Wednesday 9 September 2015

Testimonials: What my dear readers have to say about Just a lil Trading Note and Trading Tips!

Here's what our loyal members have to say about:

 
“Speaker clearly knows what he is talking about. He kept the attention of everyone. Presenter very energetic and kept attention. ” – Corrie Bezuidenhout

“Very informative and well presented” – Roy Draper

“Information was valuable and gave one insight on Forex trading” - Mkhusele

“It is one of the best as I have attended few others” – Alpheus Matuie

“Very interesting and educational” – Carrel Hanoke

“He is very knowledgeable about his trade and can transfer his knowledge.” – Jan Ehlers

“Eye opener about Forex market. I think I can place a trade now” – Protas Phili

“Simple explanations for a difficult field” – Koos Visser

“The speaker is very knowledgeable on various topics covered, Esp referring from personal experiences” – Sello Pitso

“Good voice and knowledge of Forex.” – Daan Swanepoel

“He is an excellent speaker. Food – excellent.” – Dirk De Klerk

“Timon is very confident with presenting and the event was very informative. I can start trading now” - Abdulaziz

“It was worth the time, friendly and easy to follow” - Solomon Mashakam

“It was run very well and with lots of detailed information taught in a simple way” - Brandan Rakusin

“Brilliant, just brilliant and it met every expectation.”-  Victor Magwaza

“The confidence inspired me and now I have a good understanding on what Forex trading is all about.”-  David Davey

"Thank you for your speedy response, the information you have given is worth gold and I hope to implement it by month end  I can start
trading now.” - Abdulaziz

“It was worth the time, friendly and easy to follow.” - Solomon Mashakam

“It was very informative and is a must have product.” - B. Mokoke

“Brilliant, just brilliant and it met every expectation.” - Victor Magwaza

“The confidence inspired me and now I have a good understanding on what Forex"

"Just a note of appreciation Timon, on your money management(Risk calculator)tips on the CFD's. You helped me to better understand and manage my losses by your stop loss tips and how much of my portfolio money i should risk losing. I used to just dive head on when trading and worry about the rest later which now i realise was very foolish."

“Timon is very confident with presenting and the event was very informative."

"trading is all about.” David Davey

"Thanks Timon. You are a great mentor. Keep well." - Chris

“I could never time market entry correctly before. This workshop has helped me to identify the positions! My overall impression of the workshop: 9.5/10!” - Thys Uys

“Very informative, and very intense! The examples were ‘real world’ and the workshop definitely met my expectations” - Pierre Duvenhage

“Timon explains technical terms in a simple way. He gave clear techniques without cluttering my mind with any confusion. I give the workshop 10/10 - Excellent!”- Herman Steyn

“The training was good and the speakers are very knowledgeable about the topics” – Zuko Mbele

“All can say as someone who has never traded is that now I am more confident to call a broker and start trading. I am more informed than ever.”  - Samson Molepo

“Very informative and helpful in putting the concepts across for the layman.” – Francis Hummund

“Both good speakers and their ability to explain topics and terms is very good. I understood all the terms and topics, both were clear and to the point on what they wanted to say. And I appreciated that. This is the first seminar attended which was explained so well. I expected to learn something new and the seminar delivered that.”  – Francisca Pretorius”

“Very informative and well worth it.” – B.J Van Niekerk

“Being a beginner/novice in CFDs it was great that they started from the basics and built on that.  Both presenters are clearly experienced and knowledgeable. The strategy was very clearly discussed and illustrated.” - Stavros Dalakas

“Wow it was mind blowing and insightful. It was worth it” – Celiwe Zulu

“Extremely valuable. Left me with a number of things to take home and use to my advantage.”- S. Meyer

“The speakers speak from experience and they are all active in what they’re teaching. All the questions I had were answered and the venue was clean, neat, practical, sufficient and well-catered”- Johnny Snyman

“A lot of clear and valuable information. Great presentations” -Herman Steyn

“I learnt a great deal. I’m now ready to trade seriously because I know where I went wrong.” -Yathawan Naransamy

“The seminar gave me courage to put more effort on Forex trading. There is also accommodation if the transport is not flexible. This means one can sleep over”- Bongani Ngaki

