The Santa Claus Rally!

This weekend, I decided to read through a number of news and trading websites, and all I saw was…

The Santa Claus Rally that's ready to rocket and send stock market prices to all-time highs. 

I'm a BIG sceptic by nature and so, I thought this was a fantastic way to trick investors into buying stocks.

So I decided to analyse my charts, to see if this rally does come about at Christmas time. 

What I saw surprised me and I just know it'll excite you! 

Because it's actually true! This Christmas you have an 83.33% chance to profit from this Santa Claus Rally!

Let me explain how!

Two reasons why Santa can make you rich this December!

No one has been 100% certain in all the years why the stock market flies in the last few days of the year, but here are some reasons.

Santa Claus Rally reason #1: Tax relief for investors!

Investors and investment managers sell their stocks to try and lock in tax reductions before the end of the year. And then, they buy other stocks which they believe will go up in the next year. 

The selling of old stocks and buying of new ones, pumps the stock prices up, on the stock market, as there’s a ton of people buying stocks for the new year. 

Santa Claus Rally reason #2: You feel jolly with your Christmas bonus!

When Christmas time comes, you know how it is…

People feel happy, joyous and confident. Especially after they’re paid their big fat Christmas bonuses… 

And with these bonuses, many investors like to pile into stocks before the New Year.

The reasons for the Santa Claus Rally make sense, but only this will convince you! 

Enough with the reasons, we need proof in the matter! 

So let’s delve into the JSE stock market chart to see for ourselves. 

The JSE has gone up 13.7% over six Decembers!

What you see, is the monthly JSE stock market chart… 

Each bar shows you the buying and selling prices, that took place in a month. 

Looking at the chart you can see how each December performed from 2008 up ‘till 2013. 

2008: 1.4% 

2009: 2.9%

2010: 6.1%

2011:-2.5%

2012: 3%

2013: 2.8%

So, there’ve been five out of six Decembers (83.33%) that’s showed positive gains. 

And in total, the JSE has accumulated 13.7% gains in all of those Decembers. 

This means, you have a higher chance of profiting from buying this Christmas than selling. 

Here’s how you can profit from the Santa Claus Rally this year!

I spend every day looking for high probability trades just for you!

When it comes to my Red Hot STORM Trader service, I examine the markets each day looking for the best profit opportunities for traders just like you!

So, when the Santa Claus Rally hits this December and I see a high probability long (buy) trade lining up, I’ll send members of my service an e-mail and SMS to tell you exactly what you need to profit!

It’s as easy as that!

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Healthy and blue: Two ways to spot winning stocks on any stock market!

While I was cycling at the gym yesterday, Irvan, one of my Red Hot Storm Trader subscriber's introduced himself to me. 

We chatted about how he started trading and his passion for trading the markets. 

As I was about to leave, he asked a very good question,

"How do I choose what stocks to buy?" 

I answered back with two words, “Healthy and Blue”.

I'm sure right now, you have the same puzzled look on your face that he had. 

But don't worry because in the next two minutes, I'm going to tell you everything I told Irvan so you know how to choose winning stocks on the stock market. 

Let's go.

Healthy 

The first thing I look at when I choose a stock to buy is, how healthy the chart looks.

This chart is as sick as a chart gets!



There are three things that tell me the chart is sick…

#1: Thin volume, fat chance of being stopped out!
You can see that the price is all over the place jumping up and down vigorously. 
 
This means that the volume of the stock is very thin which shows little interest with the buyers and sellers.
 
As a general rule, I’ll only look to trade stocks with over 100,000 shares traded on average per day… Anything less and you’re more likely to find a chart where the price is all over the place!
 
#2: It’s not the size that counts!
The candlesticks are either huge or tiny, which is not good.
 
You see, this tells me that the buyers and sellers are completely clueless where there’s no confidence on where they want this stock to go.
 
#3: No trend, no trade!
There are no clearly defined trends which means which means, the stock can go anywhere.
 
No matter how robust your trading strategy is, without a trend, you’ll be stopped out when a stock moves erratically.
 
