Stock Market Strategies
There are many strategies used to evaluate, leverage, predict, and time the stock markets. While every individual trader and trading group aspire for success and financial abundance, it is often difficult to advance above the break-even point. For instance, many people are involved in Mutual funds. Due to the timing of their entry and exit into the fund, an estimated 50% of people lose money. And, those who stick with a Mutual fund over a long period of time, average about 7.7% returns, except for the last decade which actually averaged negative returns (losses). Mutual funds trading equities from January 1, 2000 to January 1, 2010, have lost an average of 15% or more. That has a great detrimental effect on one's retirement fund.
Stock Market Timing Service for Trading and Investment
Our trading strategy begins with determining the overall market direction both from the economic and technical points-of-view.
Subsequently, we like to trade with the overall trend of the market using our technical analysis tools developed from 29 years of research and trading experience. We use monthly, weekly, and daily charts to analyze the market's strengths and weaknesses - as well as our own proprietary theories - to time the buying and selling of the stocks.
This includes the Dow Indicator's ability to time the overall markets turning points, which often coincides with a stock's turning price. (Track Record)
Three Overall Strategies
There are three general strategies to determine which stocks to buy and how long to hold them:
- Buy and Hold Stock Strategy (long term investing)
- Fundamental Analysis of Stocks (intermediate to long term investing)
- Technical Analysis of the Stocks (short to intermediate term investing/trading)
Buy and Hold Stock Investing Strategy
With this method, a person studies the fundamentals of a company to determine its long-term potential to earn profits. Many people use common sense to determine if a company will keep growing and earn profits. A good example is when a new industry was created by the invention of personal computers. The companies such as Microsoft, Apple, Cisco, and Intel, which had the lion's share of the new industry, would continue to earn profits since the market was growing rapidly. When one believes a company is going to continue to be profitable, its shares are bought and held for many years. Sometimes these stocks are passed on from one generation to the next.
Historically the value of stocks will increase at least as much as the inflation. This is so, because a company has to increase the price of its goods to keep up with inflation, which results in increased revenue to the company.
Besides increasing the price of goods due to inflation, a company strives to increase its profits by selling to more people at higher prices. When this is achieved, more profit per share can be generated and the value of the stock will go up.
Since more people buy goods during good economic times, it is more likely a company will be able to earn profits, and its stocks will go up. Conversely, during a bad economy, people have less buying power or are more cautious in spending their money; as a result, a company's sales and profits will go down, which will lead to its stock price to decline. This is the main reason why the general stock market will follow the up and down economic cycles.
Below is a table that shows the average annual gains for Dow Jones Industrial Index for many decades.
Dates: |
Dow Jones Average Annual Returns Since: |
|---|---|
| 1920 to June 2010 | 7.10% |
| 1930 to June 2010 | 6.60% |
| 1940 to June 2010 | 7.30% |
| 1950 to June 2010 | 7.90% |
| 1960 to June 2010 | 6.70% |
| 1970 to June 2010 | 7.70% |
| 1980 to June 2010 | 9.50% |
| 1990 to June 2010 | 7.70% |
| 2000 to June 2010 | -0.07% |
| 2008 to June 2010 | -9.50% |
Fundamental Analysis of a business involves analyzing its financial statements, its management, and competitive edge over its competitors. Analysis of the financial statements includes ratios such as P/E ratio, earnings yield, gross margin, profit margin, return on equity, return on investment, etc. The assumption is that if a company's finances are good, they will continue to be good in the near future and therefore the value of the stock should continue to climb. One other reason to analyze a company's financials is to see if its stock is undervalued. Mutual funds are heavily engaged in fundamental analysis and have in the past several decades averaged about 10% annual returns, which is same as the major indicators such as the S&P 500. They also suffer the same big drawdowns as the markets.
Technical Analysis of StocksTechnical analysis falls into two major categories. Analysis using indicators, and analysis using support and resistance prices. Technical analysis seeks to identify price patterns and trends based on past data. The theory is that market patterns repeat and there is a way to analyze the price patterns that emerge.
The principles of technical analysis derive from the observation of price data over decades. The oldest known hints of technical analysis appear in Joseph de la Vega's writings of the Dutch markets in the 17th century. In Asia, the oldest example of technical analysis is thought to be a method developed by Homma Munehisa during early 18th century which evolved into the use of Candlestick techniques.
Dow Theory is based on the collected writings of Chares Dow, founder of Wall Street Journal. Other pioneers of analysis techniques include Ralph Nelson Elliott (Elliott Wave) and W. D. Gann (Gann Angles, Gann Square) who developed their respective techniques in the early 20th century and where successful traders.
Many more technical tools and theories have been developed and enhanced in recent decades, with an increasing emphasis on computer -assisted techniques.
Technical analysis is as much a science as it is art. Analysis of price patterns is greatly enhanced by years of research and experience. A good technical analyst can beat the market averages by a wide margin.
Why We Are Successful When Others Fail
We do overall economic analysis, followed by long-term, technical analysis. And, for Entry and Exit points, we use short-term technical analysis. Markets are dynamic and ever changing. With 29 years of research and trading experience we have built resilient market analysis methods that adjust to market changes. Our experience helps us and you navigate all kinds of market conditions to much better protect your assets and increase your gains.
What we offer you?
+ Market timing service for Stocks, Currencies, and E-mini S&P 500 Index.
+ Asset protection against down markets.
+ Asset gains that are above industry average.
Real-time ASSISTED TRADING for e-mini S&P 500 and Currencies through Mirus Futures.**Special offer: One-Year E-mini Membership option (up to $209 savings annually!). For a limited time, this option includes Forex and Stocks timing services for NO ADDITIONAL CHARGE! (Stocks and Forex timing services subject to change and removal from the Dow Indicator System at the discretion of Dow Indicator. However, your current subscription and discount will remain intact and unchanged)**
Why we are different?
Unlike most companies we have a verifiable third party brokerage firm real time executed trades track record.
We have been successful in helping our members earn profits during up and down markets.
Markets are dynamic and ever changing. With 29 years of research and trading experience, we have built a resilient market analysis methods that adjust to market changes. Our experience helps us and you navigate all kinds of market conditions to much better protect your assets and increase your gains. See testimonials.