“Great. Everything was excellent! The Cup and W pattern were my best highlights” -Solly Molete

“The speakers were thorough with their presentations and I know more about the Forex market and charts”- Nolan Danster

“Perfect for beginner traders. Very simple and educational”- Munir Hagee

“Loved the Forex Fundamentals and practical examples shown” -Stephen Mamakoko

“Timon’s and Igor’s presentations were user friendly” -Enst Roth

“Practical examples were useful, thanks Timon” - Vivianne Jaques

“I had very little to no knowledge about trading Forex at the start of the day. But now I’m feeling very empowered” - Alison Darling

“Wonderful! The trading strategies were well explained” - Chris Sethusha

“The combination of three trading greats sharing the stage is what I liked best about the seminar”-  Chris Sethusha

“I got a lot of information and clarity on how to trade” - Marius van Rhyn

"This was an excellent start for me. It was easy to understand and approach" – Jacob Tau

"Timon covered everything for beginners" – Khela Mabewa

"Everything was explained clearly and to the point. Well done!" – Neerash Lutchmen (Durban)

"It was down to basics and easy to follow" – Theunis Botha

"You get everything under the roof. And I learnt how to open a Forex account and start with a demo account."-  Benjamin Mahunonyane

"Timon always makes everything understandable and easy to understand. Timon wanted to always teach us more. Timon as a presenter is always approachable and always providing helpful information." – Paul V

"It was an eye opener because I now know what to trade without fear. The atmosophere was marvellous and everything was explained brief and concise. "– Thupudi Abel Sesama

"Excellent, Timon. I have also found out that my mood has a significant influence on my trading results. Some days I am most certainly in the "wrong" mood. On other days I am in the "correct" mood and make the correct trading decissions." - D-R

"I feel blessed to come to this seminar and I would like to be included in every seminar" – Mothofeela Lekeno

"It did exactly what was promised. I now have the tools to start trading . The best part is,  have future support in various forms. This is just the start."

"Great presentation, great venue, comfortable." – Tumislo Ngulube

"I gained a lot of basic information on trading Forex. I didn’t know anything about it before. The presentation was simple and clear ."– Anon

"I now know where to start and which platforms to use. Everything was very informative ad most of all I got a strategy to use for FREE." – Simphiwe Mashinini

"Timon is very knowledgeable and makes his presentations very simple and easy."  - Amdami

"Very informative and interesting It opened my eyes as to what’s happening in the Forex market." - Joha
 
"Thank you for your speedy response, the information you have given is worth gold and I hope to implement it by month end." – P
       
“Just a note of appreciation Timon, on your money management (Risk calculator) tips on the CFD's. You helped me to better understand and manage my losses by your stop loss tips and how much of my portfolio money I should risk losing. I used to just dive head on when trading and worry about the rest later which now I realise was very foolish.”
     
   “All can say as someone who has never traded is that now I am more confident to call a broker and start trading. I am more informed than ever.” Samson Molepo
      
  “I’ve learnt a lot not only in CFDs but in trading in general. I’m glad that big emphasis was placed on risk management.” – Anon
       
“Thoroughly enjoyed your webinar. You came across very well” – Anon
       
“Timon explains technical terms in a simple way. He gave clear techniques without cluttering my mind with any confusion.” – H.S
       
“Hi Timon, I just make R2,800 in 2 days on your recommendation Bravo!!!! Send more tips!!! Regards Mario”
       
“T, I’m loving your videos bro. Keep them coming!” – J
       
“All can say as someone who has never traded is that now I am more confident to call a broker and start trading. I am more informed than ever.” – Samson
       
“Hi Timon. Thanks for giving us something for free. My confidence in FSP has been restored” – A.M
       
“My first trade gave me R35,000 exluding my initial investment. I will recommend you to any person who is serious about making money and a lot of money” – V.N
 
“Dear Sir, Tim is an excellent trader who is cautious, methodical, dedicated and inspirational to fellow traders. He sticks to his trading plan and has excellent money management skills.It is always a pleasure interacting with him as a fellow trader. His advice is normally excellent and he is not a risk taker.” P.S
       
“Timon is very confident with presenting and the event was very informative. I can start trading now.” -  Abdulaziz



Always remember,

“Wisdom yields Wealth”
 trsig.jpg

Timon Rossolimos

Senior Editor:  Trading Tips
Head AnalystRed Hot Storm Trader
Author:          94 Top Trading Lessons of All Time


The most accurate trading indicator predicts an 11.8% rally on the JSE!

