Introduction
Whether you’re a long term investor or a short term trader your objective is clear: 'you want to make money'. Your sole purpose is to identify opportunities before the masses then carry out your plan with precision. Far too many investors and traders in today’s market have paid huge amounts of money to acquire knowledge and gain Stock Market Advice enabling the ability to make informed decisions that produce consistent profits. The ironic thing is, the share market does not reward knowledge unless it is applied correctly and this may take years to perfect. Why? Because you may not have mastered emotional control.
Comments from the Bluesky Report’s founder - Mark Van Oirschot
"After many years of developing myself into a professional trader and educating hundreds of individuals, I am absolutely convinced it is possible to make big money out of the markets. I also believe the majority of individual investors and traders will never make a success regardless of their intentions. A professional trader or investor is qualified, just like any other professional. They spend time acquiring skills and experience and even then there is no guarantee that he or she will make it."
The wise copycat
Unless you have a compounding desire, the time, and the capital behind you to become a successful independent investor or trader, you will be so much better off financially and mentally to simply pay someone who is highly experienced with knowledge in risk management and investment selection. Then, just copy what they do!
Jesse L Livermore made over one hundred million dollars during the crash of 1929 while the unprepared public failed to sell and went to the wall. Obviously, you would have been better off taking his advice at the time and copying his actions.
Know the risks before you start
Before you try your hand at the share market consider the following :
- What shares should I buy? Choose correctly and you might make money, but buying is the easy part.
- When do I sell? You will make the most money knowing when to get out of the market and when to stay out.
Livermore said it the best: "I didn't make my millions from thinking, I made my millions from sitting - got that! Jesse Livermore was famous in the early 1900's for taking big profits out of the market and was savvy enough to remain in cash at certain times.
The Bluesky Report Approach
The Bluesky Report primarily focuses on shares that are likely to rise in price. We do not like losses. It is much more beneficial to invest in a healthy company and take some profits sooner rather than later and much healthier for your psychology too. But it is the large profits that will make the real difference. Our unique strategy focuses on these principles and separates us from the herd giving you an edge over the market.
All positions encompass a two stage process prior to completion.
First Stage
When entering a position it is critical to protect your capital in the infancy stages. For this reason, during the early stages we take a Stock Trading approach and buy on the way up with a predetermined profit target sell price as part of the strategy, protected with a stop loss order for risk management purposes. When a suitable profit is declared we suggest to sell half, minimising irrational behaviour caused by high level emotions.
Second Stage
We then adopt an investors approach with the remaining half. Success in the share market is derived by generating large profits and controlled losses while maintaining a low emotional state of mind. By selling half you should feel refreshed and mentally tough, giving you the staying power to ride the remaining position into much higher prices. This effective approach protects your capital from full depletion, should something go wrong. It also increases your returns over time as a full sell off in the initial stage eliminates further possibility of making even greater profits.
Technical Analysis and Risk Management
Our founder is very experienced in price or technical analysis. He has spent his life studying key traders like Livermore, Gann etc. We are positive he is one of a kind; sometimes he will turn his charts upside down to gain another perspective. He is always saying: ‘maintain an objective mind and the market will reward you.’
The Bluesky Report is capable of identifying strongly trending stocks quickly. We work very hard at identifying companies that fulfill our technical criteria before we go to work analysing the fundamentals. We also look for companies with substance and opportunity. We avoid companies that we have nicknamed ‘Mad Hatters’. The last thing you want in your portfolio is a company capable of pulling a surprise out of its hat.
Mad Hatter Syndrome
Mad Hatters are common throughout small exploration companies. The illustration below depicts such an occurrence. During March of 2005, Bass Strait Oil Co announced the results of its drilling campaign and shares immediately began trading at 0.345cents. Prior to the announcement BAS shares were trading around 0.73 cents. By May of 2005 the share price had fallen to 0.115 cents – a devastating loss of 84 percent. See chart below
Avoid ‘Mad Hatters’.
Investment and Stock Market Trading success depends on three major factors -
1) Stock Market Trading selection
2) Timing
3) Risk Management
Stock Selection
Our unique technical approach combining fundamental analysis means we are capable of identifying companies that are likely to appreciate in price relatively quickly with the backing of key factors driving price. We believe this is critical for long term success.
