NOTES 4.16.22 SESSION 2

The more successful you become, the more people want to bring you down.

Story: celebrity chef, he did great things. Got to the top, journalist wrote really bad stuff about him. All lies, brought him back down. When he was down, they wrote good things about him.  

You gotta tackle the negative quickly, or it grows. (he ended up suing a newspaper for writing lies about him. They gave him money to not take them to court.)

WHEN TO BUY, WHEN  TO SELL. 

TRICK: INDEX FUTURES, American Markets are down 2%. I reckon today, I'll probably make 10k today. This account is 50k pounds. I'll make 40k. If you have 10k and you make 2k in 2 days is that ok?

First 7 years I amassed a small fortune on investing in stock and forex markets and did really well. Then did property investing. Own property in London, Russia, some land, a hotel. Its good to know how to trade, for the years when property values go down and interest rates go up. 

GETTING IT RIGHT FROM THE START

-You need a trading plan. * I am teaching you a winning system, you have to then master it*

Talk through some numbers: 100k, 6% per month is 3.3 million pounds. at 6 percent per month, your money doubles every year. 

2) what you need to know

You need to know what you want:, how much money you want to grow your account to. 

By when you want to reach these goals. 

Your why- what is the money going to do for you. 

3) tools to succeed

Look at notes- 

They found 30 charts, he got 24 charts exactly right (his prediction happened). They look at previous history, cover half of it and based on previous behavior, predict what will happen next. 

trending- long trend up or down. 

bounding trend is called oscillating

I will show you which time frame I use when i do this (determine the trend). 

Sell right after it drops down a bit.

How do we know if the trade has changed direction? the bigger price bottom the bigger the trend line?

volume number of shares brought and sold. 

normal volume, normal volume, touches the trend line, volume increases. 

-the floor is support. the ceiling is resistance. 

when stock is at 4, then it shoots up. people think next time it goes to 4 I should buy (if they missed the first time). that's what causes support and resistance level. 

Highest point in a chart acts like a resistance level. the lowet low acts as support level (when it gets to that level, people starts buying again, and then it goes back up here (to resistance level). 

short term- you want the closest peak and closest price bottom as mini support level. 

What was resistance will once again become support.  what was support become resistance.

Tidewater TDW course note slide:

Is price liker to break stronger line or weaker line?

I'm not gonna guess which way its going to go, I'm going to wait until I see what happens after it breaks that line. 

Swing trading- has to have potential to get me 10% to make it worth it. 

Question: how did they come up with the percentages? from 37.5 to 42.5 they said 6% 

TEST: 

draw  where the support and where the resistance lines you can see. 

Story: worked in Mcdonalds, factory doing circuit boards. 14 hour shifts, worked for 3 months to save to go on really bad holiday. now I can make 3k pounds. I never could possible believe this when I had a rubbish job. 

Once you get good at this, totally changes how you look at everything. It can totally change your life. 

6 MAIN MISTAKES TRADES MAKE, 2 MINOR MISTAKES 

STORY: Mistake: turn beginner investors and turn them into incredible successful investors. FOR LEGACY. 100s of applied. 17 people got in, 12 months spent working with them. A lot of the group made lots of money. I got them to do, send me one of their trades I would analyze it and give them feedback, point out mistakes and how to correct them.

1st month, gave feedback. I saw that they were making same mistakes I made when I started out. 2nd month, how many made the same mistakes? all of them. He did videos showing main mistakes. 50% got better, 50% made same mistakes. Most people got it after 2 months, some after hearing it a few times. 

I'll point to you these 8 mistakes. Hopefully, you won't make them. I'll do 2 mistakes now, others through the next couple of days. 

Question: can't see the legal pad big thing he's writing on. another question, why not record this class and make it an online class so we can rewatch at a later time?

#1 Never trade against the main trend. 

month 1, about a third of the group made that mistake. trading against the trend. 

#2 NOT BUYING  CLOSE ENOUGH TO SUPPORT IS MISTAKE. RULE IS

ALWAYS BUY CLOSE TO SUPPORT. 

double bottom chart hand (name of the chart pattern he's showing). 

bought it at too high up than the range of normal movement. risk is too big if it drops down to there. Instead just as it starts to bounce off trade line, there is a smaller risk. always buy close to support. 

Good places to buy: just below the support level. That way you minimize your possible risk. 

2 different chart patterns. (answer to question) far enough to keep you in the trade I will cover that tomorrow. 

If you see a strong resistance or support level, put it on your watch list. When price breaks over a strong resistance level, price breaks and fast. 

What good investors do, they buy and then it keeps going up. I do something even better now (above buying when it breaks over resistance level here). 

Better way than guessing between the two. When price is above resistance level, I wait for it go up, come back down. sales stop right below there (we can't see what he's writing down). This is how I enter almost all of my trades now. 

Sometimes it goes right up, takes off, I miss one of my 5 trades. When I get it, way higher probability of getting it right. It can pull back and bounce. 

In the UK right now, lot of companies that teach you investment trading courses. Everyone one of the founders were my students, without exception. (names different companies). They did my training course 10 years ago, decided to teach it. They cant copy 10 percent, they change them slightly. 

if you have a strategy that works and change it slightly, it doesn't work exactly. Every year or 2, they send their staff to my training course. when i teach something new, it takes 4-5 years before it appears in someone else's course. I'm teaching it and won't be teaching it much longer. 

SLIDE: support and resistance: Exercise 3

Slide: risk and reward: Maximize your profits and Limit Risk. Slide after that, shows you visually where you are supposed to buy. 

I spend 1 hour a week developing which trades he will take during the week.

5 minutes a day, seeing if I need to move my stops. You change the figure, where the stop is. I will show you tomorrow. 

Risk/Reward: 2/1

This distance here is twice as big as this distance there. (on pad, cant see what he's writing)

8 to 1 was worst reward to risk ratio. 

Q&A: how to compound your investment.

Long term 8% a month

Swing 15% a month

I'll let you know some trades I'm looking to make this week.

Here put seed capital. 10% a month, putting 1k. 

Look at the numbers over what I will make over 5 trades, 10 trades, what does that look like? etc etc

This calculator takes consideration on that, exciting. on 1k after 5 years you will have 897,000. That is pretty crazy (agreed) . This is doing 12 percent returns every month. 

Come down a little bit. Personal year target I reached it within one month. I was going to start 4k to a million. I've done 400k in 2 weeks. Not realistic on a consistent basis. 4k account, to 8k.

It's doable. I've been doing this 4-5 years ( I took this course 4-5 years ago). I'm not dangling results that will take years to get to. You are going to look to see some long term results. 

Different behaviors on a chart. Establish quickly, essentially what direction it is moving on. Prices are going up, what this tells us. The momentum is on the up side. 

trend lines are diagonal (going up). the equivalent of resistance on a trend line, we call CHANNEL. gives us focus point of where to buy, and were investors buy and sell the it'most. History repeats itself. 

Support is horizontal. 

Gives you insight into where to get in. if stock price goes to where it hits support, do i get in?? no, I wait and see what happens next. We'll talk alter on how to work out your risk.

risk reward, we'll cover this a lot on day 3. no way would you risk 100 percent of your cash on one trade. CRAZY.