30 Jun 2021, 11:10
Is it stocks? Is it the new kid in the block Bitcoins? Or should we invest in real estate?
This debate among investors seems to go on forever and ever…
Followers of Elon Musk would be champions of Bitcoin and proclaim them to be the “Currency of the New Century”! Die-hard Buffet fans would staunchly support stocks as the only ever-green asset that grows and grows over time. Who is right and who is wrong?
Here’s the hard truth! There is no one good asset class that would grow till infinity and guarantee your prosperity. As with every asset class, each one rides on different waves at different times. Sometimes, stocks may go up and gold may be down.
Investors rotate between different asset classes. If they push the price of Bitcoin too high, it becomes expensive. What will you do as an investor? Well, you sell them and take profit. You only make a profit when you sell.
Now, investors would not be sitting on cold, hard cash. They would want their cash to work hard for them instead of sitting idle. So, where does it go?
Ah, right now, stocks have become really cheap after the sell-off in May. That’s when investors will shift to be buying stocks and the whole cycle repeats itself all over again!
Stocks would have its time in its glory. Bitcoin will have its time in its glory as well. There is no one asset class that will always ride in the limelight forever. Your job as an investor is to identify which asset would be the next one to shine and buy it early before its prices start skyrocketing up.
So, how can you unlock the keys and identify the next asset class to shine?
If Bitcoin is roaring in the limelight and the media is gushing towards it, you are probably too late to enter. This is because Bitcoin’s price would already have risen to the stratosphere. It is too expensive already to think about buying. The media would want to induce the latecomers to buy, FOMO syndrome. But the early investors would already be looking to sell them and take profit at their high prices. You must invest early at low prices in order to make huge profits in whatever investments!
Ok, now if we do not look at the news then how can we find the next “Big Thing”? Here’s where the true Secret lies in…
Have you seen traders drawing myriads of lines on stock charts before? Have you ever wondered why they do that?
Because every line that we draw offers you clues where prices could turn up and make their reversals. By, buying at these turning points, that’s where true profits would be made. It offers you the best chances to make the most profits from the next uptrend.
If prices hit a support line, it bounces up. Traders wait for the price to hit this support then buy their stocks. Because this is the turning point for stocks to reverse up.
Take a look at an example below of one good trade on Honeywell where if you bought at the support line, you would have found the exact turning point and rode up on the next wave up. You could have made almost 20% profits within a short span of 4 months! Therefore, learn how to read the charts to identify these great turning points and you could be consistently making profits as a good trader!
The charts offer you clues on which is the next asset class going to shine.
When stocks have hit their lows at the support lines, the media would not trumpet this and will keep things very quiet. Haven’t you noticed that they only sing their praises after stocks have run up for quite a bit?
They will then con you into buying these overinflated stocks at ridiculously high prices and then the early investors would take profit and sell against you. By that time this happens, did you notice that the stocks are starting to make its next descent down?
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