The EASIEST way to trade/invest

I’ve wanted to post and publish this blog for a long-time but have held off, whilst I built the site up with useable content to trade and invest profitably.

I don’t need much written content for this blog entry as the charts describe exactly what I’m talking about.

What makes a market stop dead in it’s tracks and reverse direction?

If you knew with virtual precision what a market was likely to do and during what timescale then you could trade/invest in virtual confidence of your expected outcome, with limited interference by you in managing the trade!

Study the chart to see what I’m saying:

Now I have to admit that the standard content you’ll find on this site AND the standardised trading methods available from any trader/investor will not allow you to trade the easiest way!  Unless you know what makes those markets turn and reverse at certain points and times then you have no choice but to trade/invest from a standard set of methods!

The charts show you what every single trader/investor wants to know – WHEN the market is due to turn.

Obviously I am showing you this AFTER the fact – at this stage I am NOT saying you can do it, but I believe it can be done – I’m currently working through my recommended W.D. Gann Course and I believe that it really can be done!  Here’s the link to the Gann page Click here.

In the chart above you’d have shorted the first section for 108 trading days = approx 5 months for a profit of 19%

The second trading zzone would be to go long and that lasted 124 trading days = 6 months for a profit of 27%

So in the course of 11 months your stripped out approx 46% from that market – UNleveraged

This is not that bad a return for a years investment making just 4 trades (Sell, Buy then Buy, Sell).

The chart above shows you the IDEAL set-up, I can tell you that my recommended course on Gann, the person behind that nailed the bottom in August 2011 & the subsequent rise up into the April 2012 high!  Well when I say nailed it, their calculations where 0.8% wrong!  A prediction made 6 months prior and was less than 1% out!  That’s what I call nailing the market.

One of the questions you should be asking yourself right now is:

  • “If I can TIME the market and KNOW when a uptrend is likely to start, what options do I have to exploit the move”

The answer is leverage – If you know that a market should go up you could load up on leverage (obviously a stop has to be in place) This then could turn a 20% move into a 40%/60%/100% + move – if you can use leverage with your account.

The BIG caveat is that you have to KNOW for a fact that the market will turn on your expected date and until that date arrives you simply do not know for certain!

I’ve been looking into this as an easier way to trade my SIPP as I can load up the leverage by way of a Covered Warrant (like an option) which straight away controls the maximum loss on the trade to the amount invested in the Covered Warrant – all that is needed is to search for the best Covered Warrant to invest in for that time period.

As I said I am in the midst of learning Gann’s techniques, if you want the course I recommend then you can access detail through the link above.  Obviously if I find they way I will post a few links to prove it’s worth.

As W.D. Gann said “Everything can be proved with Science and Mathematics” and I can’t see any reason why that can’t apply to the markets.

The simple truth is if you KNOW the market should be in an uptrend from a certain date to a future date then price action should follow one of Gann’s Angles – which is exactly what occurred in the chart shown in this post – it followed Gann’s 2 x 1 Angle, this means that PRICE is moving at twice the amount of TIME, so If a 1 x 1 (45 degree) angle = 1 pt x 1 day, a 2 x 1 chart = 2 pts x 1 day etc.

Place a 2 x 1 Gann angle from the low in August 2011 and see where it AND price ended on April 2nd 2012! – If your 2 x 1 angle fails to hit the price on 2nd April 2012 then your charts are probably not squared out correctly – this is a complex thing to do for such a simple concept!

How did Gann’s Law of Vibration work?  As I’ve detailed above, He KNEW what the trend of the market was going to be for a certain time period, all he had to do was then work out which of his geometric angles was in play during that move and hey presto he knew in advance what price the market would reach – I am not prepared to reveal the underlying cause of the Law of Vibration – it’s detailed in my recommended Gann course (link here)

I have studied in depth Gann’s work for the past couple of years and I’m starting to get a grip of it, future posts will cover Gann and his methods. WHY?   Because in my eyes his methods were and still are the best way to trade

For those interested the Chart above is of the Dow Jones Index

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