Yesterday I discovered a really outstanding stock trading site: Stockbee. I was searching for ways of finding stocks that have smooth trends. The idea was that if a stock has small retracements during a trend, then it is easy to determine when the trend has changed. And, it allows us to set a tight stop loss.
I was hoping to find some useful information on the topic, and I found it. (Here’s the post). What I also found was an outstanding resource for traders. One of the best things about the site is apparent from the post about smooth trends: it contains clear, actionable information. The author, Pradeep, even provides the Telechart code to find the smooth trending stocks!
After reading this article on Bloomberg about the end of the dollar, I thought about some important points that the author brings up. First, the dollar is declining as gold rises. This is a trend that has been going on for years, but most people are totally unaware of it.
I think it is interesting to note that even though the information is available to everyone for free, most people choose to ignore it. When we get our information from the “news”, we don’t learn about what is really important. This includes ideas like the dollar will soon become nearly worthless and the fact that the savings of a whole country is disappearing.
As gold continues to soar, more and more people want to get into the market. However, they feel that gold has gone up so much that it is overpriced. How do we know if gold is too expensive and going to get cheaper, or if it is going to continue to go up?
Will Gold Continue to go Up?
You have probably guessed, but the answer is nobody knows. However, we can still make an educated guess. And, using other principles of successful traders, we can even make money in the process.
The internet is the great equalizer, bringing more information to everyone for less money. In fact, usually it’s free. During today’s record setting heat in Los Angeles, I checked my favorite weather site to see what is happening.
I remember back in the olden days when you would find out the temperature by reading the paper or watching the news. Now, you can have very precise information in realtime. My favorite site is Wundergound.
The things you think about. The things you believe. The things you read and watch. The things that make you confident and the things that make you fearful are the very foundation of wealth generation–on a lot of levels.
The pricing of stocks and other assets reflect beliefs about their value. These beliefs aren’t just the thoughts and opinions of analysts and big-time market movers, they reflect your ideas, too. Now, your personal belief may just represent a fraction of that price, but when merged with the collective sense, you have mass market psychology.
The future demands more of us than our institutions have prepared us for.
Our learning institutions are designed to make us productive members of society. Heavy emphasis on “productive.” In fact, schools are built around the idea that we will be wage earners.
Teaching rote memory and learning to color within the lines and think inside the box are more valued in a factory setting where the guy or gal on top is the Queen bee wealth creator; everyone else is just a worker bee.
But, now, the hive has changed. You have more computing and communication power in your iPhone than US Steel did in its entire corporate structure. There’s no reason you should stay a wage-earning drone when you can become a wealth-creating owner.
Each week, we expect big things. It’s only natural. People want to see dramatic differences in their lives. They want to make more money. Find more friends. Have more fun.
There’s nothing wrong with that. Except, if your results fail to live up to your expectations and you grow depressed and quit.
Actually, life is like football. It’s a game of inches as much as it is a game of yards. And your financial situation is a game of pennies and percentages. Saving a few cents, earning a few cents, and investing a few cents–on a continual basis–can have a profound effect on your bottom line.
Doing the little things right over time can add up. As you’ll see…