3 Reasons Most People Never Make Money in the Stock Market · • The system is simple and finds...

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 arriving early! The talk will begin shortly.

3 Reasons Most People Never Make Money

in the Stock Market

5 Steps you MUST know before

spending another Rand

What’s the hardest part about making

money in the market?

95% fail

CORE

PROBLEMS

Problem

#1

Successful people concentrate on

doing their job well.

Successful traders DON’T treat

trading as a hobby.

Your Goal =

Make the Best Trades

• Don’t be concerned with the fruit of your

action

The fruit will come of its own accord.

Focus on the process

Problem

#2

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

Problem

#3

Market Direction is 80% of the task

Take Personal Responsibility Step #1

Your Goal =

Make the Best Trades

• Success is actually a short race….a

sprint fueled by discipline just long

enough for the habit to kick in and take

over.

Trading Discipline

Remember: Bad things can happen

when you think of the money first.

Minimize Losses Step #2

• Never risk any more than 10% of

your account on any one trade.

• Limit your loss to no more than 1%

of the 10%.

Risk Management

Guidelines

Make a Plan &

WRITE IT DOWN &

Follow It!

Step #3

• When to Buy

• What to Buy

• When to Sell

Your plan should have

three components.

The faintest ink is better than

the best memory.

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

• 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

Sasol

• What will trigger me to enter the market?

WHEN TO BUY

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.

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”

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.

The Spring Trade

A Universal and Practical trading system…The

Spring Trade

The Spring Trade

The Spring Trade

The Spring Trade

21 day Low trade

The Spring Trade

• 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

Telkom

Sasol

Netcare

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

Buy Safe, Undervalued Stocks

Rising in Price Step #4

“Good portfolio management starts

with buying the right stocks.”

- Dr. Bart A. DiLiddo Founder, VectorVest Inc.

1. Find the best stocks for your

portfolio

2. Manage them well

3. Use a watch list.

Keep this in mind

Stock price is steadily rising

& not volatile

Company is making money

and growing their earnings

Favor undervalued stocks

Before buying any stocks:

1 2

3

Rising Earnings

Drive Prices Higher

Favor Undervalued Companies

Value

Stock price is steadily rising

& not volatile

Company is making money

and growing their earnings

Favor undervalued stocks

Before buying any stocks:

Trade With The Market Step #5

Trade With The Market Step #5

Trade with the market

The shorts have been hammered

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

The Choice

Do It Alone

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 $9.95$

Satisfaction Guaranteed

Clear Market Entry

& Exit Signals

Access to both SA

and US markets

Saves You Time

$118.00 Value

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