Today I'm going to show you how one scarily accurate indicator, predicts an all-time high rally ahead for the JSE.

And if you play things right, you can end up making a very hefty profit. 

And please don't be concerned about the technical terms. By he end of this newsletter, I'm going to make sure you understand everything.

Now, let's see why I expect the JSE-ALSH to go up 11.80% to an all time high.


The RSI indicator tells you which direction the market is more likely to go next

To put it simply.

The RSI, or the Relative Strength Index, is a technical indicator that looks like a squiggly line.

Basically, this line will tell you when a market is over-priced (overbought) or underpriced (undervalued).

The RSI is a closed indicator which ranges from 0 to 100. This means that you'll see the squiggly line jumping up and down between this range. You'll see why this is important in just a minute.

Ok, so there are three levels on the RSI I want you to remember.

  •          70
  •          50
  •          30
When the RSI squiggly line hits the 70 mark, it means that the price of the market is considered overpriced or overvalued.

When the RSI line touches the 50 mark, it means that the index is fairly priced. This is where the RSI normally oscillates around.

And when the RSI line goes on or below the 30 level, we say that the price of the instrument is undervalued  or "underpriced".

This is all going to make sense in a minute.

To help explain this better, let's take a look at the JSE-ALSH  with the RSI at the bottom of the chart.

The three crucial levels you need with the RSI 
jsealsh rsi.jpg
In the above JSE-ALSH chart, you’ll see the three levels indicated in Red(30), Blue (50) and Green (70).
 
The RSI is telling us that the JSE-ALSH is ready to rally to an all-time high from here!

jsealsh rsi lows on rsi.jpg


What you’re seeing is the JSE-ALSH chart and below it is the RSI indicator.

From May 2015 untill August 2015, we’ve seen the JSE-ALSH make lower lows. We’ve seen it drop from 51,000 down to 49,612 down to 46,530.

But now compare it to the RSI.

The first low of the RSI went to 27. The second RSI level touched 30 on the dot. And the final RSI went to 29.

This means that, the RSI has been touching, more or less, the same level on the low, while the ALSI has been making lower lows.

This means there is a bullish divergence between what the JSE is doing and how the RSI is moving.

So what does that mean?

It means that the RSI is showing that there is upside momentum in the making, which could send the JSE-ALSH up from here.

Next let’s look at what the RSI has been doing in terms of highs.

The RSI is ready to break out of the downside and rally once again

 jsealsh rsi highs.jpg


At the moment, you need to keep your eye on the 50 level mark on the RSI.

Since, May 2015, we’ve seen the RSI make lower highs. 

Granted.

But look where the RSI is at the moment? It’s at 47.12 which is around the 50 level mark.

Now just to remind you… The 50 level mark is where the price is fair valued generally.

But here’s the thing. The RSI has been showing a bullish divergence which means that it’s favouring the momentum to the upside.

And just like skating on thin ice, leads it to a break eventually. With the RSI, the same thing applies to the resistance (purple line) on the RSI. It leads to a break out as well.

The more times the RSI touches the purple line, the weaker it becomes.  

And so, it looks like the RSI is ready to break to the upside, above the 50 level.

Once it breaks, the JSE will follow suit and will go to the first target at 52,000.

If the JSE breaks above the 52,000, then it’s next pit-stop could take the JSE-ALSH to all-time highs at 55,321.

Always remember,

“Wisdom yields Wealth”

tr.jpg 

Timon Rossolimos

Senior Editor:  Trading Tips 
Head AnalystRed Hot Storm Trader
Author:          94 Top Trading Lessons of All Time 

PS: Finally, part 3 of the "Eurozone Debt Crisis: The next stock market crash is available...
Enjoy watching the final part, by clicking on the play button below

Friday 4 September 2015

Thursday 27 August 2015

This man lost $4 billion this week, and he's still not worried!

