Here are three ideas that I hope every one of you has taken away from this blog. The idea is to empower you to make money trading. Without giving away all my secrets, I have shown you the path to profitability in three areas, leaving it to you embark upon your own individual journeys. I've tried to mix theory with practical, realism with hope and the technical with fundamental. So let us review, as these topics will be on your final exams, so be ready, be prepared and be forewarned.
(1) The Trade Triangles from Market Club (click on their advertisement somewhere around my photo) are an objective, mechanical way to trade short-term breakouts in indexes, stocks and futures. I tried to put up enough examples to prove that the concept works and that you can tweak the trading rules to fit your own trading style and emotional temperament.
(2) NanoViricides is our own lottery ticket to wealth. With much greater odds then the Powerball payoffs, this gem of a company has eight potential NDA's and an evolving pipeline that soon will be the envy of the entire biotechnology sector. It's selling at sixty-five frigging cents a share today. If only a couple of their products pan out, it's a $50 stock. Half the products, a $100 stock. All their products, $200. Their progress in the lab has been phenomenal. So why is it still a penny stock? Because their story is too good to be true. The bet here is that it is true. Every development, press release and periodic report to shareholders has been consistent with the claims being made. The time-line is a drag and the impatient have moved on. Those of us left standing with these shares will one day soon toast to them, to the bashers and to the unwashed detractors who have tried to loosen the grip of true believers on their shares from day one. It will be the most satisfying toast of our lives.
(3) The Crash introduced the concept of pattern recognition to our trading, specifically the eight wave fractal described in The Elliott Wave Principle. It has taught us that social mood drives society and our economy and that although invisible to the naked eye, social mood is manifested in the movement of the stock market, the collective psychology of society. These patterns can be measured in an empirical fashion through the use of Elliott Waves. Because these patterns can be identified and measured, because they are consistent, they are predictable. Because they are predictable, they can be an effective tool to wager on probabilities in the market.
The markets are on the precipice of another big move. It's not up. This little Wave 4 is playing out and when its done, Wave 5 to new lows will begin. The Dow will lose a couple thousand points. Be ready, be prepared and be forewarned.