- There
are two types of market conditions that we hear about all the
time - the Bull market and the Bear market. These are simple
to define and the easiest to trade.
-
- The Bull Market is a market that is trending higher.
-
- The Bear Market is a market that is trending lower. Trends
were explained in a previous newsletter that you can find a link
to at the bottom of this page.
-
- Of course there are other types of markets that require
different types of trading. In a bull market we buy and sell
higher. In a bear market we sell short and cover at a lower price.
There is also a flat market, a sideways market, and a choppy
market. It's important for our trading success to determine how
the market is evolving because most stocks follow the direction
of the market.
-
- In this chart
 of May 31, 2002 we have a minor down trend, a
major down trend, a confirmation of the low, and a possibility
of a double bottom. Anyone with knowledge of technical analysis
can describe to you what has happened in the past and sound intelligent,
but the real skill that leads to a traders success is being able
to predict what is going to happen and then entering trades with
increased odds and lower risk. Now let's consider the current
market condition. We just came out of the highest bull market
ever and are experiencing something close to the low of a strong
bear market. You hear talk about economic recovery because most
investors want a bull market again, but when will it happen?
The markets go through bull and bear cycles due to the actions
of the federal reserve. If history repeats itself as we expect
it to, we should be entering a bull cycle fairly soon (less than
2 years).
-
- The average trader is not privy to the resources and information
to know when the market will turn, so we use technical analysis
to help us determine what the big money is doing. The big money
begins accumulating quality stocks while the news is bad and
before positive market talk is happening.
-
- The markets are not designed so you can make money. They are
designed so the big money can get bigger, at least this is my
opinion. We don't know where the market low is going to be, but
if Pakistan and India go to war it will most likely be below
1100 on the NASDAQ 100. Under normal circumstances I think the
market is close to it's low and therefore think that buying a
beaten up company that is profitable and not likely to go out
of business would be a good buy and hold investment. If you are
daytrading, your capital is probably limited and tying up money
in long range investments is now a wise idea. As of today, I
think the market will break the low and then run up. The double
bottom is a good place to enter a trade because it gives you
easy entry, exit, and stop points as explained in Princeton's
TradeTutor courses.
-
- There are 2 main reasons why I take the time to publish this newsletter.
The first is to share my knowledge with fellow traders because
I love profitable trading and the second is to introduce people
to Princeton's TradeTutor courses. I put an incredible amount
of time and energy into developing the TradeTutor to educate
traders in our trading room. At less than $1000. it is a bargain
and if you go to Princeton's TradeTutor site you will find a
way to save $100.00. click
here to check it out
 |
- Preventing
just one serious mistake can easily make the TradeTutor worth
more than twice it's price! And save you from serious Emotional
Damage.
|
- We have revised our training
programs to be the latest and greatest and for the first time
ever are making them available to everyone on a set of CD's.
This is the exact same training we offered in our trading room
for $2000+. Here is another plus. We are offering a FREE CD that contains the first lesson from each course.
How many times have you taken a course because it sounded so
good only to discover that it was not as advertised? You forget
to send it back and time runs out! Well, that can't happen with
Princeton's TradeTutor because you get to experience how great
it is as you learn from 4 Free lessons. Order the Free CD
Now!
|
 |
-
- We just added
a way you can save $100 if you act now! Click Here
- If you notice an error in our newsletter, we would
appreciate your letting us know with an email
|
Training Programs will make learning
fast and easy!