On Monday 24 August 2015, a few things happened:
•          Stock markets crashed over 3% worldwide 
•          Traders wiped out their accounts
•          Trillions of dollars have been lost 

And Warren Buffett, CEO of Berkshire Hathaway, lost $4 billion this Monday. 

How would you feel if you lost that amount of money?

Warren Buffett lost all of that money and yet he still sleeps easily, doesn't flinch at the sign of a market crash and always lives his life to the fullest. 

Here's why!

The greatest investors in the world don’t sell their stocks in fear!

The greatest investors in the world, like Warren Buffett, know that the markets swing up and down on a day to day basis. 

They also know that there’ll be an occasional crash, recession and market correction. 

If these investors based their buy and sell decisions on stock price movements, I can assure you they wouldn’t have 1/20th of the money they have today. 

Greatest investors like:
~ Ray Dalio (Founder of the investment firm Bridgewater Associates)
~ Bill Ackman (CEO of Pershing Square Capital Management), and
~ George Soros (Chairman of Soros Fund Management)

Base their buying and selling decisions on the underlying factors and fundamentals of the business, they invest in.

The reason they buy stocks is because they see a bright future for the company. 

And with careful stock validations on the micro aspects of the company, they know they will be rewarded in the long run by holding onto their stocks. And because they stick to their plans, without being swayed by fickle market sentiment, they end up achieving investment returns that stock price investors can only dream of. 

But why do these investors sleep easy during these rough times?

This brings me to a very important point. 

When I say $4 billion, it sounds like a lot of money right?

But this is money that these billionaire investors can afford to lose. 

Warren Buffett today is worth $66.7 billion. This means, his portfolio is down 5.9% ($4bn ÷ $66.7bn). 

When you were down 5.9% in your portfolio, how did you feel?

Well, not too bad right?

Because you still have 96% of your portfolio left to trade. 

And so, this is how you should think about money when it comes to your investing and trading. 

Look at how much you can make and lose in percentage terms.

The idea of how you make or lose, will fade away. All you have to think about is, how much money you want to make relative to your portfolio. 

Investing and trading is a psychological game, and this is the first most important thing you need to master. 

And so today, I want you to do something for me. 

Before you place another trade, decide how much of your money can you comfortably afford to lose per trade. Make sure the amount you lose is easy to handle.  

It might be R50, R500 or even R1,000, that you’re prepared to lose. 

Once you can answer this question, then you’ll be able to trade more easily, more effortlessly and more rationally. 

I want nothing more than for you to sleep easy, no matter what the market is doing.

In fact, today’s mailbag is all about you. 

And so I’m going to ask you a question today! 

I want to help you achieve the life you’ve always dreamed of

Trading Tips is a platform that we started to help traders like you make an income in the markets, so you can live the lifestyle you've always pictured yourself having.

I'm talking about having enough money to:
luxury-images3.png


  • Drive to any restaurant of your choice for a gourmet dinner
  • Not having to look at the price of the juicy rib-eye beef steak on the menu 
  • Paying for all your guests at the restaurant, without counting the rands and splitting the bill
And having this experience, month after month! 

To help you achieve this freedom , I want to understand why you want to make a second income trading the markets. 

So what I want, no..

What I NEED, YOU to do is this. 

I want you to just answer this one simple question for me.

“If you had R1 million profit in your trading account, how would you spoil yourself (or your family) with your money?”
I need you to CLICK HERE and answer the question now.

When I see exactly what you want in your life, I can start writing about what you need to do, step-by-step, to achieve your dreams. 

I know 90% of my readers won’t give me an answer. In fact, only the most passionate people that want to change their life will contribute and tell what they’d love to spend their trading profits on. 

And it’s ok… But even if I can help just 10 people achieve their life long-dreams, I’ll feel like Trading Tips will have been a well worth journey for them and myself. 

Let me repeat the question again:

“If you had R1 million profit in your trading account, how would you spoil yourself (or your family) with your money?”

