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!

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

https://www.facebook.com/groups/secretsofastockmarket/

https://www.facebook.com/justalilfactpage?fref=ts

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

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

https://www.facebook.com/groups/secretsofastockmarket/

https://www.facebook.com/justalilfactpage?fref=ts

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 

https://www.facebook.com/groups/secretsofastockmarket/

https://www.facebook.com/justalilfactpage?fref=ts

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”

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

https://www.facebook.com/groups/secretsofastockmarket/

https://www.facebook.com/justalilfactpage?fref=ts