Tuesday, November 19, 2024

🤔 Clueless Investors Fail to Do This

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AN OXFORD CLUB PUBLICATION

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Liberty Through Wealth

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EDITOR'S NOTE

Below, Chief Income Strategist Marc Lichtenfeld shares why he uses technical analysis - and why investors would be smart to consider this trading tool.

Keep scrolling to learn how to level-up your trading...

But first, let me share something extraordinary happening with Marc's trading recommendations...

He's uncovered a powerful market anomaly that occurs on the 23rd of each month, creating the perfect conditions for potentially massive profits.

Looking back, this could have led to one-month windfalls as high as:

  • $12,150 in February
  • $9,550 in March
  • $4,700 in April
  • And $18,400 in May

All starting with as little as $5,000 in capital.

Click here to discover the secret.

- Nicole Labra, Senior Managing Editor

THE SHORTEST WAY TO A RICH LIFE

I Was a Clueless Investor Until I Discovered This

Marc Lichtenfeld, Chief Income Strategist, The Oxford Club

Marc Lichtenfeld

When I was a kid, I was a bit sloppy. My mom was always on me to clean up my room.

In college, I was no better. Living with three other guys didn't exactly turn me into a neat freak. Our house probably should have been condemned.

But as I've gotten older, I've come to crave order in my life - so much so that I was shocked when I heard myself pleading with my daughter to please clean up after herself to keep the house looking nice.

Nowhere is that desire for order more apparent than in my trading. Maybe it started at the beginning of my career as an assistant on a trading desk, back when I couldn't make any sense of the numbers dancing across my screen.

I was clueless as to how traders decided when to buy and sell. I needed some way to create order out of all of those numbers and symbols.

Now when I trade, I use technical analysis.

Technical analysis - the use of stock charts to inform buy and sell decisions - is great for creating a trading plan.

As I always say, technical analysis is not a crystal ball. But it does help you increase your chances of being right and, just as importantly, minimize your losses when you're wrong.

Everyone's trading style is different, and there are lots of technical analysis tools that fit any individual's preferred method.

As a long-term investor, I'm a value investor. I like to buy beaten-up stocks and watch them bounce back over time.

So it's no surprise that, as a trader, I do the same thing - just with a much shorter time horizon.

With the goal of entering a trade at a discount, I may buy a stock that's predominantly moving up a trend line and yet has momentarily returned to support - the price level at which a stock's downtrend reverses.

For example, if I were interested in buying Nvidia (Nasdaq: NVDA), I would wait until the stock returned to the blue trend line, which is acting as support.

See that in action in this chart...

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[Show Me the Chart]
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