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3 Reasons Most People Never Make Money in the Stock Market 5 Steps you MUST know before spending another Rand Thank you for arriving early! The talk will begin shortly. Thank you for arriving early! The talk will begin shortly. Thank you for


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3 Reasons Most People Never Make Money

in the Stock Market

5 Steps you MUST know before

spending another Rand

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Thank you for arriving early! The talk will begin shortly.

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Thank you for arriving early! The talk will begin shortly.

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Thank you for arriving early! The talk will begin shortly.

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3 Reasons Most People Never Make Money

in the Stock Market

5 Steps you MUST know before

spending another Rand

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What’s the hardest part about making money in the market?

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95% fail

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CORE PROBLEMS

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Problem #1

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Successful people concentrate on doing their job well.

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Successful traders DON’T treat trading as a hobby.

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Your Goal = Make the Best Trades

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  • Don’t be concerned with the fruit of your

action The fruit will come of its own accord. Focus on the process

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Problem #2

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Have you ever said:

 I know it’s down now, but it will come back.  It’s already down 20%, I might as well hold onto it now.  I have a profit, but if I close now it will probably keep going up.  I know I lost more than I thought, but if I close now it will probably go up tomorrow.  The last time I sold a stock, it kept going up. So I’m not selling this one yet.

Hope Despair Greed Fear Frustration

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Problem #3

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Market Direction is 80% of the task

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Take Personal Responsibility Step #1

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Your Goal = Make the Best Trades

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  • Success is actually a short race….a

sprint fueled by discipline just long enough for the habit to kick in and take

  • ver.

Trading Discipline

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Remember: Bad things can happen when you think of the money first.

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Minimize Losses

Step #2

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  • Never risk any more than 10% of

your account on any one trade.

  • Limit your loss to no more than 1%
  • f the 10%.

Risk Management Guidelines

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Make a Plan & WRITE IT DOWN & Follow It!

Step #3

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  • When to Buy
  • What to Buy
  • When to Sell

Your plan should have three components.

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The faintest ink is better than the best memory.

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1. What criteria will I use to enter a trade? 2. How many stocks will I buy at once? 3. How much will I invest in each stock?

WHAT TO BUY

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  • VectorVest does this really well.
  • I can search for Undervalued stocks that are growing

earnings aggressively and safely.

  • I look for a RV> 1.25
  • RS> 1.15
  • GRT>15% and rising
  • E.g. SASOL

What to BUY

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Sasol

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  • What will trigger me to enter the market?

WHEN TO BUY

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A Universal and Practical trading system

  • The “Spring” system is my main method of short term swing

trading in the Forex and stock market.

  • If followed diligently it produces many fine trades a month
  • It can be traded with the trend and using shares with good

fundamentals as defined by VectorVest.

  • I use it on H4 charts of the Dow Cash and Forex and on

daily charts of stocks.

  • The method works well on m30 charts of the Dax.
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A Universal and Practical trading system

  • The system is simple and finds extremes in any market in

any timeframe

  • The system then looks for a reversal at this extreme which

is confirmed by a reversal pattern defined by a candle or bar chart pattern.

  • Invariably the reversal will be at a FIB level although NO

knowledge of FIB patterns is required to make money with this system

  • In many occasions the reversal will occur at a double
  • bottom. This was referred to by MR Gann as “Lost Motion”
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A Universal and Practical trading system

  • An extreme is defined as a market that’s trading above or

below a 21 period high or low respectively.

  • At the point a reversal pattern from a candle is used to

initiate a position.

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The Spring Trade

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A Universal and Practical trading system…The Spring Trade

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The Spring Trade

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The Spring Trade

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The Spring Trade

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21 day Low trade

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The Spring Trade

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  • The share pulls back to an old high
  • The share is trading above the 89 day average
  • The fundamentals are good
  • The general market is rising
  • The stochastic is less than 20
  • The stochastic is showing reverse divergence with price.

AB=CD trade

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Telkom

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Sasol

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Netcare

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1. What will trigger me to exit the market? Am I using leverage. 2. What will be my stop criteria?

  • Ex – 10% trailing stop

3. What is my profit target? What will I do when my profit target is hit?

  • Ex – 30% gain, if hit I will sell half my positions and tighten stops to

10% below current price

WHEN TO SELL

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Buy Safe, Undervalued Stocks Rising in Price Step #4

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“Good portfolio management starts with buying the right stocks.”

  • Dr. Bart A. DiLiddo

Founder, VectorVest Inc.

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  • 1. Find the best stocks for your

portfolio

  • 2. Manage them well
  • 3. Use a watch list.

Keep this in mind

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Stock price is steadily rising & not volatile Company is making money and growing their earnings Favor undervalued stocks

Before buying any stocks:

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1 2 3

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Rising Earnings Drive Prices Higher

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Favor Undervalued Companies

Value

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Stock price is steadily rising & not volatile Company is making money and growing their earnings Favor undervalued stocks

Before buying any stocks:

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Trade With The Market

Step #5

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Trade With The Market

Step #5

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Trade with the market

The shorts have been hammered

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5 Steps To Success

  • 1. Take Personal Responsibility
  • 2. Establish Risk Management
  • 3. Make A Plan, Write It Down & Follow It
  • 4. Buy Safe, Undervalued Stocks Rising In

Price

  • 5. Trade With The Market
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The Choice

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Do It Alone

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Give us 60 Days… And we’ll use VectorVest to turn your portfolio around…

(Even if you never had success or limited experience in the market)

  • Make money with VectorVest

for 60 days

  • A 2 day Investment Seminar
  • A copy of DR D,s green book

and roadmap

  • Full access to the VectorVest

University $9.95$

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Satisfaction Guaranteed

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Clear Market Entry & Exit Signals Access to both SA and US markets Saves You Time

$118.00 Value

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 Simple, effective way to manage your portfolio  Know when it is safe to buy stocks  Easily find safe, undervalued stocks rising in price  Save enormous amounts of time  Protect your nest egg - know when to exit the market  The best insurance policy for your portfolio  PLUS a Full Guarantee

Only $9.95

www.vectorvest.com/60daysa

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