or a decline (i.e., in a bull or bear market), I focus on where the fifth wave should end, according to Elliott wave guidelines.

Once I’ve identified that price termination point, it becomes a matter of waiting for the market to get there. Fifth waves come at the end of the pattern and are usually weaker than third waves. So once I see certain technical indicators diverging (e.g. the RSI), my confidence grows: We are near the end of the pattern, and prices are about to reverse. That’s just one example of a high-confidence situation. But I do suggest a protective stop with every new Flash alert, in case the forecast doesn’t come true.

Q: Are you aiming for a particular percentage gain?

WS: Absolutely. When I send a Flash alert, I’m typically looking for a 3-to-1 ratio, at a minimum.

Q: Does that always work out?

WS: No. I monitor the recommendation for warning signals that let me know when a different scenario is unfolding in the charts. In those cases, I send out another Flash alert suggesting to lower or raise the stop-loss level, or exit the recommendation entirely.

Q: They say you love the S&P Mini as a trading vehicle. Why?

WS: I’d put it differently. I have traded the S&P for a long time, I understand that market’s nuances, and I like the leverage and volatility. But while the S&P comes naturally to me, I’ve also made many Flash recommendations on other markets, like gold and currencies. So, a better way would be to say that I love any market that gives me the desired risk-reward ratio. Now I’m also “looking for love” among various ETFs.

Special Introductory Offer: Get ETF Opportunity Flash now and have 2nd month FREE. Details.

Q: If traders expect a bear market, should they still consider Flash Services?

WS: Absolutely. I think we’re at the cusp of something very big in the stock market. And this is the time to act. Just keep in mind that speculating in severe bear markets (or during extreme volatility) carries additional risks. So be sure you do your research and know how your financial instruments behave under these conditions. And anyone who chooses to trade in this environment must only risk the money they absolutely can afford to lose.

Q: Who do you think should consider subscribing to EWI’s Flash Services — including the newest addition, the ETF Flash?

WS: Anyone who has some risk capital but not enough time or experience to find their own opportunities. Anyone who understands and accepts the fact that when you bet your money, there will be winners and losers. (Sometimes more of one than the other.) Anyone who knows better than to risk all their capital on a single recommendation; the old “all eggs in one basket” situation. I think in terms of quarters: I want all my subscribers smiling at the end of a quarter.

EWI ETF Opportunity Flash service now brings you potential high-probability opportunities in exchange-traded funds (ETFs). Don’t miss this special offer.

This article was syndicated by Elliott Wave International and was originally published under the headline EWI’s Newest Service Picks ETFs: Interview with the Editor. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Private Highly Profitable Canadian Real Estate Investment Opportunity

Don’t be shocked when you make money !

I have never seen an easier way to make money. If you have the attitude of a serious investor and not the mentality of a hyip player, then this is where you want to be.

I wish I could talk to you about this in person. How do I cut through all the Internet hype and junk and get you to consider this? I don’t know, but all I can do is be honest with you and hope, for your sake, that you will take a look.

I don’t know how to say this, because it sounds too good to be true, but I haven’t done ANY work with this program. Now, I am just sending out some ads to help the program since it has been so good to me and because I want to share this with as many people as I can.

You:

* don’t need to promote
* have no down-lines to build
* No matrix to fill
* don’t need a website

Really, all you have to do is sit back and collect the money. Please take a look at this. You won’t regret it.

Send me an e-mail at opportunity@alansmoneyblog.com if you’re interested.

Come and talk to us before you even think about sending any money.

This is a private group and there are not many chances to join. You have one now. Please take advantage of it. You will be happy you did. ***There is a minimum participation requirement of $525***

The perfect NO WORK money maker

NO Promoting, NO downline building, NOT MLM, NO products to buy and NOTHING to sell

This is a very RARE INVITATION for you to join an EXCLUSIVE Group of individuals
who have banded together to create a very profitable business organization.

A very small number of individuals will be accepted before this opportunity disappears.

We purposely control the number of associates involved so we can guarantee everybody makes
lots of money.

If you have ever wanted to be involved in a business that can create HUGE RETURNS on your
investments this is your chance.

The only difference is, You don’t have to be a millionaire to get involved.