And that's why I don’t choose stock charts that look unhealthy.

Next, look at the chart below and tell me…
 
This looks like a healthy chart don't you think? 



You can see that the uptrend is clearly defined, so you’ll know where the stock is more likely to go.

There’s also less jumping up and down with the candlesticks, so you’ll have a much lower chance of being stopped out by buying this stock.
 
And because there are no big jumps in the stock, should tell you that there is high volume of buying and selling.
 
So buying a stock with a healthy looking chart means, you’ll be able to follow the trend and not have to worry about all of the high volatility while you’re in your trade. 
 
Finally, to make your life easier to choose winning stocks…

Trade only blue stocks!

If I were to try to define Blue chips it would be this.
 
Stocks that are the most popular, established and heavily invested stocks on the South African JSE.
 
They are the big daddies of the JSE which are in top 40 companies listed.

Here is Investopedia’s definition as well…
 
“The name "blue chip" came about because in the game of poker the blue chips have the highest value. 
 
Blue chip stocks are seen as a less volatile investment than owning shares in companies without blue chip status because blue chips have an institutional status in the economy. Investors may buy blue chip companies to provide steady growth in their portfolios.”
 
So now you know exactly what I look at to choose high probability winning stocks on the stock market…
 
Healthy and Blue!
 
Always remember,
 
Wisdom yields Wealth

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The most important trade of your life!

Are you ready to take the most important trade of your life?

It doesn't matter what trading strategy you're using, as long as you have one. It doesn't matter what time period you're using. 

And, it doesn't matter when you're going to take the most important trade, as long as you do.

To help you do this, I'm about to reveal the most important trade you'll ever make.
It can be daunting, but it’ll lead you to incredible profits!

The first thing you need before you make this important trade, is a robust trading strategy with strict criteria.

Your trading strategy should include your entry, stop loss, take profit and risk levels.

Once you have your trading strategy in place, you’re ready to take the most important trade OF YOUR LIFE…

Your first trade!

Put your money where your mouth is and take the trade that lines up according to your strategy.

Your first trade will be a stepping stone to a profitable future!

Whether your first trade is a winner or a loser trade, don’t let your emotions get the better of you!

Keep at it!

You see, you need to have the discipline and drive to keep at it and follow every trading signal that comes your way.

By taking every trade your strategy yields, you’ll get to the point where you’ll enter into a long-term state of certainty and confidence with your trading.

It’ll be a serene stage of your trading career where, with winning and losing trades, you know you’ll grow your portfolio slowly but surely.

Note: To have a winning trading strategy, make sure that you ride your winners up twice as much as you let your losers.

By this I mean, set your stop loss at 50% of where your take profit is.

The first trade you take might be the most exhilarating and frightening experience, but always think of the bigger picture.

If you stick to your trading strategy, in a year’s time, you’ll laugh all the way to the bank.

So, are you ready to take your first trade and bank a consistent income trading the markets?

“Wisdom yields Wealth”

Don't forget to like these two pages on Facebook for awesome trading tips and Facts about 

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What is trading? And why choose it over investing?

In the last few months, I’ve been posting crucial articles on trading strategies,tips, tools and tricks. And yet, I’ve never posted an article on what trading is and why I prefer it to investing. 

So let’s start off and sum up Trading in a nutshell

If you think about the general term for “trading’, it’s exchanging one item for another item. 

And here’s a simple example, so you can understand this better. 

Let’s say you buy an unpolished and dirty table for R400. You believe that you have the tools and the techniques to furnish the table and sell it for R800.

So you buy the table, take it to your garage and start to polish and clean the table until it’s in mint condition!

You then take a photo of the table, that you’ve revamped, and you sell it for R800.

This means you made R400 more than what you bought it for. You just made a 100% return on your table.

If you can understand this example, then trading will be a breeze for you!

When we talk about trading in the financial markets, it’s very similar to exchanging a product or service. 

You’ll buy something for a low price, anticipating that the price will go up, and sell it at a higher price for a gain. 

This is very similar to the table you bought for R400 and sold it for R800…

So, Why I do I choose trading over investing?

