Thursday, August 26, 2010

A chart values hundred times a word.

Dear my visitors,

Many thanks again for visiting my site. I never-ever thought that I'll have this high number of readers. I hope I can serve you well and you will enjoy this small, educational blog.

This blog has been started with an intention to give information about my opinion regarding to the US market and precious metals. I've seen lots of retails and bigger investors lost their money in 2008. They lost their money and lost hope. They felt they'll never have their money back. I gave my help and we could manage to step to the path have the original back slowly. Volume study, experience and patience with professional approach with ZERO emotion can help.
It takes 3-4 times longer to get your money back than to loose that.  Patience.

A friend of mine lost 80% of his capital in 2008. It's an 80% damage, and you need to make 500% of the remaining to have your original capital again. Impossible? No. It needs time. After 2 years he could reduce his losses to 20% from 50% meaning 250% growth. Patience, smart thinking helps.

Retails don't have money to employ hundreds of researchers and invest hundreds of millions of dollars to run AI-based high-tech algorithms calculating probabilities and future scenarios adopt to the present figures in milliseconds.

No. Retails can't afford that.
They can draw some charts, have some experience, follow some strategy or theory and hope.
Retailers like a farmer with a knife in jungle between predators.

Here we TRY to detect smart's move resulted by their change on large-capital index volumes. They can hide their moves in prices in individual stocks, they have tools to minimize their visibility in C/Ps,  they try to hide their entries and pullbacks and be the first.

What they cant' hide is the change they make in volumes on aggregated levels. Of course, it will result a reactive strategy in our side, but I always emphasize: we detect here, so smarts will move first.
It means we will miss the top and bottom 10-15% and we concentrate to the remaining 80-90%. Maybe less. I feel that's still a nice and exciting business.

I always tell whoever asks my advices: please never try to pinpoint bottoms or tops. Let it do by others. Chasing the top or the bottom is a very expensive game.

Market behaves as you approach it. If you approach like a gambler, it becomes a casino. If you approach it with respect, it will start to respect you.

I suggest to approach market with respect. Market, like nature,  works with redundancy. We don't need to deploy all of its small up and down swings. It's fairly enough if we catch it's longer-term moves. Also, sometimes some mistake or loss is in this business.

One needs to accept these rules and enjoy Mr. Market.

I have very limited time to make my posts. I wish I could give you more detailed charts and commentary.
Yesterday one of you asked an update. I made a quick one. Now I'm sharing some charts, so you can see them with your own eyes. If you want, please feel free to get a stockcharts account and marketvolume account, and play them by yourself. Please try to learn how to walk alone and have your own opinion.

Thanks again for your kind interest and visits.

R3K 2days:

R3K  1 day:

SPX 500 1 day:

HUI (Gold miners/Gold) 2 days:

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