Lesson I The way the Markets operate.
The Dow closed over 20,000, the Nasdaq is projected to hit 7,500 in 2018. The S&P 500 is on track to hit 3,200 by June of 2018. Those are just the major U.S. Indices. The Nikkei 225 in Tokyo closed at 18,918 and will hit 21,000 by December, the DAX in Frankfurt will close over 12,000 at some point this month. And we haven't even discussed emerging markets like Brazil, Russia, and India.
"The bull run in equities has been driven by the top ten percent, there is so much more room to grow as the globally recovery picks up steam. I urge hard working Americans to start, with what ever you can, so you can profit for your retirement." -Bob Pasani, he is a well known and trusted analyst on CNBC.
I trade Stock options, I buy Futures contracts, and I trade Forex, the valuations of currencies against each other. It may seem irrational and hard to comprehend at first, but there is a method to the madness. Why else did the dollar index tank yesterday despite an awesome jobs report, beating estimates by over 40k new jobs in the market? To the average home gamer or technician it appears to be an inverse correlation, or plausible incongruity, due to limited buying with fears of Pres. Trump's uncertainty. The reason the dollar fell despite a favorable jobs report is because billionaire hedge fund managers are playing contrarian. They are waiting out some uncertainty and selling hard to protect their profits, all the while bleeding pension funds and 401K balances. These are the punks we are going to take our money back from!
The oldest and truest statement of the markets still holds true today, Buy low, Sell high. If a stock's price falls because they missed earnings and trade on a fair earning multiple (10-18 times futures earnings), then you buy.
If the dollar index is hitting support(low) and the Euro zone comes out with weak data you have a profitable trade set up with two powerful points of confluence, fueled by a sell of with weak data primed for a reversal to attract buyers at a low valuation and drive the price higher. If an asset is overvalued, it will hit resistance(high) and pull back, at that price there is now one left to buy, so people take profits, sell off, and the valuation crashes.
I want to help as many people as I can make money for their retirements, their families college funds, or so you can quit your job if you want to one day. I will be back with more on fundamental and technical analysis and algorithms that act as indictactors to critical buy or sell axioms.
Back soon my brothers and sisters in arms
Shadesmcfrankenstone
"The bull run in equities has been driven by the top ten percent, there is so much more room to grow as the globally recovery picks up steam. I urge hard working Americans to start, with what ever you can, so you can profit for your retirement." -Bob Pasani, he is a well known and trusted analyst on CNBC.
I trade Stock options, I buy Futures contracts, and I trade Forex, the valuations of currencies against each other. It may seem irrational and hard to comprehend at first, but there is a method to the madness. Why else did the dollar index tank yesterday despite an awesome jobs report, beating estimates by over 40k new jobs in the market? To the average home gamer or technician it appears to be an inverse correlation, or plausible incongruity, due to limited buying with fears of Pres. Trump's uncertainty. The reason the dollar fell despite a favorable jobs report is because billionaire hedge fund managers are playing contrarian. They are waiting out some uncertainty and selling hard to protect their profits, all the while bleeding pension funds and 401K balances. These are the punks we are going to take our money back from!
The oldest and truest statement of the markets still holds true today, Buy low, Sell high. If a stock's price falls because they missed earnings and trade on a fair earning multiple (10-18 times futures earnings), then you buy.
If the dollar index is hitting support(low) and the Euro zone comes out with weak data you have a profitable trade set up with two powerful points of confluence, fueled by a sell of with weak data primed for a reversal to attract buyers at a low valuation and drive the price higher. If an asset is overvalued, it will hit resistance(high) and pull back, at that price there is now one left to buy, so people take profits, sell off, and the valuation crashes.
I want to help as many people as I can make money for their retirements, their families college funds, or so you can quit your job if you want to one day. I will be back with more on fundamental and technical analysis and algorithms that act as indictactors to critical buy or sell axioms.
Back soon my brothers and sisters in arms
Shadesmcfrankenstone
7 年 前