Some more chop-chopin the markets right now, which is to be expected.
As I’ve mentioned to a number of people over the past few weeks, this earnings season isn’t likely to be good because of two main factors:
- The ongoing uncertainty and gloom
- The dollar strengthening by 25% during the last quarter of 2008. This has the effect of depressing US foreign corporate earnings when translated back. In other words US companies are facing a double whammy of lower sales and severe adverse currency movements compared with the previous quarter.
I know some of you have already benefited from getting the scoop from me in this regard and have therefore been more interested in bear flags recently!
A Word on the BBC’s Million Dollar Traders
As a side note, if you’ve been watching the BBC’s new show, “Million Dollar Traders” then you’ll have seen a valuable lesson in how NOT to trade!
This is a TV show about novices trading $1million of a hedge fund manager’s money. If you’ve watched the show, you would have noticed how the traders on the show have absolutely no strategy when trading their shares.
You would have noticed how their limited training has given them no trading plan whatsoever.
You would have noticed how they’re under pressure to trade even if they cannot justify it.
You would have noticed how they’re reduced to merely gambling on random news events.
That is no way to trade.
As Flag-Traders, we are all at such a massive advantage …
We have a method, a plan and a means of managing our profits so we can make windfall profits when the markets behave kindly.
We also have a method that highlights when not to trade if the markets are ugly, and therefore keeps us out of danger.
And we have a method of trading which is low-stress and gives us confidence and certainty even in tough market conditions.
I’ll write more soon … it’s a busy time as I’m developing intraday Flag-Trading software that is looking very exciting!
All the best