Many investors and traders focus solely on technical analysis or fundamental analysis as a tool for Stock Market Trading selection; rarely do they consider both angles. We believe this approach creates a higher level of risk than otherwise required. Relying solely on fundamental analysis as a selection tool can be very frustrating at the best of times. Even if you do get it right the market may not currently agree and you could find yourself in a dormant or falling stock for a considerable period of time.
Combining Stock Market Trading Selection and Timing is more rewarding
Finding a company worth more than its current share price is the first step towards successful investing however a far superior strategy is to buy when the market is ready to pay far more. To help you understand how the Bluesky Report is capable of being a worthy investment tool we have provided an example below.
During 2002 and 2003 our founder informed seminar attendees to focus on Gunns Limited as an investment vehicle. Our Stock Trading selection and timing principles had identified Gunns as an opportunity. From 1993 right through until 2001 Gunns Limited share price slept. For eight years all the fundamental analysis in the world would have been a waste of time. Not to mention the lost opportunities elsewhere should you have remained a shareholder. Our unique selection / timing approach would have kept you out of Gunns Limited until February 2001. See chart below
Gunns Limited (GNS) monthly chart from 1993 to 2005
You can see how our selection / timing approach identifies shares that offer both substance and price movement. Gunns Limited turned out to be one of the most profitable stocks between February 2001 and March 2005. Our selection / timing approach meant terrific gains were made during the 2002 bear market . This can be quite refreshing when many others are experiencing significant losses.
Know what you’re buying
Ignoring the fundamentals and concentrating solely on technical analysis can be a risky business. You could find yourself buying into a company that offers little or no substance and perhaps is purely price driven on investor hype. If earnings are poor then your shares are at risk of falling in value. This was evident during the early Tech Boom of the late 1990’s. Many of the early internet related companies were providing little or no earnings. Their posted websites were simply a house of cards with little or no ability to produce revenues. Investor speculation and greed fuelled higher prices until the market finally decided one day - it had enough.
Sure the charts looked great, prices were rising and stocks like Solution 6, Davnet, Melbourne IT and Securenet were the talk of the investment community. Then one day in April 2000 forty four billion dollars was wiped from investors pockets and it all happened in 20 minutes. Once again as history repeats individuals, who borrowed on a dime to buy bundles of shares with little or no substance went to the wall.
Stay in Shape
Investment excellence is derived from a healthy balance of risk and caution, significant reward, plenty of patience and a disciplined approach. It is impossible to derive above average returns without some type of exposure to risk. The best traders in the world are very good at sticking with a profitable investment vehicle and sometimes they will wait years before selling. They also learn to recognise a dud when they see it.
Avoid the common mistakes
A common mistake investors and traders make is they fall in love with their shares when their shares fail to love them back. The most devastating cause for loss of capital is failing to liquidate a poorly performing investment, hoping that it will recover. Hope never makes anyone money, it can however lead to fear which may cause you to act irrationally. Subscribing to the Bluesky Report is such a worthy investment. By following our Stock Market Advice, you will avoid most of the common mistakes investors or traders make - this alone is worth far more than the subscription fee.
Ask yourself these questions and then consider the Bluesky Report
1) Do you understand what a minor trend is?
2) Can you recognise a major trend?
3) Do you know what accumulation is?
4) Do you understand distribution and can you identify when a stock is being distributed?
5) How much profit do you need to make per trade for every dollar you are willing to lose in order to be a successful trader.
6) Do you have a Stock Trading plan that includes a purchase method, a profit taking strategy and risk management including opportunity risk?
7) Are you likely to feel bad when a loss comes?
8) Will you emotionally over inflate your profits?
9) Are you likely to give up if and when things go wrong? We won't!
10) Do you think you could make more money given your knowledge and Stock Trading experience than people who do this for a living and have been doing so for years?
Perhaps after reading these questions you will agree the Bluesky Report will provide you with superior assistance in all areas of Stock Market Advice, Stock Trading, and Stock Market Trading. Blue Sky Report will vastly simplify the way you approach the share market. The cost of this report is most likely less than the cost you will incur from a simple yet avoidable mistake. Help us help you and subscribe to the Bluesky Report today.