To get in on this once in a life time opportunity send me an e-mail at:

opportunity@alansmoneyblog.com

Why you will absolutely fail in trading if you don’t master this

etftrendtrading-affiliate.jpg

There are many misconceptions about money management. Most think it means trading with stops, but that is only a small part of it. Below is a short part of the complimentary report I’ve found called “How to Safely Double Your Profits in 2009 Trading ETFs.” This little tip alone could save your trading account.

Why use risk controls?

Every trader/investor must guard himself against drawdowns, which refers to the percentage drop in his account size after one losing trade or consecutive losing trades. For example, imagine that after losing a few trades in a row, your $20,000 account is reduced to $12,000; that would be a drawdown of 8,000/20,000 = 40%. If I were to ask some new traders, “In order to be back up to $20,000, what percentage return do you need to generate?” Many would answer, “Since I lost 40%, I have to make back 40%!” This couldn’t be more wrong! Note that after losing 40%, the trader now starts with a lower base, i.e. to undo the $8,000 loss, the return he needs to generate is 8,000/12,000 = 66.6%! That is why I share free training videos on my website to help dispel some of the myths of trading.

The more severe the drawdown, the harder it becomes to undo the damage, as shown in the numbers below.

Drawdown %    %Required to get back to break even
10%                  11.1%
20%                  25%
30%                  42.8%
40%                  66.6%
50%                  100%
60%                  150%
70%                  233.3%
80%                  400%
90%                  900%

That is why all professional money managers only risk 1-2% per trade. It’s because no matter how good your trading system is at some point it is a statistical fact you will have 10 losers in a row. Based on risking only 1-2% per trade this is only a 10-20% drawdown and easily recovered. 99% of the hype trading and investing courses in existence don’t say or do this. They say risk 5-10% per trade. It is wrong and will cause you serious financial pain if you follow their advice.

Many of them also use arbitrary stop loss advice. For example, they say, “Place your stop at $100.10 because that is on the other side of a major support or resistance, trend line, MA, etc.”

This makes your risk based on the size of the stop. That is also wrong because the risk can be too large and it’s not the same risk on each trade.

Others reverse this and say risk only 2% total period and let that determine your stop. This is also wrong and will hurt you because it is important to have the correct technical stop.

The answer is to do both. Use a percentage and technical stop together. It works like this. Let’s say the technical stop is $100.10, but based on your entry price that is a 3% risk. Since your plan calls for a 2% risk you simply lower the number of shares you are trading. This lets you stay within your 2% risk and have the correct technical stop. This is exactly what most professional money mangers do.

Some say that this will lower their profits because of trading fewer shares. So what! Study the numbers above again. You know the old quote, “More risk equals more reward.” Well it’s not always true. Sometimes more risk equals more risk! If you lose your money you have no chance to make a profit. Even losing 50% is disastrous because you would then need to make 100% to get back to even.

Like Warren Buffet says, there are only two rules in investing. Rule #1: Don’t lose money. Rule #2: Don’t forget rule #1.

I’d like to add a third rule. Correct money management and position sizing must be mastered to ensure your long term success.

The good news is that it is easy to have correct money management and position sizing. I just explained how to use a combo of a % stop and a technical stop. If you want more of an explanation please visit the free video area on this website and click on the “Why have risk controls” video.

The system of entries, stops and profits taking is only half of your key to success. The other half is money management. If you get this part wrong you will lose your account every time regardless of how good your system is.

Click here for a newsletter on how to safely average 6% per month trading Exchange-Traded Funds.

http://www.etftrendtrading.com/cmd.php?af=1115334

Thanks, and good luck!

PS- In order to access these powerful FREE videos you must first opt in for the complimentary report.

Free Download: Get the Most Important Investment Report You’ll Read in 2010

Dear Investor,

Please recall with me the prevailing investor sentiment from this time last year …

U.S. stocks had been in strong decline for more than a year. Some of the most celebrated bulls had turned into bears, and the few bears that did exist before the downturn had become even more bearish. The Daily Sentiment Index for the S&P registered an astonishing 3 percent bulls — virtually no one was betting on the upside — and the bleakest of forecasts for 2009 called for nothing short of financial apocalypse.

But well-known contrarian analyst Robert Prechter took the opposite side of the trade. Prechter, a long-time bear, emerged as a solitary bullish voice among overwhelming bearishness. After closing out a record short recommendation that gained 800 downside points in the S&P, he issued the following bullish warning to bears:

“The market is compressed, and when it finds a bottom and rallies, it will be sharp and scary for anyone who is short.”

