The Investor
Not every person wants to be a day-trader, but every person should be want to be an investor, because that's how you become rich!
The Position Trader & Investor
The old adage, "Time in the market is the key to success, not Timing the Market"
What if you can do both?
The S&P 500 index is a basket of 500 large US stocks that represents the US stock market. The index has a historical average yearly return of around 10% to 11%, excluding dividends, since its inception in 1957. 15% over the past 10 years.
The average return of fund managers varies depending on the type of fund, but hedge funds had an average annual return of 11.02% over the past 10 years.
​
For Australian equities, the long-term average return has been around 8%, including dividends of 4%. Nowhere near as good, and if you invest in a managed fund with a typical fee, sometimes as high as 2%, your actual rate of return will be significantly less.
​
​
However, is 11-15% return enough on a yearly basis?
Wouldn't it be nice if we could get closer 50%, or even more rate of return by using these simple steps.
​
Above is the S&P 500 from 2008 until 2023. Over the past 15 years it has risen over 700%, or an average of 44% each year from those lows. It’s important to note that past performance is not indicative of future results, but the best returns are always when the Market drops and then continues on its upward trajectory.
​
So where do you Buy?
​
What strategy should we use for investing the S&P500?
The Investor.
First thing is we apply our Proprietary Indicator over the Yearly Timeframe, which optimizes the best level to take an investor approach and dollar-cost-average into the market each time it hits.
As described in the book 'Time Price', the compounding effect of this strategy is mind-boggling.
Over a 15-year period, it would have allowed the investor to add to their positions on 9 different occasions, but the rate of return will easily beat any fund manager on the market.
The Investor's approach is to not sell, but to accumulate over the long period of time and into retirement.
​
So what is the position trader's approach?
The Investor & the Position Trader.
Secondly, we add another Proprietary indicator, this time it optimizes where the Market can go and how high.
We can already forecast that the Market can increase from the 2022 and 2023 lows another 100%. And if it hasn't reached 6,245 in 2023, it will only be higher in the following years.
The 'Position Trader' can decide if they would like to exit at those highs and move any gains back down into the trailing Balance point in a 'future year', or they can turn and implement other techniques used by the Secondary Cycle Trader and take positions more frequently across multiple markets. Because even though the S&P seems volatile on occasions, it has only dropped 27 times over the past 40 years more than 10%.
​
It's wise to look at other markets like Crypto that has more gyrations within the Secondary Cycle to smash your rate of returns out of the park.
BITCOIN - Different strategies for different markets.
​
The Investor & the Position Trader.
Bitcoin and crypto is a different beast, but it's lucrative when you apply the information that we provide. The Methodology is the same, but the cycles are different, and the rate of return is much greater.
If we adhere to repeating cycles, then 2023 should hit 49k, stall and come back down and then take off to new highs in 2024 around 130,000, which is nearly 10 times the return in 2 years, something that took 15 years in the S&P to achieve 7 times.
​
And what's great about the volatility in Bitcoin, it allows you to reenter the market using the same yearly timeframe and potentially earn another 100% in the same year as it becomes support, effectively doubling you initial 10X return. The strategy only changes once price move inside the new yearly timeframe and back under the 50% level.
It’s important to note that past performance is not indicative of future results and that investing always carries risks.
​
Now to look at THE SECONDARY CYCLE TRADER