You first need to understand that the big difference between trading and investing is ‘time’. 

Trading is when you buy a financial instrument for a low price, and you try to sell it at a higher price or vice versa. 

But the only difference with trading is that, you’ll hold your trade for a short period of time.

Like a couple of days or weeks!

For me a short period of time is holding a financial instrument for anything less than six months. 

Investing, on the other hand, is when you buy and hold your financial instrument (mainly shares) for a much longer period of time. Anything more than three years is, what I consider a long term hold.

The problem with investing however, is that you can’t profit from the ups and downs in the market, because you’ll just be holding onto the financial instrument for a long time. 

And that’s why I find it much more fun and profitable to trade in the short term rather than invest for a longer period of time. 

So now you know!

“Wisdom yields Wealth”

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Would you train at gym in a collar shirt? If so, you got what it takes to be a successful trader

Last week, after work, I went to gym to do a bit of cardio. While I was putting on my gym clothes, I realised something!

I forgot my t-shirt at home and all I had was my white collar work shirt.

Initially I thought about giving gym a miss.

But then I realised that I didn't care about what people thought.

In fact, I thought about how going to gym, no matter what I was wearing, was better for my health than not going at all!

And so, even though I was wearing a formal office shirt, I started to kill those calories.

And this got me thinking, “working out in this formal office shirt is very similar to being a successful trader!”

Read on to find out what I mean.

Don't let anyone judge the trades you take

Do you think I felt embarrassed training in my work shirt at gym?
No!  I don't care what people think. I know that by exercising, I’ll lose weight and be healthier.
You should have same mentality with your trading. Don't worry about what others think about the trades you take.

You need to have tunnel-vision when you trade and only focus on your proven and tested trading strategy.

If your trading strategy has a 70% win rate, that’s all you need to be a successful trader.

Follow your trading strategy and don’t let others change your mind by judging the trades you take.

When you don’t care about what other traders think, is when you’ll start to make consistent profitstrading the markets.

Don't make excuses to not trade 

Just like I didn’t make an excuse to not gym, you mustn’t find an excuse to not take a trade.

I know your money is on the line and so, it’s normal not to want to take trades in general.

But if a trade lines up for an entry, according to your trading strategy, don’t think twice.

TAKE THAT TRADE!

Sometimes, you'll find the trades that don't look like winners at first are the ones that bring you the most profits.

I don’t want to hear these excuses:

•             Everyone is selling in the market and so, I don’t want to buy

•             I don’t feel like trading today!

•             It’s my birthday, so I don’t have to trade!

These excuses will build until you get to a point where you never take any trades.

If you have a proven and tested trading strategy, stop making excuses for not taking the trades!

Sure you’ll lose occasionally, but that’s how all trading strategies work.

And if you feel nervous about losing too much money in any trade, then risk less! You’re in control of your own trading portfolio and future.

If you keep taking those trades, your winners will outstrip your losers.

So, to sum everything up…

Don't worry about what other traders are doing and stop making excuses to not trade. Only then, will you succeed as a trader!

“Wisdom yields Wealth”

Timon Rossolimos

Don't forget to like these two pages on Facebook for awesome trading tips and Facts about life!

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Welcome to Trading Tips TV!

You're about to discover what no books, no person, no school will ever teach you about making money from the markets!

I’m about to turn 11 years of trading experience into a FREE 5 minute lesson for you every week!

Trading Tips TV is a completely FREE service. On this channel, I’m going to show you how you can get started and bank a second income trading the markets.

I’ll keep you updated with what’s influencing the market. I’ll share strategies, tips, tools, tricks and secrets, that you won’t find on Google!
Every week you’ll discover new trading ideas, such as

• How you can bank gains while the Stock market falls down the crocodile's mouth!

• You’ll discover the best profit opportunities from top trading experts from around the world!

• How to bullet proof your trading portfolio.

• Why rocky marriages and heritage values mean double-digit gains for traders!

• What Joan Rivers and Robin Williams can teach you about trading success.

