Doctrader is here to help you find a better solutions for your long term financial wealth. If you have been a "buy and hold' investor for the last 10,20, or 30 years, it may be hard for you to understand that the financial world of investing has changed. The Market Media Matrix has everyone in it's grip with the by merging all informational sources into one big conglomeration. Narrowing your ranges of independent thought and creative ideas.
There are many financial tools available to you, through the internet and through this web site. Yet, despite all the available resources at your disposal, most people will not take the first step in changing what they have been doing financial. If by reading my thoughts and learning from my experiences (ie.mistakes) , I can get you mentally prepared for the next bear market, then my mission is accomplished.
Bear markets are not something to fear, unless you don't have a plan. Doctrader is dedicated to providing you with positive instructional material to make money in bear markets and bull markets. It is not difficult to learn, but you must take the first step to committing some time reading. Someone once said "education is expensive, but ignorance is priceless" It is hard for the average investor to devote vast amounts of time to find correct answers to the problems you will be encounter.
The Market Media Matrix has everyone in it's grip, and the informational sources are all merging into one big conglomeration of repetitive sources.
The first thing you should be wary of is too many experts saying the same thing. Everyone says the buy, buy buy, now is the time to be invested into the stock market. Things are not as good as they seem, nor as bad as they seem at any given time. The world is not perfect, and no one can predict the future financial health of the world's economy. The 'goldie locks' economy is a fantasy created by those who would like to "sell you something". The Market Media Matrix society that we live in today is competing constantly for market share. Their market share determines how much they can charge for advertising. The advertising revenue they are receiving from Wall Street Brokers and publicly traded companies has created a Market Media Matrix biased. The most famous myth about investing is the theory of "buy and hold" mentality. The Market Media Matrix urges the average investor to follow this un-proven theory. However, those on Wall Street never advocate this strategy for their own accounts. I want you to use this website for learning technical trading and using my simple approach to money management to increase your wealth in the ever changing world of financial services. You are capable of determining a market trend and to use common sense when making an investment decision for short term or long term.
Now, just take a look at the two charts below,
which one would you like to have as a long term investment.
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You probably picked chart # 1 right? Its OK, that's what most people like to see when the are considering a long term investment. Now, I would like to see the look on your face when I tell you these two charts are the same stock chart! If you were to buy stock in 1995 and held until December 2005 would give you the exact same results, a net gain of 200% over the last 10 years. Not bad, you say for a long term investment. Has your investment faired as well? I certainly hope so, this was a mediocre performance for one of the Dow Jones 30 stocks of the Dow Jones Index. What if I told you that in chart #2, I could predict the exact time of General Electric's stock price falling? What if I told you that you could have predicted the exact time of price failure too! Well, you could! That was a trick question, everyone knew the exact time the stock of General Electric was going to be cut in half. Now this simple example of showing you chart #1 or chart #2 can mislead you If you choose chart #1 for the time frame, you would have 6 times the number of shares of this stock today. However, if you followed my Harmonic Stock Clock signal lines, you would have 15 times the number shares today. A VERY BIG DIFFERENCE between Chart #1 and Chart #2! The first drop occurred in 1998 and the second drop in prices occurred in 2000. Most people, when looking at stock chart, especially on the internet are not aware of how stock splits impact your bottom line. Most new investors and traders only see the Chart #1 when investing their hard earned money. While the savy investor likes Chart #2 to maximize his gains.
Chart #1 is on of the first tricks that the Market Media Matrix has in its arsenal to convince you of the value of the "buying and holding" theory. The "buy and hold" theory has finally been dispelled with an article in New Week, in the December 19th, 2005 edition. The author of the article is Jane Bryant Quinn, who mentions a study sponsored by Towneley Capital Management, done by the University of Michigan School of Business. There findings say that $1 invested over the last 42 years in the market would accumulate a total $75 with dividends reinvested. What do you think about that return? The interest equivalent rate of return of 11% per year is not bad, is it? But let's compare that rate of return for missing the best performing 90 days of the last 42 years. If you were trying to time the market, as the article states, and you missed the best 90 days, your return would only be $2.70. Today, you cannot even buy a cup of starbucks coffee with the return on the dollar investment. If you can remember 42 years ago, what was the price of a cup of coffee? I found an old budget planner book from my parents house the several years ago, and you know what their monthly budget was? Their budget was $380 a month for everything.
So the Market Media Matrix wants you to buy and hold instead of timing the market for your investments. I have always asked the question, why? What happens if you miss the worst 90 days of the market? I find it amusing that the research study actually answered that question! It shows you just how condescending there attitude is concerning the average long term investor. The article in Newsweek explains if you would have avoided the worst 90 day of the market you would have $1694!
Choices A, buy, hold, hope for 42 years for 90 good days in the market, results $75.
Choice B, time the market yourself without a plan and miss the best 90 performing days, results $2.70
Choice C, use the Harmonic Stock Clock Common Sense Plan to avoid the worst performing 90 days of the market, results $1694.
