I sent an alert to my private group going into Thursday’s close about a new position I just took in the Seven Position Portfolio.
It’s a long position and that means it’s a buy.
Even though I have now been telling you that the stock market is in a bear market (see this video) and that means we can expect it to go lower I don’t just bet against stocks or the market to make money.
I do some of that, but I also buy things.
What I bought though wasn’t . And it wasn’t gold. It was something else in a consolidation base positioned to breakout and go up no matter what the stock market does as it has no trading correlation to the market.
It has a clearly defined entry point with a defined exit time.
That is what trading is about. It’s about having a plan that fits with the most important investment and trading principle there is.
Now, look at this stock that I heard so many people last week say buy on CNBC and elsewhere – really everywhere – when the market bounced.
Apple fell into a vicious downtrend months ago falling below its 200-day moving average into a stage four decline. I heard Apple fans say that the stock drop didn’t mean anything and to ignore the drops.
Apple even announced that they would no longer report the number of they were selling and they ignored that too.
I thought that was a big troubling sign, but I heard Apple fans say it didn’t mean anything
And the stock fell and fell.
Until this week it announced an earnings downgrade.
Now we know WHY the stock had been falling so badly in the past few months.
There really was something wrong and it’s only going to fall more as this year goes on.
There is a big lesson in this.
It is that when a stock is in a solid downtrend there is usually a reason for it so when you go against that trend you suffer.
The same goes for uptrends too! When you buy with something making higher highs and higher lows you can expect to make money.
The most important thing to do to win at this game is to align yourself with the trends!
Most things now are in because the stock market is in a bear market.
That’s why buying off tips and hype no longer works. Really you get what you pay for. When you turn on your TV and hear someone yelling to buy another fad stock that’s broken down you get what you pay for.
The information is worth nothing, but you pay nothing for it.
You get what you pay for.
But there are things in buying trends – it’s just that people talk about what they are and you practically have to now be a market insider to make it in this market.
But I bought something.
If you want to find out what I bought and get my future trading alerts in my private group just grab my Two Fold Formula and get the bonus deal option with it.
I’m already up for the year!
Just click here.