First off….I wanted to say Thank You toYOU, the viewers of this blog. I appreciate how many of you have shared this site with family, friends and co-workers. I remain honored and humbled by the global viewership.
I receive tons of quality emails, often I am ask…. what are a couple of my main “investment beliefs/strategies.” Thought I would share a couple of my main thoughts that have helped me over the past 30 years.
1) PLANT A SEED FOR GROWTH, DUE TO A STRATEGY…. yet don’t expect it to turn into a world record pumpkin!
My strategy uses the “Power of the Pattern” to find quality price/entry points. The day I plant the seed, I also have ANOTHER PLAN….TO HARVEST! A strategy/plan to harvest if the position doesn’t work out and a strategy/plan to harvest at certain resistance points in the future. When a fruit or vegetable becomes ripe, what do you usually do? Some people, like the lady above can grow world record sized crops… I am not attempting to do that!
Some attempt to “Buy, Hold & Hope!” My strategy…Find a good entry point and “Harvest” at resistance.
2) ”DON’T RIDE THE HORSE BACKWARDS!”
Often, it seems due to an opinion or fundamental report, investors seem to want to FIGHT THE PRICE TREND or PRICE ACTION!
Some watch a rally and say it “shouldn’t be happening due to X, Y or Z” and some watch an asset that they own continue to fall in price and say “it will find a bottom soon or I will sell it when it gets back to my entry point!”
My strategy is to RIDE THE PRICE TREND in the direction it is going, without creating a laundry list per ”WHY” a particular price action is taking place! I don’t want to be right about an opinion, I want to make money…
Thank you for letting me share my passion with you on a daily basis. I will continue to look around the globe on a daily basis to find patterns that can help us towards “inflating our portfolios, regardless of market direction!”
All the best to you, Chris
Rich,
Thank you for this comment, per IYR! You are SPOT ON!!!
On August 29th I suggested for investors to purchase Homebuilders (XHB), totally due to the “power of the pattern” (multiple support points and a falling wedge)
I look at hundreds of charts daily, looking for patterns that have extremely high odds of producing certain types of movements. The last thing I do after finding this pattern, is find out what it is! The product/asset is the last thing I do, not the first.
On August 1, if I was thinking fundamentally wise, would anyone have considered “home builers?” Doubt it.
You are spot on Rich, that more often than not, price action Trumps the news. By the time a story becomes crystal clear, how much has the price moved in either direction?!?!?
Thank you for your viewership and quality thoughts.
Chris
Yes…great stuff for us visual learners!
A chart that has struck me is the IYR…the DJ real estate ETF. It is fascinating given the state of RE and CRE in the US and I am struck by its ability to grind higher. I think this is a “picture” worth discussing in the context of the chart vs the fundamentals.
Thanks Chris – for the wonderful work you do…
Chris,
So true…tremedously valulable to be able to ride the price wave and ignore the media, noise, etc.!
Do you have a subscription for your picks? You must have altruistic reasons for providing your charts/opinion for free, but you could easily charge for it.
Much appreciated,
Billy
Thank you!
As much as I enjoy charts/charting, all by themselves they can be a tad bit dry/unmemorable all by themselves.
Plus life is tooooo short, why not have a little fun when making money!
😉
That’s exactly what is happening here … too. It it genious to have some funny picture associated with a certain market situation, it just STICKS in your mind. A plain old chart would never do that. I remember a lot of market situations this way, for a long time, together with the joke 🙂 WONDERFUL – THANKS Chris.
Thank you…
I began using “images” in my seminares/presetnations over 10-years ago. I have been amazed to run across people who saw me speak years ago and say they remember images from my presentations.
I continue to work towards providing research that is of value to the viewers and while maybe having a little fun along the way!
i find your posts thoroughly entertaining (like the massive pumpkin) a lot of color. thanks for sharing your knowledge and making it interesting.