Unfortunately for most people, the investment advice their parents gave them has proven to be disastrous over the past 30 months. Following traditional buy and hold methods has left many investors with smaller portfolios then that had 10 years ago! With rising taxes and skyrocketing inflation, traditional investors need a new strategy Gone are the days of buy and hold for 30 years and watch your stock portfolio grow. Investment banks and hedge funds now take advantage of the ever increasing popularity of electronic trading,combined with automated "scalp" trading methods which utilize powerful super computers, and leveraged investment vehicles such as futures and options. The ability of big money to manipulate market moves is every growing. Subsequently, the question for the individual investor is: "How to I follow the big money?" Fortunately, there is an answer. The practice of technical trading gives investors the ability to discover when large investors are accumulating or distributing their positions. Powerful technical analysis software creates charts of the price and volume movement of individual markets. It also displays technical indicators that utilize simple to highly complex mathematical formulas based on price or volume. These price and volume patterns combined with technical indicators that ability to track institutional investment, and hence predict future price movement. The problem is that technical analysis based strategies are designed for short term trading, which is a huge barrier to implementation for the average "buy and hold" investor. However, there is a a technical analysis software package that gives investors a method of trading which utilizes a very simple to read technical indicator. This software provides long term (6 - 36 months) traders a method to benefit from the predictive capabilities of technical analysis, combined with a longer term "buy and hold" mentatlity. The technical analysis software implements Marketclub's Trade Triangle Technology. Utilizing this software technology, I have developed a trading strategy that is perfect for trading indicies, ETF's, commodities, and equities over the long haul. It works in bullish markets (the tradition method of buying a stock and holding it), as well as bearish markets (shorting the trading instrument. If you are not familiar with how shorts work, do an internet search for "how to short stocks"). The system combines a long term 12/26 MACD signal on a monthly chart (IE each bar/candle equals 1 month trading range), and the proprietary trade triangle trading system. When there is confluence between the monthly trade triangle, and a MACD cross over, a signal is given. If the triangle is green, and the MACD cross over is bullish, a buy signal is given. If the triangle is red, and the MACD crossover is bearish, a sell / short signal is given.
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