It’s a bit of a Car Crash at the moment isn’t it?
On the back of 9 Weeks of absolute bliss (which can make any average / poor trader think they’re a superstar) - it’s utterly amazing to me, the negativity that is now spreading around the Trading / Investment world and the major Media Outlets…. because just a week ago, we were potentially looking to move beyond key levels in the market & take the next leg higher.
Oh how things can flip on their heads in 7 days. Welcome to Wall Street I hear you say.
I suppose the good thing about following me, is that you normally get the warning well in advance, and my analysis the other day with the rather “straight to the point” Subject Line - “Market Decline Incoming” and a link in the email saying “Rocket Ship Failure” - I think it’s fair to say, myself and my clients were incredibly well prepared for this, and we have managed our positions in a manner that puts most Wall Street Traders to shame.
If that blog didn’t reach you… how about the Weekend Analysis and also the Half Time Report - both of which urged caution? I released these for a reason… I wanted to give everyone a heads up on what’s going on… because I truly care about every single 1 of you that follow my work, and I thank you all once again for all the kind emails I’ve received this last week.
I understand I know more than most, I get that, but I also understand the need to be flexible in my approach, and although I have a deep understanding of the Markets, it doesn’t mean I can save the world and wave my magic wand and magically make your open positions advance in price, because the harsh truth of it is, some of you reading this, have made some horrifically bad decisions, and some of you have doubled down on losing positions (which you probably know by now, is a horrifically bad concept).
I’m now (once again) receiving an obscene number of emails / messages asking me when this drop in the Market is going to end, so rather than respond to everyone individually, let me just throw this out there for everyone to critique and scrutinize - because I don’t get it wrong very often, and I think most of you guys know this.
You also know I have zero issues with going “on the record” with what’s going on and what we can expect to see next, and rather than sugar coat things and preach the amateur method of “buy the friggin dip”… I’d rather give some insight into what myself and my group are doing at the moment, and why there is a huge element of caution out there. We all remember October - December don’t we?
What we’re doing?
Personally - I’m 100% on cash, most of my clients are also on cash… an obscene amount of money has been made these last 9 weeks…. and this is what it’s all been about, but like all good runs, it pays to know when to tighten up our portfolios and maximize profits… this has been executed perfectly by my group.
It’s now a game of patience for moving back into the Market.. we’ll be surgeon-like in our approach… and 1 thing is for sure… we won’t be catching falling knives.
It has to be said however, that some of my clients, who are now incredible Traders / Options players in their own right, and those that are looking to take advantage of the decline, are doing so by trading Inverse ETF’s / Defensive Stocks / Commodities - it’s phenomenal to observe - the teacher really is watching his students surpass all expectations and they’re producing numbers they fully deserve to earning, because they all put the work in, and they all learned my no nonsense approach and have also added their own flavor to the mix, I couldn’t be prouder.
The Honeystocks approach I hear you ask?
It’s simple really… we filter out the noise… we Identify the optimum entry… we manage the position… we exit at profit… what’s so difficult about that?
Some of you follow various social media’s looking for tips, and some of you follow this blog, hoping to get a heads up on what’s going on…. this is not the way to do things successfully, because you should understand, that I follow absolutely nobody… I’m a cast iron independent thinker… and I take the view that everyone should be the same in order to be successful.
I don’t follow the “experts”, because I don’t need to…. I do it better than every single 1 of them and I get disillusioned when I listen to them.
Why do I get disillusioned with the “experts” I hear you ask?
I’m not easily frustrated, but there is something that’s grinding my gears at the moment, and I’m still seeing the utter clown-foolery (I know that’s not even a word - I just made it up - and I think it needs added to the Oxford Dictionary to describe stupid Trading people) and it’ll come as no surprise to many of you who follow me closely, but it’s the “experts” out there preaching the concept of “Averaging Down”.
I take the view, that these “gurus” should be removed from a position of influence, and I should replace every single 1 of them, because when a severe Market drop occurs (like we seen in October - December), it’s only those that have zero discipline and those that add to losing positions that lose everything…. and that’s certainly not where you want to be (as a Trader) - I feel like my message to the world is a logical one, and it’s why I’ve got 1 of the best Trading Groups on the planet, and such a large / loyal following, and it’s why hundreds of thousands of dollars are made within my group - because it’s discipline, it’s structure and it’s a rule set that pays off in the long term… and how about making money in a declining market? No problem… I’ve got that covered too.
What would be the solution?
I think the world needs ME shouting at the camera - Jim Cramer style (in my thick Scottish accent)… What the hell you doin … stop buyin that stupid bloody stock, it’s falling down harder than the time Bobby Leach, who in 1911 became only the 2nd person to survive a fall from Niagra Falls (he was in a steel barrel for those that don’t know the story)… but get this… that’s not the hard fall I’m talking about… Bobby Leach survived that fall … but he died years later after slipping on an orange peel (that’s the hard fall I’m talking about) - don’t be Bobby Leach… don’t be stupid enough to jump in a barrel… and watch your step.
If you’re an Investor (and a good knowledgeable 1 at that), that’s a different story - but the dollar cost averaging down concept might have had its place 20 years ago… but I do take the rather logical view that I’d rather not have to deal with the utterly demoralizing mental hurdles that accompany this approach - there’s a lot to be said for having no stress in our lives.
Over the last 6 months, I’ve personally spoken to traders around the world (some of whom cried on the phone to me) who are currently down millions of dollars, and wanted my guidance… many of them simply don’t like my no nonsense approach, and when I tell them they need major surgery with their trading (I say it in as nice a possible way - with compassion), they often dismiss my views and simply carry on doing the same things over and over expecting different results… I often pick up on this personality trait quite early on in a conversation, and when I do pick up on it - it’s often followed up with the words,
“I’m sorry, but I don’t think we’d be a good fit to work together”, here’s the name of someone I think might be better suited for what you’re looking for.”
If you get on a call with me, it’s a good thing… I’m super nice to talk to… if I make you an offer… its a good thing… and sometimes having the opportunity to work with authentic / genuine world class Traders / Educators, who have your best interests at heart, and who will do EVERYTHING in their power to make you succeed is worth its weight in gold, and if that’s not enough… I’ve got my back up army of Incredible Traders within my Group (who’ve all been through the journey) - and who also provide incredible Market insight.
So if you’d like to chat about learning our approach (in it’s fullest) and would like to be part of 1 of the best Trading Communities on the planet - it’s simple really.