Author: Investa

Today, only a few have lived to tell the tale of how they survived the 2008 stock market crash. Even fewer are recognized as legends who got richer because of the crash. For those who barely know or remember what happened, here are the record breaking market disasters: Globally, the MSCI World Index dropped by 6%, the biggest drop since its establishment back in 1970. In the US, the Dow Jones Average dropped by 7%, the largest single day drop back then. For London, the FTSE 100 index dropped by 15%. Worse still, Brazil halted trading when their index dropped 10%. Gold jumped up to $900 an ounce (inversely correlated with USD) while, oil prices dropped to $95 a barrel. Clearly, the world of financial markets was in turmoil.

We spoke with Gary Smith, an equity investor from the United States, to share his experience during the 2008 stock market crash. “All hell broke loose!” was the first thing he said after we asked about what it was like being an investor during these times. “There was blood on the street (everyone was suffering a loss), everyone didn’t know what was happening.” Gary is in part a long term investor, as well as an active swing trader. “All of my long term bets during the time like General Motors, General Electric, IBM, and the like went down the drain so fast. To give you an example, I had IBM shares at $35 that I’ve been holding since 2005. GE crashed by around -80% during that time, I was lucky enough to get out at $24 only suffering a -30% loss.”

We asked Gary about his experience on swing trading during this period, he said “My man, these were crazy times. Almost everything you touched went down. People keep saying that this was the best time to buy more stocks as they were getting cheap, but that’s all hindsight. At the glare of the moment, it looked like the Dow was in a hole. I tried to trade through it, but I kept on getting stopped out. It was probably best to stay in cash during this period.”

Our last question for Johnny was, “What advice can you give to traders who have never experienced a global financial crisis?” Johnny answered, “Learn the ability to sit out during tough times and stay in cash. You may miss a couple of bargains, but you’ll also avoid getting wiped out entirely. This doesn’t mean that there aren’t any opportunities to make money in market declines. You can either short the index and individual stocks, or try to find bargains in the market. However, the ability to stay in cash is completely underrated.”

It is without doubt that the 2008 stock market crash was one of the most gruesome events a trader can experience. Any regular trader would be happy just to survive the crash. However, within the gardens of Singapore, lies a legend. A trader who not just made profits catching the bottom of the crash, but grew his portfolio 20 times its initial size. In the span of 15 months time, Robin Ho grew his $100 thousand to a massive $2 million during a period countless of traders around the world lost fortunes.

Yes, knowing when to stay in cash plays a huge role in staying alive in this game. Avoiding the markets when the rewards does not look favorable, as opposed to the risk, even plays a bigger role in winning this game. But the most important part of this game, is knowing when to jump back in. After all, the ultimate goal of any trader is to profit in the markets. Catching bottoms is one of the most challenging things you will do. It requires a confluence of multiple strategies to pull off really well, and the psychological burden to pull the trigger (or enter back) is even greater. But catching market bottoms can also be the most rewarding, if not life-changing, investments you can ever take. Your investment should grow exponentially as you ride through and maximize the entire trend. There are no clear shortcuts to financial freedom, but clearly there are ways to fast track it. And when that opportunity arises, it is up to us to make the move.

As the US and China trade wars continues, we cannot really predict what will happen next. More importantly, we do not know when another global crisis can break loose. However, when the time comes, what’s most vital is we know how to react. Which is why this July 27, 2019, at the Joyden Hall, we have asked a legend, Robin Ho, to share to you proven key strategies on how you can not only survive, but WIN in a global crisis.

With the recent happenings in the crypto world, many institutional investors and traders are eyeing bitcoin and other cryptocurrencies and with the anticipation of of bitcoin price reaching its eye-watering 19,000 levels, one thing definitely comes to a trader’s mind before he hits the buy button: are we really on a crypto bull run?

OUR VIEW ON BITCOIN ($BTCUSD)

Bitcoin’s (BTC) price rose to fresh $13,358.68 as of June 26 trying to surpass the highest level since January 2018 and now currently trading on a pullback at 12,200+ to 12,300+ levels.

Congrats to those who bought and accumulated early, but now we believe we need to be more careful.

We’re in a critical resistance point at 12,000 to 12800 and from here on we prefer to trim and lighten up at this point.