I look forward to hearing your answer by Click here

Always remember, 

“Wisdom yields Wealth”

 trsig.jpg

Timon Rossolimos

Senior Editor:  Trading Tips
Head AnalystRed Hot Storm Trader
Author:          94 Top Trading Lessons of All Time
PS: Thank you to all of our loyal Trading Tips members!

I’ve compiled a collage of some of my most loyal members who’ve attended our events over the years and posted it to our Trading Tips Facebook Page.

Go "like" the page and tag yourself in the image. If you dont see yourself then make sure you come along to our next meetup to change that! 

Tuesday 25 August 2015

If your heart rate goes above 70 when you look at this, save your portfolio by doing this one thing!

Yet another blood bath day for the JSE.

The JSE is down 4%, as I write to you, today (24 August 2015).

This means, the JSE is down 8% for the month.

We saw the JSE smash through that 49,605 level I told you it was going to hit last week

So as traders, what can we do to protect our money in these horrific times.

This heatmap is more like a Hell map!

blood bath 24 august 2015.jpg 


If the heatmap is new to you, then this might be scary to look at.Simply click here to find out exactly “How a Heatmap works on the JSE”.

Once you’re clued up then come back so you can see what I have to tell you today.


Ok now that you know what a heatmap is, it shouldn’t be scary anymore.

It should be frightening!

We're seeing majority stocks on the JSE highlighted in light red. This means, we’re seeing them fall out of their cots.

Here are a few examples:
  • MTN down 8.10%
  • Grindrod down 3%
  • Sasol down 4%
  • Netcare down 4%
  • PPC down 5%
  • Implats down 5%
  • SAB Miller down 5%
I can continue, but I don't want to scare you off.

And here’s the funny thing. Gold stocks are up around 3% today on average.

You can see the only section where the rectangles are highlighted in light green, those are gold stocks.

So the world markets are crashing under your very eyes.

Now I’m going to ask you an emotional question

But before you answer, I want you to do a little test for me. I want you to count your pulse on your wrist for 30 seconds while you look at the heatmap…

Then multiply that number by two, so you can tell me what your heart rate is per minute.

I’ve recorded mine and it’s come to 72 beats per minute.


Ok so now for your question. And this you must answer this in your head or, ideally, to me at InvestorsClub.co.za.

How does looking at this heatmap, make you feel?
  • Scared
  • Worried
  • Confused
  • Uncertain
It makes me feel anxious and nervous.

In a huge market like the JSE which trades around $200 billion a year, anything can happen.

That’s why I have a very powerful rule I use when I trade.

I call it, the stay away rule!

It’s very simple. If I see a market go up or down 3% in a day, I stay away from that specific stock.

The reason is very simple.

The market moves on average 0.5% to 0.8% a day. And this applies to an average blue chip stock.

So, as soon as a stock moves up or down 3% in a day, there's a shift from the normal to the erratic.

And this isn't what you want when you trade.

You don’t want to get into trades when the market is being too bouncy and erratic.

The exact same thing happened in the year 2008, and it’s happening again.

So it’s better to do nothing at all than to do something stupid.

I really hate being the bearer of bad news.

I want the market to turn up, I want you to get into some profitable trades. But unfortunately, I need to show you what's happening in the market. And what you can do to protect your portfolio during these times.

Have a wonderful day and thank you for taking just a few minutes to hear what I have to say.

When our heart rates are below 70bpm again, I’ll be sure to show you the best profitable trades out there.

But until then,

“Wisdom yields Wealth”

trsig.jpg
Timon Rossolimos

Senior Editor:  Trading Tips 
Head AnalystRed Hot Storm Trader
Author:          94 Top Trading Lessons of All Time

PS: If ever you’d like to see what the heatmap looks like on the JSE on the day, feel free to ask me on the InvestorsClub.co.za… It’s very handy and gives you a good feel, what’s going on in the market. 


Thursday 20 August 2015

A selfie at the Forex 101 Workshop - Spot yourself!

On 15 August 2015, FSPInvest.co.za held the first Forex 101 Workshop.

And the first thing I did when I took the stage, was take two selfies with the audience.

What a way to start right?