Given the choices of A, B, or C, everyone would want choice C. So how does one go about learning how to time the market? The Harmonic Stock Clock uses simple rules to help you do your own market timing for your own stocks. How does the Harmonic Stock Clock help you do this?
The Harmonic Stock Clock uses special indicators developed out of an attempt to follow the intra day market trends. Using these special indicators will keep you ahead of the profit curve.
In my book, The Harmonic Stock Clock, I believe each trading day is a small sliver of the long-term trend. If you are long-term investor, swing trader, or day trader, the reasons of "why" may not be important, but the knowledge of cyclic market behavior can be used to increase your profits.
I have developed a trading system that allows for all types of traders and investors to profit by using mathematical formula to determine each market's harmonics for maximum profits.
Notice in the charts below, following my signal lines an investor or trader would go long when prices are trading above the green signal line and exit long positions when prices trade below the green signal lines. This simple plan can be applied to day trading, swing trading , and long term investments to maximize your profits and prevent avoidable losses. I explain the hidden market dynamics in all forms of trading and investing. You can use the simple Harmonic Stock Clock in any financial market, currencies, stocks, bonds, futures, and commodities.
The chart below is a 5 year history of Boeing's Stock price. Notice the descending green signal lines when prices are falling. Once the green signal line crosses upward through the red signal line, prices begin to climb higher.
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The chart above is a 5 year history of Procter & Gamble's stock price.
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The 9 year stock price history of the U.S. Dollar index, used by currencies traders.
Notice by selling at the top in 2002, investors saved money by not "buying and holding"
while prices were dropping to new multi-year lows.
Who Should Buy This Book?
Those who need maximum profits, minimum risk, must read this book to capitalize in bull markets and bear markets. For long term investors, my Harmonic Stock Clock will help you protect your hard earned profits before the next bear market begins. The next stock market correction could be the biggest one of all, everyone knows what goes up, must come down. You can avoid the down drafts by using the Harmonic Stock Clock as a market timing indicator.
It's not how much money you make, but how much money you keep that counts.
Do You Have a Plan for the Next Bear Market?
The Bear Market is coming, don't take my word for it, look has been sounding the warning!
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Alan Greenspan just said in his speech to National Association for Business Economics on September 27,2005,
'..history cautions that extended periods of low concern about credit risk have invariably been followed by reversal, with an attendant fall in the prices of risky assets. Such developments apparently reflect not only market dynamics but also the all-too-evident alternating and infectious bouts of human euphoria and distress and the instability they engender.'
Alan Greenspan also said in his Speech to American Bankers Association just one day earlier on September 26, 2005
'The apparent froth in housing markets may have spilled over into mortgage markets. The dramatic increase in the prevalence of interest-only loans, as well as the introduction of other, more-exotic forms of adjustable-rate mortgages, are developments that bear close scrutiny. To be sure, these financing vehicles have their appropriate uses. But to the extent that some households may be employing these instruments to purchase a home that would otherwise be unaffordable, their use is adding to the pressures in the marketplace.'
Greenspan issued his strongest warning to date about the coming "Baby Boomers"
Remarks by Chairman Alan Greenspan
Budget policy
To the Federal Reserve Bank of Philadelphia Policy Forum, Philadelphia, Pennsylvania
December 2, 2005
The actuaries' projections of Medicare costs are, perforce, highly provisional. These uncertainties--especially our inability to identify the upper bound of future demands for medical care--suggest significant prudence when considering spending initiatives.
New programs, whether spending or tax benefits, quickly develop constituencies who tend to fiercely resist any curtailment. As a consequence, our ability to rein in deficit-expanding initiatives, should they later prove to have been excessive or misguided, is quite limited. Programs can always be expanded in the future should the resources for them become available, but history has shown that they cannot be easily curtailed if resources later fall short of commitments.
I fear that we may have already committed more physical resources to the baby-boom generation in its retirement years than our economy has the capacity to deliver. If existing promises need to be changed, those changes should be made sooner rather than later.
Have you ever heard these warnings before? Oh course not, the Market Media Matrix thinks you are living in wonderland, and they want to keep you there for as long as possible?
To find out more about the Harmonic Stock Clock Book click here
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I have been warning about the high level of computerize programmed trading for the last several years. The Japanese stock market was hit with just a "tip of the iceberg" of how fast programmed trading can lead small investors to the poverty poor house. The programmed trading was so bad, the market closed early the first day, and opened up later the next day. When this happens to the U.S. Stock market, many small investors and those with pension plans, annuities, and mutual funds will be the big losers. We have not seen panic selling or capitulation since 1987, which was caused by programmed trading. It will happen once again, and no one will be able to stop it.
However, you can be prepared by using the early warning signs given by the Harmonic Stock Clock's simple trading signals applied to some key indices. You can also minimize the effects of a bear market by using stock options as insurance against catastrophic losses.
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