WHY? Here’s our take.

The biggest crypto has awaken on the back of Facebook entering the cryptocurrency space through LIBRA and with the recent happenings on the cryptocurrency world, many traders and analysts also believed that the LIBRA announcement has a big role to play in this market. The crypto community also took the news to Twitter and celebrated the bitcoin when it crossed 10,000 levels through #Bitcoinisback hashtag and became the number one hashtag on Twitter world last week.

However, we believe that we should think about the bigger implications of LIBRA in the crypto space.

Libra is potentially a MASS adoption cryptocurrency. Even if only half or 20% of FB users utilize it, it will likely be the most used crypto for a lot of transactions in the WORLD.

This goes against the basic use case of Bitcoin. While Bitcoin is the god father of the innovation/concept behind cryptos, we think that more and more big companies (Facebook and Telegram has already led the way) in the future will launch truly scalable and efficiently usable cryptocurrencies in the future.

And as more reliable cryptocurrencies emerge in the future, the use case for bitcoin in terms of regular transactions diminishes.

What does this mean on a trader’s perspective? Our view is that we shouldn’t get too hyped up with the recent rally. Take into perspective that people are getting that slight boost of euphoria from Facebook’s Libra announcement.

Take note that we’re in a critical resistance point at 12,000 to 12,800 and from here on we prefer to trim and lighten up on Bitcoin as we move forward. A breakdown below 11,000 can trigger a bigger dip, that’s where we re-assess and see potential pick up points once the hype has cooled down.

As always, apply your own strategies and risk management protocols. We are just sharing our personal view on this matter!

Learn more about trading from some of the most notable traders and fund managers in the world in Investagrams Traders’ Summit Singapore this July 27, 2019: www.investagrams.com/traderssummitsg

#BTCUSD #Bitcoin #Cryptocurrency #InvestaGlobal

Congratulations to K E R L O, also known as @carlosamonte, for spotting $CHP (Cemex Holdings Philippines, Inc.) 17 days before it even formed its Inverse Head and Shoulders bullish reversal pattern! He notes that there could be two possible ways to enter the stock: either at the 0.5 or 0.168 Fibonacci levels for aggressive traders, or at the breakout of the neckline at 2.80 for those who want to wait for confirmation.

Initial Spot:

A few days after:

Here’s what happened a few days after Carlo posted his initial view on $CHP. He noted that if you weren’t able to catch the dip towards support levels, it’s okay since that would’ve been a very risky and aggressive buy. Carlo reiterates that the next optimal entry is the breakout from the Inverse H&S pattern at 2.80 area. He also gives everyone a very important reminder, if you planned to purchase $CHP when it broke out, then you should also practice proper risk management and place your stop below the breakout level. Lastly, he says that possible take profit areas would be 3-3.20, then possibly 3.40-3.60 levels.

On Technicals:

Currently, $CHP has already broken out of its Inverse H&S pattern on above average volume. Taking a look at a longer-term view, we can see that the volume activity since the end of 2018 is MASSIVE compared to the months prior, indicating that a reversal, or at least a counter trend rally, may be brewing. Take note, $CHP is still in a long-term downtrend. There’s still a ton of overhead supply since there are still trades holding on to losing positions which may act as a resistance as prices continue to climb higher. So, unless there’s a significant catalyst that indicates a reversal, a swing towards 3.50-3.60 levels may already be a good area to trim majority of your position.

Kudos again to Carlo for spotting the $CHP more than two weeks before the Inverse Head and Shoulders pattern was completed. Your FREE one-month InvestaJournal will be accessible to your account soon! Let’s all keep an eye on this stock this coming trading week to see if it can potentially break the 3 pesos resistance.

Congrats also to everyone who was able to ride his analysis – you possibly gained around 25% coming from its bottom at 2.32 and last Friday’s close at 2.92 or it’s breakout!

Most traders, if not all, aspire to double their portfolio in the shortest span of time. And with that goal, traders easily get hyped with the latest trending scheme. Be that inside the markets with a speculative merger, a new investment project, or even an FDA approval, our greed cannot handle the potential “gain” we might miss. Mark Ritchie II specializes in this kind of play. He knows when to get in before the stock begins to skyrocket, and more importantly, he knows when to get out when the stock has already made its top.

