It has been a tumultuous 2016 so far! Volatility though not properly reflected by the VIX has been through the roof. You are seeing 60 point swings in the S&P 500 and 400 point swings in the Dow. If you feel like your head is spinning, do not worry - there are lots of you.
It has been a crazy two weeks for us here at Equity Sense. We've had an unprecedented number of new clients as well as class orders. This happens after we have raised rates on everything. I'm definitely not complaining. It does bring up an all-too-common theme: when people panic, they turn desperate.
Let me explain my last sentence. In November and December of 2015, we ran a lot of discounts and promos for memberships and classes. We still had a good number of people joining us then but that was only eclipsed by the last two weeks. The last two weeks saw a huge crash in the markets which led to a lot of panic. Now that we are not running any promos, we suddenly saw a huge spike in new members? It's just the way human nature is, I guess. Most people won't be pushed to do something until they are on the brink.
The last two weeks has seen an incredible amount of profits from all of us traders here. I am the permabear of the group while the others at EQS try to stay on an even keel. However, this market is far from being back to normal. With traps at every twist and turn - you can't afford to be using old techniques that only will get you slaughtered by the algos.
As Mike and I do our best to steer the Equity Sense ship to clearer waters of profitability, we do welcome the new clients. We hope that your time here with us no matter how long you choose to stay will be an enlightening and profitable one!
Ever since the start of the year, I've done a pilot project. It's a project whereby I trade a $25,000 account on stocks/options, futures and forex. In a way, clients can see how I would do with a $25K account rather than the actual account size I have right now.
The target every month would be a minimum of $10,000 or 40% return. I deemed that return as being 'reasonable' for anyone in this world to live on. I know, that in London, or NYC or San Francisco, anyone who makes less than $250,000 is definitely not middle class.
So these trades would marked quite clearly and it makes my trades more relatable to clients who may have smaller accounts. The sad thing about being an American trader is that if you wish to trade stocks or stock options, you need to have a minimum of $25K to trade freely with no limits.
So after 6 trading days this month, I have already achieved a return of $10,100 from this account. It therefore shows that it is doable and proves that it's not the equipment - it's the trader. Any trader can make money, its how you manage your money that really sets you apart from others out there.
This type of program has certainly attracted a lot of new clients and I have received very positive reviews on it so far. It is also one of the reasons as to why we've decided to increase our rates. With more people come the need for more manpower and resources.
In the end, what this pilot project should hope to prove are two things:
So if this type of project interests you and makes what we do more approachable, then think about joining us. For more info on our service, please click here.
Sale's over. Hangover's over. Celebrations are over. Now back to business. 2015 was brutal. 2016 will be even more brutal, I guarantee you. In a tightening environment, easy money is getting harder to come by especially if you're in the US.
I think 2016 will be the year of diminishing returns for global stock markets. Of course, I may end up eating that statement if the FED or Kuroda goes full retard and unleashes more QE. But in the end, the global picture looks frightening as the BTFDers are losing their mojo in this not so "EASY" environment.
Let's take a look at AAPL - the stock that can do no wrong. Everyone including their gramps consider this stock as a goldmine. Look at what happened in 2015 - it went nowhere FAST. Goldman tried to sucker in buyers with their continuous pumping of Apple but to no avail. Like I always tell clients - lies can only propel you so far in this market and eventually reality sets in. It took awhile but we're finally almost at $100.
Then we have the oil sector. Every advisor out there is continually telling their clients to keep buying energy stocks here for a rebound. Let's put it this way - it's better to buy here in 2016 than when they said to do so at the end of 2014. BUT, I am still not convinced the bottom is in. However, I'm not a good bullish trader so take that with a huge grain of salt.
There will be a great upheaval in 2016. Something that you, as a trader or market enthusiast need to be ready for. Whatever it will be, make sure you're not going to be caught with your pants down.
As for our clients - we've already sent out our 2016 investment and trading themes. Our sale may be over but you can still sign up for our monthly service HERE.
Traders from Equity Sense will be writing on this blog on positions and other market-related things.