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.