You’re going to get all of this trading information, that you’ll never find anywhere else – Right here on Trading Tips TV.

I look forward to help guide and motivate you to become the next best trader.

Now all you have to do is click on the button right here, and subscribe, this way you’ll never miss one of our Trading Tips videos ever again!

                 

Until next time, "Wisdom yields wealth".


Timon Rossolimos

Don't forget to like these two pages on Facebook for awesome trading tips and Facts about life!

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How to trade like a Braai (barbeque) Master!

Last week Wednesday, as I was researching braai tips on Braai Day, I came across a world class braai'er!

You'll never believe this!

Braai Boy (Gareth Daniell) broke the Guinness Book of World Records for the longest continuous braai.

He braai'ed for a staggering 62 hours NON STOP!

As I was reading about his techniques and tricks, I couldn't help but think how similar it is to the way I trade.

In fact, I compared his braai'ing style to one of my most profitable trading strategies I have today.

Sound delicious?

Know your timing or you could burn your portfolio!

Gareth (Braai Boy) says that timing is crucial when you put your steaks on a braai. He says you should be able to put your hand over the fire, for five seconds, without burning yourself. And the coals must be only grey.

And just like timing is important when you braai, so is when you take on a juicy trade!

You see, the trick is to be patient and wait for that trade to line up according to your profitable trading strategy.

If you time the trade right you have a higher chance of it turning out to be a winner.

Too many ingredients can be the WORST for your results!

Gareth says that you mustn’t feel the need to spice and marinate your meat too much. He says salt and pepper does the trick, every time!

And so he only uses few ingredients to flavour the his steaks, and so should you when you trade.

Traders think they need many monitors, plenty of financial instruments and tons of trading books on their desks. But this can actually cause you to ruin your trading account.

Looking at too many monitors can be stressful by having different charts up at any one time. If you’ve just started out trading, then two monitors are all you need to monitor your charts. And another to put in your prices and check your trading account balances.

And second, you must choose between a selection of financial instruments to trade rather than just trade everything…

It’s exciting to know that there are countless opportunities to trade from in different markets, but this just leaves you with more work you don’t have to do!

Rather, sift through these numerous markets, then work on and sharpen your strategy skills in just a few months that will suit your trading style.

For example, I only focus on twenty of the top 40 companies using CFDs, and that’s it…

So, next time when you’re out with your mates having a braai, not only will you braai the best meat, but also you’ll also know the way to trade successfully…

Always remember,

“Wisdom yields Wealth”

Don't forget to like these two pages on Facebook for awesome trading tips and Facts about life!

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What is the best Forex indicator in the world?

"Which is the best technical indicator I can use when trading Forex?"

This is a question, I get asked at least once a month!

There are a deluge of different technical indicators to choose from, which can help you towards your Forex trading success. 

You get traders that recommend indicators like the Stochastic, The MACD, Bollinger Bands, the ADX, blah blah!

Don't worry about any of these jargon terms, because you don't need them to make money in the Forex market! 

Many traders try to incorporate over three or four of the above indicators and try to develop the perfect strategy, and I have a HUGE problem with this!

Let me explain…

Amateur Forex traders are trying to find a sure-fire indicator that will always win!

Most Forex traders start-off by learning how to use these indicators.

But what they don’t do is, take the necessary time to learn the meaning of each one.

They all try to find that sure-fire indicator which will bring them only winning trades and 100% success rate.

Well let me tell you this.

In a $5 trillion a day industry, I can promise you now, NO ONE can ever predict the market with exact certainty, especially with the Forex market.

Every “killer” indicator is history!

This is probably the most important factor you must consider, when you choose to develop a Forex strategy.

No matter what “killer” indicator you choose, they are all based on historical data.

I honestly cannot think of one indicator in this world that has any form of predictive qualities, and if you find one, please let me know…

How on earth, can we ever predict where the EUR/USD will be going when millions of traders are buying and selling the currency pair at any one time?

Not only that, but there are countless economic, political and socio factors you have to consider, with any one currency pair.

Let’s say, that we had a miraculous computer that takes in every factor that causes the currency pair to move.