I mean, if Ellen DeGeneres can take a selfie at the oscars, Jimmy Fallon (host of the Tonight Show) can do it and even Barack Obama, why can't I?

If you're a little upset that you're not in the photo because you couldn't join, then I have something special for you that I've kept a secret until now...

Here are the selfies I took - see if you can spot yourself!


If you're a little upset that you're not in the selfie because you couldn't join us last weekend, then click here - I have something special for you that I've kept secret until now...

That’s all from me today. You can continue to enjoy your weekend.

“Wisdom yields Wealth”
trsig.jpg
Timon Rossolimos
Senior Editor:  Trading Tips 
Head AnalystRed Hot Storm Trader
Author:          94 Top Trading Lessons of All Time


This is the most hated currency right now

Dear trader,

Not many things make my blood boil, but this week's been a monumental exception.

We've seen:

~ Oil crash below the $50
~ Commodity prices continue to make new lows
~ The dollar keeps getting stronger and stronger
~ Greece has accepted a bailout after they had a referendum to vote against any government interference!

By now I probably sound like a broken recorder, because there is nothing new in that list I haven't told you about before.

However, just as it looked as if things couldn't get any worse, they just did.

One currency has just been devalued AGAIN. And it's lead to our equity market crumbling down for the week!

In fact, many companies crashed over 3% on Tuesday alone. And that's when we thought the recovery was on its way.

Well think again, because right now people hate this currency…


The China’s Yuan is sending negative shock waves throughout the world!

There seems to be major concerns about the economic health in Beijing. China decided to devalue the yuan renminbi by 2% on Tuesday.

This is the the biggest devaluation under the currency regime since it started in 1994.

Here’s the thing. You know how just about anything you buy says it is “Made in China”?

Well, what you see and what is actually going on, is sometimes just an illusion.

Let’s talk a bit about China’s expansion rate to see what’s going on.

In 2014, the economy expanded at a rate of 7.4%. This is the slowest level in decades. And according to official data, it looks like they’ll log 7% growth this year.

China’s exports dropped 8.3% last month. And the people at the Bank of China says the strong yuan is putting a lot of pressure on exports. So it’s evident the overall growth in China’s economic situation has been sluggish. So theoretically, the devaluation in the yuan could actually help China’s recovery and help boost growth.

In the midst of all this turmoil, what can we do?

Well when it comes to trading, we have a saying.

“Even being neutral is a position.”

And when you’re neutral, you do one thing…

Nothing.

This is the time when you should just let the financial storm calm down before you do anything. Right now you should rather sit, observe and evaluate your portfolio and your trades. 

But I'm not telling you to close any of your trades. But if you do have any open ones currently, make sure that your stop losses are in place. This is in case we have another unprecedented market strike. 

And if you don’t have anything invested, then maybe look at markets that are not prone to fall 3% to 5% in a day.

For example, you can look at how the major currency pairs are doing in the Forex market. 

By major currency pairs, I mean the euro, US dollar, rand, yen and the Great British pound.

Whatever you do, please think with a rational and logical point of mind. Don’t think about what money you can make but rather what you can lose.

This way you'll always think about the realities of growing your portfolio rather than the fantasies. 

“Wisdom yields Wealth”

trsig.jpg

Timon Rossolimos 

Senior Editor: Trading Tips 
Head Analyst: Red Hot Storm Trader
Author:          94 Top Trading Lessons of All Time

Part three is coming up next week, so if you haven't watched part two, you don't have much time
The Eurozone Debt Crisis: The next stock market crash (Part 2 of 3)


youtube thumbnail - the eurozone debt crisis
the next stock market crash part 2.png
_________________________________________________________________

Wednesday 5 August 2015

I warned you about this gold crash two years ago. And now I'm warning you again!


Dear trader, 

On 27 November 2013 I wrote an article saying.“Gold is definitely not your safe haven in South Africa”. 

I told you that a sideways range had formed between (3,282 and 1,376), and the next target was for the JSE-GOLD index to drop to 800…

And that’s exactly the level it hit last month. But just because it hit that level, doesn’t mean you should just buy gold now because it’s cheap.

The problem is that the JSE-GOLD index has broken yet another extremely important level.

