Alright Investors ,

This week as we go into Thanksgiving what is your gameplan?

I am looking at the end of October decline as starting to wind down. I see the $SPX ( ▲ 0.54% ) and the $COMPQ ( 0.0% ) finding bottoms on a support floor. Just remember very few bottoms are ever V bottoms.

Most people in the stock market attempt to time these tops and bottoms, but why I win 75% of the time is because I do not play games. I use support and resistance to only pull the trigger when I can profit from taking the chunk in the middle. Never guessing whether we are at a bottom or top. I only trade when I have a gap within an already moving trend big enough for a 5 day profit window.

Let me explain what the difference is…

Whether you have a professional managing your money or not, most of us have learned that the stock market is a long term place to put your money. However that long term is never about buying into a stock only at it’s bottoms.

Buying long term onlys applies when you have a funnel of money that allows you to stake cash waiting for the proper buying time for certain investments.

My opinion, that investment stratedgy will always work in two instances. If you actually own a hedge fund and can leverage big big money or if you take yourself back in time and invest with the economic rise of the US stock market during the time Buffett built his name.

Today’s market is different; and I write this newsletter not for the ones that already have a ton of money but for the ones that are starting with less than $500k in networth. I can prove this to you with 2 examples:

$10,000 invested in the $SP500 for 20 years the result would be $64,844 or a 84% return. In 20 years! Only 80% not including inflation… which then knocks that return down to less than 72%.

If you started with $500,000 in 20 years you would have millions and you could easily live off that in your golden years.

The difference is leveling the playing field and earning enough to actually life off your investments.

I know that people have all these models that show that timing the market doesn’t work. I am inclined to agree with them all. No one can time a bottom or a top because the market very rarely ever has V bottoms. The way around that is to choose charting indicators that allow you to learn to earn the chunk in the middle.

I wait until I can confirm a bottom or top has formed. I learned a long time ago and by losing a small fortune that you have to use the moves in the market to show you a building position that is coming towards you in the opposite direction.

Like the pressure pushing towards your line in the sand. When the market moves in the next direction it crosses that line in the sand and you wait for your indicators to show you a entry to pull the trigger on.

I use the MACD and the 3d and Weekly charts to compound the buying of stock targeting these moves.

I use a real yearly repeating pattern of the 6 month effect to find windows to buy and sell.

The 6 month effect is the time period of now October - March and that is where I make the bulk of my money year in year out.

Last year I bought a stock that moved up over 60% during that time period. That is one year’s return versus 20 years.

If you want something to keep you up do the math on that compounding of 60% a year over 20 years if you cut all losses at 10% and you are right 75% of the time.

What is better for your money? Buying and holding or Buying, Holding, Sellling, Repeating.

The win isn’t the trade — it’s sticking to your plan. Protect capital. Stay intentional.
Keep going. You’re doing the hard part most never will in order to eventually live like most never can.

This newsletter is for educational purposes only and does not constitute financial advice. Always do your own research and consult a professional before making investment decisions.