• Dow
• Dollar Index
• Crude Oil
• Gold
• RB index

By properly analyzing each of these markets, you can accurately predict the trend. This can go a long way in maximizing your profits.

Along with MarketClub, we have brought you a video that shows you how to analyze these 5 trends.

The problem many people come across is trying to pick a bottom or top. Unless you are a fortune teller, there are ways to limit your odds of losing money.

In trend trading there are really just three things you need to watch: up, sideways, and down. These are the key factors to watch in trend trading, but how do you know which is which and when a trend has changed?

The following video gives you a good idea on how to spot trends and profit off them.

Essentially it measures the difference between two different exponential moving averages. Allowing you to determine the trend of a current stock.

All the terminology and ideas can get congested in text, so we have created this video that clearly shows how to accurately use MACD to predict any future trend.

Before watching the video keep these ideas in mind:

• Positive MACD – when the gap between the 12-day EMA and the 26-day EMA is widening, which represents that the rate-of-change of the faster moving average is higher than the rate-of-change for the slower moving average. Positive momentum is increasing, indicating a bullish period for the price plot.
• Negative MACD – when the negative gap between the faster moving average and the slower moving average is expanding. Downward momentum is accelerating, indicating a bearish period of trading.

You don’t necessarily always have to be scammed by a physical person. Sometimes it can just be a type of trade or stock. That is why it is important to keep these  5 things in mind when managing your portfolio:

1. Learn - Take some time to figure out how the markets really works.
2. Game Plan – Figure out your goals and what needs to be done to achieve them.
3. Indicators - Use a little technical analysis and consider where the market should be heading. If you know the market is going down, then be a little skeptical when somebody is promising you some type of positive return.
4. Market Proven – Trust yourself in making the right decision. Don’t make somebody else convince you of something you are not sure of.
5. Discipline – Stay true to all 4 steps above and be strong when it comes to losses and PROFITS. Just look at all the people who got messed up because they took some gambles in a booming market.

While you may not have the time to stay current with the financial market, start yourself off by selecting stocks that are well financed, have good liquidity, and have a history of big swings. Ensure that your portfolio is diversified into several non-correlating markets.

If you trade that diverse portfolio throughout the year, with a game plan and discipline, you should see the results you are looking for. Once you do this, you have not only created a Ponzi proofed portfolio, but you have also made it practically bulletproof as well.

Watch the following video for a little more about “Ponzing Proofing” your portfolio.

Fibonacci analysis is a simple study that allows traders to forecast levels of support and resistance and project price targets. The Fibonacci tool is study just like a moving average. You input your parameters, and information will be given to you. The data is objective, but your inferences based on the data are subjective.

Essentially the Fibonacci tool allows you to measure the a stock’s previous trend from the low to the high point. Thereafter, the tool will spit out 3 levels of retracement: 33%, 50%, and 68%. All three can be used as support or resistance depending which side they are coming from. The tool can also be used to determine if a stock is within a trading range.

The Fibonacci is a very powerful tool that is easy to use, and will instantly improve your trading. To learn more and see it in action watch the video below:

Watch the video – How to use the Fibonacci tool

Official Terminology

Time frame is broken up into two meanings, and it is key to consider both when creating a proper analysis.

Chart Time Frame - Basically the time span your charts covers (i.e. 5 days, 3 months, 10 years, etc.)

Personal Time Frame – The time span you would like a stock to perform. Are you willing to hold on to the stock for a couple days, months, or years? Obviously each trader has their own preference.

Overall Concept

The idea of time frame essentially means the span your particular stock chart ranges. Depending on the service where you charts are located, will usually determine how far back you can look back. For the most part, all the charts can go back to at least 10 years of historical data.

Reliant on what trader you are, will a suitable time frame be found:

• If you are a day-trader, then you would most likely break down charts in spans of minutes.
• If you are a swing-trader, then you would probably utilize time frames of days and months.
• If you consider yourself more of a buy and hold trader, then you would be better off looking at time frames of a year or more.

When looking at chart it is important to remember the time frame. The overall goal of technical analysis is finding patterns.

Lets look at a quick example:

Say we are looking a 1 year time frame of Stock A. We noticed a particular trend that peaked after two months. Eventually the stock broke below its support. If we remember our price targets for support, then we know that more than likely the stock should bottom out somewhere around that previous peak. Taking our 1 year time frame into consideration we should expect that bottom somewhere around 2 months.

So if two months fits into your personal time frame, then perhaps you may take a short position here; however, if you are looking to jump in and out of stocks within days, then Stock A most likely isn’t the right play for you.

It is important to remember that what looks like a pattern at one time frame won’t necessarily stand in another. That is why different type of traders use different time frame. If we were day-traders, then we wouldn’t care what happened with Stock A over a 5 year period.

Quick Check: You are a buy and hold trader analyzing Stock B. We saw a great bullish pattern at a 1 month time frame. What would you do?

Answer: While a bullish pattern may seem like sign to entry, you have to remember that as a buy and hold trader you prefer to hold on stocks for longer than a couple of months. In order to see if Stock B is the best play, you should proceed to check if these bullish sentiments still pan out through longer time frames.

It is common for traders to use multiple time frames. Many traders like to use a long time frame to see if a stock looks right, then shorten the time frame to see where some exact buying points would be.

Concept in Action

In order to better understand the idea of using the right time frame, below is a video that will help explain this. While the entire video is great for any trader, if you just want to see multiple time frames in action, then fast forward 5 minutes into the video.

Important Notes and Reminders

• Find out what time frame is suitable for your trading style.
• To create more accurate trades, use multiple time frames when analyzing a stock.
• Different time frames can produce different results for the same stock.

Using multiple time frames can drastically create more accurate trades. Make sure to note your personal time frame and then analyze the right chart time frame(s).

For this case alone, it is important that a trader never becomes to attached to a certain stock. The following video demonstrates exactly why traders are better learning how to let go.

Watch the video – Don’t Get Married to Stocks

TWI – Discusses the messy break up between them and Starbucks

The following video does a good job explaining this whole idea.

Watch the video – Using the QID

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