Strategy Guide for Head & Shoulders Reversal Pattern

This reversal pattern is one of the most powerful patterns, yet it is also surprisingly easy to spot.

If you want to avoid major market crashes, and learn how to buy near market bottoms, then you will definitely want to master this pattern!

Enjoy the video! 😀

Which Stocks I Plan to Buy When the Market Crashes, and the Entry Price Levels

After more than 10 years of patient waiting and accumulating my cash reserves, I am finally seeing some possible signs of the start of a market crash.

If you have been watching my videos, you will know that my ultimate investing strategy is to wait for a big crash before going all-in to scoop up cheap stocks for the long-term.

Many people have been asking me if the crash is over, but since many experts are still bullish, but do not offer concrete reasons for the bullishness, that itself is not a good sign.

At market bottoms, everyone (including experts) will usually be calling for the end of the world.

 

General Market Trend:

This chart here shows the worst case scenario for the S&P 500 (weekly chart), and if the market really does go all the way down, then it will trigger the entry prices for many of my entry prices for the stocks which I intend to buy.

However, as prices are unpredictable, I plan to scale in and buy in bits and pieces when I see good opportunities.

 

Let’s take a look at some of the potential drivers for 2019.

Bullish factors:

  • US policies to boost economy ahead of elections
  • Tech advancements to improve productivity
  • Brexit cancelled?

Bearish factors:

  • Interest rates increasing and more hikes to come
  • Trade war with China
  • Nuclear threat of North Korea
  • Brexit woes
  • Falling U.S. corporate profit margins
  • Record high U.S. corporate debt
  • Illiquidity in the U.S. corporate bond market
  • Extreme, costly climate events
  • A eurozone crisis
  • Europe needs negative interest rates to fight recession
  • Loss of jobs due to tech advancements and automation
  • High inflation in emerging markets

 

My preferred sector is the tech sector, especially after my 1-month trip to Silicon Valley last year.

 

Why Focus on the Tech Sector?

  • As more jobs get automated, the surplus gains will go to the big tech companies
  • Tech companies will expand by buying up the best of the non-tech companies
  • I read somewhere that in 10 years there will only be 100 companies, and in 50 years there will only be 10 companies
  • I prefer to pick the big ones because they will “eat up” the smaller ones

My Top Picks & Entry Price Levels:

  • Facebook (FB) – Entry price: $80
  • Google (GOOG) – Entry price: $750, $600
  • Amazon (AMZN) – Entry price: $1000, $700
  • Apple (AAPL) – Entry price: $130, $100
  • Microsoft (MFST) – Entry price: $85, $60
  • Netflix (NFLX) – Entry price: $200, $125
  • Tesla (TSLA) – Entry price: $250, $180
  • Baidu (BIDU) – Entry price: $130, $90
  • Alibaba (BABA) – Entry price: $110, $85
  • Tencent (700) – Entry price: $220, $170

Yar, I know it seems too cheap, and prices may never get there, but one can hope. 😀

 

Other notable potential IPOs in 2019:

  • Slack
  • Palantir
  • Stripe
  • Airbnb
  • Lyft
  • Uber
  • Didi Chuxing
  • Toutiao

 

I am pretty confident the next wave of financial and economic gains will go mainly into the tech sector, with the focus on applications of AI, machine learning, data science into every aspect of our lives. The biggest winners will be those who own the algorithms.

That said, there will also be risks, such as increased regulation or anti-monopolistic backlash, which could negatively affect the stocks.

Good luck, and get ready to buy and hold for the next 10 years! 😀

Strategy Guide to Trading the Double Top/Bottom Reversal Chart Pattern

The double top and double bottom pattern is one of the most common chart reversal patterns, which can help you identify major market tops & bottoms.

In this video tutorial, I share 3 practical trading strategies you can use to profit from this pattern, and also some of the common “textbook” mistakes that new traders make when trying to tackle this chart pattern.

Enjoy the video! 😀

A Quick Guide to Using TradingView Charting Software

One of the questions that a lot of traders have been asking me is recommendations for trading software, more specifically what charting software I am using.

Hence, in this video I am going to do a quick guide on TradingView, one of the most popular charting software that most traders are using at this point of time.

If you are totally new to this, this video tutorial will save you a lot of trial-and-error, by focusing on the essential features of this software.

Enjoy the video! 😀

How to Compare Relative Strength of Currencies

As a swing trader, I usually monitor 20-30 different currency pairs, and one biggest challenge is deciding which is the best pair to trade at any point of time.

In this instance, the concept of relative strength plays a big role, by helping me compare the strength and momentum of each currency against every other currency to find the pair with the largest potential moves.

And by putting all these together, instead of having to manually plough through 20-30 currency pairs, I can narrow down my work to 5-10 minutes of analysis.

Enjoy the video! 😀