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:

• 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”

 

Timon Rossolimos

Senior Editor:  Trading Tips
Head Analyst: Red 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! 

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!

 

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”


Timon Rossolimos

Senior Editor:  Trading Tips 
Head Analyst: Red 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. 

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”

Timon Rossolimos
Senior Editor:  Trading Tips 
Head Analyst: Red 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”



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)


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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.

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

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

 

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%

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

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!

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”



Timon Rossolimos

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

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