And looks like its next down leg could be at 206.27. That is another 72.76% potential drop on the cards.



So to sum up this scary story, the gold index next stop could be at 206.27 which is another 72.76% drop.




trsig.jpg

Timon Rossolimos
Managing Editor: Trading Tips 
Head Analyst:     Red Hot Storm Trader
Author:              94 Top Trading Lessons of All Time

Facebook    Twitter    YouTube
Watch the latest video from Trading Tips TV
The Eurozone Debt Crisis: The next stock market crash (Part 2 of 3)

youtube thumbnail - the eurozone debt crisis
the next stock market crash part 2.png 

My BIG prediction where gold is going!

Johannesburg, South Africa
Timon Rossolimos, Managing Editor Trading Tips

Dear trader,

This year alone gold has dropped over $200. And all those gold bulls you hear on CNBC and in the newspapers are in trouble.

You know I don’t understand these golden bulls. They try to convince you to buy gold and sell everything else. It’s gotten to the point where their EGO is more important than what’s actually going on.

But hold on, with a pompous headline like “My big prediction where gold is going”, how do I differ to the others?

Well, first let give you my prediction and then I’ll tell you why I'm confident about it.

Gold is set to drop another 35%
gold is set to drop 707 dollars.png
There are two things I want you to look at in the chart above.

The horizontal black line, at $1,196.31, shows you a strong support level. You can see that gold has been bouncing up and down this significant price in the last five years.

And second, the red line ($707.66) which was gold’s previous support level.

In technical analysis terms, you have what’s called the bull market, which is the up market. You have the bear market, where the price goes down. And you have the consolidation phase.

The 12 year bull market came to an end

You know the saying. Past performance means nothing for the future. This applies to not only with trading but with pretty much everything in life.

(If you can think of anything this rule doesn't apply to, please tell me at the Investorsclub.co.za)

Back when I was in university, my colleagues told me to buy gold because it’s one metal that keeps going up.

I looked at the chart, and they were right.

This is the chart I saw from 2001 to 2008 (While I was finishing my studies at Monash University).

The “everlasting” gold bull run
golds bull market 2001 to 2008.png
Looks like a healthy trend? Definitely. It just kept going up.

But commodities, just like any other financial instruments are driven on one thing:
Supply and demand.

As the price of gold went higher and higher, it became more expensive. So, eventually, demand had to saturate. Why? The price of the metal ended up overvalued (overbought), And when this happened, you had to expect a drop in the gold price.

Take a look here to see what happened next.

Gold’s big 42.71% crash in just three years!

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In just three years, gold plummeted 42.71% from $1,901 down to $1,089.

Today the supply (selling pressure) for gold is still on. And its momentum is on a one way trip back down.

To make matters worse, the gold price broke through that crucial $1,196.31 support level.

Now that gold has broken below this level, it looks like its next down leg, is on its way.

I expect gold to fall to $707.66 next. That’s another 35% drop from here.

If you’re an investor, I’d leave gold alone as long as the price is in a downwards trend. I’d also leave the gold stocks alone as the JSE-GOLD index follows suit with the gold price.

If you're interested, Click here for the JSE-GOLD index

And finally, I need to mention something quickly.

How does my prediction differ from others?

Sure, I’ve made a big prediction based on technical analysis tools I’ve been using for the last 12 years. But there is a big difference between my prediction and the claims of the gold bulls.

What happens if the gold price miraculously turns back up and breaks above $1,300?

Simple… I’ll swallow my pride, re-analyse the chart and I’ll tell you I’m wrong.
Not only that, I’ll then base my next prediction on my new analysis, considering that gold has changed directions.

I don’t predict on what I feel, but rather on the direction of the trend.

You might call it a crystal ball prediction. I call it a high probability prediction.

If I’m right, then great you would’ve saved yourself from losing unnecessary money from buying gold.

If I’m wrong, I’ll tell you and will provide you with my next probability prediction.

Keep well and always remember,

“Wisdom yields Wealth”


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Timon Rossolimos

Senior Editor: Trading Tips
Head Analyst: Red Hot Storm Trader
Author:          94 Top Trading Lessons of All Time



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