Well even with every factor and strip of data your computer has assimilated, it’s still based on historical data!

So if you can’t predict the Forex market with an indicator, what can you do to make money?

When I make any Forex trading decision, I solely depend on one thing…

The trend.

If I see the EUR/USD is going up and has been going up, then I’d rather follow the direction of the trend rather than trying to predict a turn.

The probability that the EUR/USD will continue to go up is higher than the probability of it turning down.

So why go against it?

Always remember, "Wisdom yields wealth"

What do ripped abs, solid pecs and a V-shape body, have in common with successful trading?

I was at the gym yesterday and I couldn't help but feel jealous. 

You see, I like to gym at least four times a week, and have been doing so for the last 12 years. 

And yet, when I look at the body builders that train at my gym, it looks like they're competing for the world champs. I have to admit, every time I see these body builders, I feel inspired to work hard and achieve my own goals no matter what it takes!

Do you think their ripped abs, solid pecs, and V-shape body formed overnight? 

I don't think so! It takes discipline, perseverance and sacrifice to achieve their training results. 

And the same goes with trading! Let me explain…



A successful trader should take notes from a body-builders dedication!

A body builder’s lifestyle is nothing more than full on dedication! They follow specific eating plans, proven weight training programmes and cool down protocols. They keep strict discipline with their body building routines and follow a specific lifestyle routine to help achieve their dream bodies.

And just like a body builder has specific routines with their training, so should a profitable trader.

Every day, you should have a specific routine to follow when you’re looking for trades.

Choose a time when you’re not distracted, to search for high probability trades every single day.

For example, every night when I get home from work I load up my trading charts and carefully scan through my entire watch list. I do this to see, if any trades are lining up for tomorrow. Then set your entry, stop loss and take profit levels.

Make this a routine and you’ll see how your trading will be less stress full and easier to follow your trading rules. And you can carry on with your primary job while your money makes you money in the stock market.

Keep following this routine strictly and you’ll start to see great returns from your portfolio!

Lift heavier weights to become even bigger!

Sorry to say this but, if you want to be a HUGE body builder, picking up 2kg weights at the gym your whole life, isn’t going to get you far.
I’m the proof!

For the last eight years at the gym, I’ve picked up the same kilogram weights with careful technique, and nothing has changed. I’m still where I was, eight years ago!

Even with the right meal plan and correct sleeping routines, body builders push themselves and lift heavier weights. This way, they allow their muscles to tear and regrow even bigger and stronger than ever.

With traders, unfortunately you need to trade bigger to become richer.

WHAT? SO I HAVE TO RISK MORE?

No! Let me explain this with an example.

Let’s say you started off trading with R30,000 and you only risk 2% of your portfolio per trade.

This means if one trade goes against you, you’ll only risk R600.

Over the next nine months, you grow your portfolio to R39,000.

You need to see your portfolio for what it is, and not what it WAS. And so you must adapt to your new trading portfolio balance of R39,000, and not what you started off with (R30,000).  

And nothing else changes! You must still follow the 2% rule where you’ll risk R780 per trade (R39,000 X 2%)… When you risk more, you need to buy more which means, your potential winnings will be much bigger.

This way you can gradually grow your portfolio as fast as a body builder builds his torso!

Top body builders don’t over train and you shouldn’t overtrade!
Professional body builders, as much as they push very heavy weights, know their limits.

They know when to rest, number of hours they need to sleep and the days they should take off training to make them achieve their dream body goals.

Traders might not train, but they do trade. And over trading is probably the biggest reason for a trader to go bust.

The trick is to not have too many positions opened at once. You never know when there’ll be that next financial crisis, where you’ll bank losses after losses.

As a trader, you should never have more than 3-4 trades opened at once. This way you’ll still have a comfortable amount of money you can risk. And you’ll feel less stressed knowing, you only have a few trades to keep an eye on.

You can clearly see that if you apply the mental focus, strict discipline and lifestyle of a competitive and professional body builder, you too can beef up your trading success BIG time!

Always remember, “Wisdom yields Wealth”