Mark Ritchie II has made quite a name for himself when he won Mark Minervini’s Triple Digit Stock Challenge back in 2010 by achieving triple digit returns in less than six months. From 2010 to 2014, he’s grown his managed funds tenfold from its initial amount, consistently compounding his portfolio year-in-year-out. With that much traction, he was officially invited to be one of the 4 Momentum Masters arranged by Mark Minervini’s roundtable interview.

Speaking for someone who you have only read from the books can be quite daunting, but not for Andy Yiu who’s been specializing and mastering the art of momentum trading. Andy is one of the retail traders in Singapore we interviewed to share on his experience. He primarily trades US Stocks, and is slowly adjusting his system to handle the FOREX Market.

By replicating the mindset and strategies of the Four Momentum Masters, Andy had a strong foundation on the essentials of momentum trading. From habits to daily routine, stock screening to stock selection, and planning to execution, Andy has gathered major key points from all Momentum Masters to create his own momentum system.

Coincidentally, when we asked Andy, who among the four-momentum masters he relates to the most, he answered “Mark Ritchie”. Why? “Because upon studying his core beliefs and principles into trading, integrating his strategies to improve my own were the easiest. It’s as if we have the same trading personality, so with most of his answers, I can easily agree. The only difference I see is that he on level 10, while I’m still at level 3 continually improving my craft.”

As always, we always end our interview with the question, “Do you think you would be where you are at your trading journey without the help of Mark Ritchie and the 3 other Momentum Masters?” Andy responded with, “No, I do not think I would have survived trading at an early stage. I do not have a personal mentor, so they were my virtual mentors when I needed answers. When I get stuck, I usually just reread the book corresponding to the topics I have questions on, then eventually gets it. Without the book, I would be likely still at level 1, without any direction.”

Our journeys at finding one’s trading style to fit one’s personality does not have to be alone. As traders, we should find mentors who match our needs and our goals. Here at the Investagrams Trader’s Summit, we have gathered a wide array of traders and investors, each a master of their own craft. So whether you’d like to level up your trading, or you’re still finding which trading style fits you, everything is made possible at this grand event.

Congratulations to Lao a.k.a. @lao__ for spotting $MAXS (Max’s Group, Inc.), a turnaround situation, two trading days before it broke out of its downtrend line and the 20-day moving average! He noted that $MAXS will need to display good volume, preferably above average, in order to break and stay above the downtrend line and hover above MA20 in order to sustain the upswing. This  was posted on the Market Wizards InvestaGroup where members share their analyses on different issues, so if you want to see the exclusive insights of other fellow traders, you should definitely join the group!

On Technicals

$MAXS is still in a long-term downtrend, but has shown signs early this year as a potential turnaround situation. From the beginning of 2019, it went as high as 60% YTD, but has been decline over the past weeks. The stock was able to find support at the support levels of its previous consolidation pattern at around 12-12.50 pesos. Based on Lao’s post, $MAXS needed to break above its downtrend line and the 20-day moving average on good volume in order to continue its upswing.

Current Chart of $MAXS

As pointed out in the chart, $MAXS was able to successful breakout today above its downtrend line and MA20 on above average volume. Given the volume the past four trading days being all above average with only one red candle, we may have not seen the last of $MAXS. Many may have taken this out of their watchlist due to the -23% decline from 16 pesos, but now we may still see a potential run for this stock.

$MAXS is still definitely benefitting from the decreased inflation rate in the prior months, and its earnings since the 2nd quarter of 2018 have all been positive. These are good signs that the stock may have bottomed out, and the reversal may still occur. For now, we may see a potential swing to 14.50, a resistance level noted by Lao. If $MAXS then continues to show strength and sustainable demand, a possible retest of 16 pesos may occur in the coming weeks.

Kudos again to Lao for spotting $MAXS two trading days before it broke out, and for posting his analysis on the Market Wizards. Your FREE one-month InvestaJournal is on the way! To learn more about InvestaJournal, please visit: www.investagrams.com/investaprime

Congratulations as well to everyone who were able to buy the breakout today! Cheers!