As you guys have probably figured out by now, I am a bare knuckle investor. I don’t use candle sticks, bots, moving averages, trend indicators, News, Stop losses, contrarian for the sake of it, sentiment, or any other stupid aid humans have developed to try to interpret that which they do not understand to begin with.
I use simple MMT cycles of deficit principles to understand where we are economically Globally, than break it down to US, EU, Emerging market etc. Than I use charts of indices, Bonds, FOREX, commodities and see what they are telling me, on a monthly, weekly, daily, 4 hr 1 hr time frame. I look at chart formations to see if the somethings is undervalued or overvalued. Long term, medium and short term. If I see something that is missed priced I jump on it, using proper money management with position size, leverage and time. I than manage and maintain those positions till such time someone is willing to pay me more than I purchased it for. AS I always say I buy today’s sentiment and sell it for tomorrows sentiment for a profit.
The problem with my approach to investing is, people have a false, pre existing belief of what investing is. Everything in economics, trading books, Youtube, blogs, subscription schemes, financial planning, News, etc.. are geared towards a certain mind set of either Guessing better than the next guy and day trading quick money, or you are too dumb just diversify to infinity and wait. Both equally wrong! Death by 1000 paper cuts or smoke hopeium that your diversification is any good after all fees and that the market is not down 75% when you retire or need the money.
Absent of the GBP Flash Crash which had more to do with my limited $500 puny account that got blown out. My calls have been spot on. It is NOT because I am guessing or forecasting a Trump victory that will give us $1 trillion tomorrow or that Oil is down on high supply, or BREXIT = uncertainty. Nor is it because the BOJ said this and the ECB said that while the FED….
It is very difficult for me to convey the information you require to be a successful investor if your mindset is set astrology (through no fault of yours) and I am talking about science. X=Y plain and simple. If t doesn’t than something is terribly wrong and you must abandon that belief immediately.
MMT is long term tool charting formations are short term entry exit money management tool. So if you don’t understand what I am saying ask me. Clear your mind and accept a new clear way of interpreting what value is.
Author Jim Boukis