Investing is complicated without knowing the rules, following my principles and rules will ensure your success. 

Don’t be afraid of the markets, remain calm, take your time to learn and understand why stocks rise and fall every single day on emotion and sentiment alone.

We can’t predict what is going to happen tomorrow in the markets, nobody can! but we must learn how to react to what happens tomorrow and take decisive action to av0id losses.

I don’t believe in providing a minute by minute running commentary on the stock markets, not because I don’t want to or can’t!. I simply don’t think it’s necessary as there are thousands of people trying to do that already! yesterday’s stock market performance will be different from today’s performance, no two days are ever the same.

I started learning how to invest in the stock market back in 2008 and began to read and listen to everything I could find, I soon realised that everyone had an opinion and very few were the same and none were very accurate.

Don’t feel compelled or pressured to trade every single day, nothing wrong with sitting in cash for as long as it takes for the right trade to present itself, don’t rush trading or force a trade, (we can’t force the market in our direction!) when the signals and fundamentals are right then we trade, don’t trade for trades sake, be patient and wait for the right signals.

Don’t be concerned about buying a stock that just reached it’s new all time high, if the stock has been trending up for the past 10 years or more then it will have reached a new all time high thousands of times and still kept rising in price, look at any good company stock price chart and you will see that this happens all the time, stocks reaching new all time highs are nothing to be concerned about, this must happen for a normal upward trend to occur.

Being disciplined at all times is key to an investors success, don’t keep changing the rules, stick to the rules and principles that work for you no matter what the market does, we can’t force the market into our preferred direction, if you try and push the market then you will lose.

There are thousands of people on social media and hundreds of businesses that provide their market opinions daily, I hear them all saying what happened yesterday, but very few can accurately tell you what is going to happen tomorrow. nobody can do that!

Please remember that the stock market is driven by individual and institutional sentiment and NOT by logic or rational thought or in fact by a companies overall performance either.

It’s always best to keep the stocks that are showing a profit and sell the stocks that are showing a loss. the stocks showing a loss will most likely not recover, yet the stocks showing a profit will normally keep rising.

Remember on huge down days that you’re not alone, almost every stock in the market will have fallen on these types of trading days, stick to the principles and rules as the good companies will recover over time. Almost every professional investment company globally will have also had a drawdown on these days, it’s impossible to predict these poor trading days so we must be confident in our investing system and keep trading unless our signals say otherwise.

Good and bad news about a company stock is already known well before the markets open, stocks will respond in either an up or down direction depending on the company results, there is no guarantee which direction they will go as some institutional investors may feel they should have done better, even after good company results the stock could fall, ONLY buy a stock 30 minutes after the market opens as the good or bad news will already be reflected in the price.

You will have noticed that very negative news will drive the markets down, not just great companies will fall but almost all of them will fall at the same time.

The negative news story could be related to one specific market sector such as airlines, but the entire market could be affected by this negative news story, also sometimes a negative news story within a sector such as food delivery could affect every company in the food delivery sector when it’s only one specific company that has the negative news.

Long term investing simply needs the investor to stick to the principles, rules and continue to invest through the negative news, market noise and endless commentary from the so called experts.

Through these volatile up and down periods the good stocks will also fall with the poor stocks, the difference is that the good stocks will rise again with the rising overall market but the poor stock won’t, they will continue to fall or remain flat, they will not rise with the good stocks.

No company stock ever rises in a straight line for very long, they always go up and down and rarely have more than 5 consecutive days in the same direction before reversing, when you buy a stock that was up yesterday it will more than likely go down tomorrow, However. if it’s a great stock then the overall price trend will be up over the longer term.

The stock market conditions are evolving and changing everyday, there are very few days where the market is continuously rising or falling, the charts below demonstrate how volatile the markets can be. Also this volatility is actually normal, this is what the markets do everyday, so don’t be surprised by these daily rises and falls in the market. It is what the market does based on market sentiment by investors (millions of investors are creating the sentiment that moves the markets)

I have been listening to Bloomberg for some time and they are very good at telling you what is going to happen tomorrow morning because of the futures and what’s going to happen today once the market has opened, when there is a big sell off it’s seen as a bloodbath or a rout and when the market is buying big they just call it an up day, when in many cases it’s a rally, by all means listen to Bloomberg as it’s an interesting show and you will pick up some information, but please remember they are a news and information service who must continually say something about the stock market, they simply can’t be quiet, take what they say with a pinch of salt and make up you own mind whether to take action or not, Bloomberg cannot predict the future any better than anyone else.

Please select the “Useful Info” and “Principles & Rules” tabs for additional helpful information.

Proprietary Fundamental Data Screen (acceptable results)

Please see the targets listed on each chart below, all stocks must pass these fundamental targets before the buy triggered is accepted

 

Proprietary Fundamental Data Screen (poor unacceptable results)

These are poor unacceptable fundamentals and would not be accepted even if the buy trigger was generated (would not trigger a buy with these poor fundamentals)

 

Tesla Inc (TSLA) – 9 months

See the price movements over 9 months for Tesla Inc. (green=up day and red=down day) timing is very important as the overall trend is up, we must have clearly defined strict buy and sell triggers to ensure we don’t panic sell when the price is falling or to buy at the wrong time.

 

Apple Inc (AAPL) – 5 years

Apple Inc stock has been rising and falling over the past 5 years, (and much longer too) it’s overall trend has been upwards, but we would not have know that at the time, so it’s critical we know what our buy and sell signals are, timing is very important.

 

Bitcoin – USD – 5 years

Bitcoin is a very volatile cryptocurrency, seems like millions of people are promoting it now, but what happened to all those people who owned bitcoin when it was above 17,000 and now its at just over 9,000 ( you might get lucky but be careful with Bitcoin an other cryptocurrencies)

 

Cheesecake Factory (CAKE) – 5 years

Very important that we have set principles, rules and signals for when to buy or sell, we will never follow a stock to the bottom if we stick to the rules.

 

 

FTSE 100 (UK Stock Market) – 5 years

Indexes move up and down all the time, they will never go straight up or down, the stock within them will all do the same.

 

S&P 500 (USA Stock Market) – 5 years

Indexes move up and down all the time, they will never go straight up or down, the stock within them will all do the same.

 

DJIA (USA Stock Market) – 5 years

Indexes move up and down all the time, they will never go straight up or down, the stock within them will all do the same.

 

NASDAQ (USA Stock Market) – 5 years

Indexes move up and down all the time, they will never go straight up or down, the stock within them will all do the same.