In the following days, the mainstream media reported that “perma-bear” Robert Prechter had turned bullish — the reports were only half true. Prechter had, in fact, turned intermediate-term bullish, but he stopped short of recommending average investors to jump back in. Why?

Prechter saw something on the horizon that the shortsighted mainstream market watchers did not, which brings me to the untold portion of this story …

In Prechter’s eyes, the bear market is far from over, and what he expects to happen after the current rally ends is significantly important to how you position your portfolio now.

Prechter’s firm, Elliott Wave International, is now offering for a limited time The Most Important Investment Report You’ll Read in 2010. Inside, Prechter reveals his big-picture outlook for U.S. stocks and the U.S. economy. The eye-opening 13-page report, originally published for paying subscribers to his Elliott Wave Theorist, examines the government’s unprecedented involvement in the financial markets and private enterprise. It reveals what’s already taken place in candid detail then focuses you on what the government’s measures will actually do for the U.S. financial markets and economy.

Be assured, this report delivers analysis you will not find on the front page of The New York Times or Wall Street Journal. It delivers independent insights from the man who saw the bear market — and today’s bear market rally — coming when virtually no one else did.

But hurry! This free 13-page report is available for a limited-time only due to its timely content.

Please learn more about and download the free 13-page Most Important Report for 2010 now.

Warmest regards,
Alan


About the Publisher, Elliott Wave International

Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

Property Development Investment Opportunity Open Again!

Hello dear readers. A while back I introduced you all to a private property development investment opportunity that I am involved in. Back then we were looking for new members in order to fund a new development we were working on and eventually we gathered all the additional capital we needed. Shortly thereafter we closed to new investors. This was back in April of this year.

Now in the meantime things have moved on and we find ourselves yet again in a situation where we need a few more members to put together some new lucrative property development projects.

So what I am saying in a rather roundabout way is that we are once again opening our doors to new investors!

If you’re a serious investor this an opportunity you would not want to miss.

I am introducing this opportunity to you with great reluctance because frankly I and the majority of existing investors want to keep this to ourselves. However we find ourselves in the situation where if we wish to work on any project in the coming year we need a small infusion of additional capital.  We wish this wasn’t the case but consider this your lucky chance to get in on the “rich man’s” game of property development.

Did You Know 20% of the Forbes TOP 400 millionaires list real estate development and investments as their primary source of wealth? That should tell you something!

Now let me tell you a few details about what we’ve got going on property wise and where your money will be put to work:

The first project involves the purchase and development of a gorgeous waterfront property. What we have in mind is to develop and sell cottage lots – essentially recreational lots. The property lends itself beautifully to this use as it’s located right on the shore of a large river and offers a magnificent view.

Expected return on this project is around the 200% mark (including principal)

The second project is a waterfront RV Park business. I bet you’re wondering what’s with us and waterfront properties. Well you see this is the kind of development we do – we work only with waterfront property because it is more valuable and that means more profits for us, and you of course – should you choose to join us.This project is barely started and we already have 16 RV spots already sold.

Expected net return is above 30% per year.

The third project is also a waterfront RV Park – we sure love these RV parks!This one is very close the the previous one – they’re just down the road from each other. It is smaller then the previous one but the return should be the same.

Now before I tell you how you can join I want you to read the two previous posts I made when I first made this opportunity available to the public. These posts contain some further details that I want you to know before even considering joining us.

Go here for the original introduction to this opportunity:

http://alansmoneyblog.com/2009/03/11/property-development-investment-opportunity/

Also please see the subsequent post I made with further details:

http://alansmoneyblog.com/2009/03/19/real-estate-investment-opportunity-details/

*Don’t skip either one as they’re equally important*

Now, let’s move on to another very important detail. To become a full member and start making money, you will be required to make a minimum unit purchase of  $525 (Canadian Dollars)

We tell you this up front because we want you to know we are serious and we don’t want to waste your time and ours if you are not.

All interested parties please e-mail me at the following address:

opportunity@alansmoneyblog.com

Make sure you mention “Private Real Estate Investment Opportunity” in the subject line or something similar so I know what you’re e-mailing me about – don’t just send me a blank e-mail!!

Wishing you all the best!

Cheers,
Alan
http://alansmoneyblog.com