Ricks Picks

How Bull-Market Swings Challenge the Risk-Averse

EST

Today’s chart shows why it can be so difficult to make money in a bull market, even when one “knows” how high a stock is headed.  We’ve been confident that Facebook (click on inset) will eventually hit 190, a Hidden Pivot target first aired here more than three weeks ago when the stock was trading around 167.  We still think it’ll get there, come hell or high water. But what an agony it has been to simply go with the flow!

As the chart shows, the stock has made a series of marginal new highs, each followed by a relatively stiff pullback. If you’d been long the stock at April 3’s 177.96 peak, you’d have needed to weather a $5 swing against you just to net a four-cent gain at the next peak.  The 179.19 peak that  followed that one, making you $119 richer on 100 shares, required sitting tight on a dive that at its low would have made you $373 poorer.

Rewarding the Faithful

Although Rick’s Picks tries to keep risk/reward in a 1:3 ratio at all times, a buy-and hold strategy in Facebook, as you can see, subjects one to an effective risk:reward greater than 3:1. Risking $3 to make $1 is no way for a trader to make a living. Tesla shares, incidentally, come out far worse on the risk:reward scale. If you’d held a single share from the September 2017 record high at 389, you’re out $118 at the moment and would need a 43% rally just to break even. Ultimately, it is only the enduringly faithful — in this case, institutional geniuses who have held just a handful of one-decision FAANG stocks for years — who can withstand such horrendous short-term odds.

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Seminar Information page.

Tuesday, August 20, 2019

The consistent accuracy of Rick Ackerman’s forecasts is well known in the trading world, where his Hidden Pivot Method has achieved cult status. Rick’s proprietary trading/forecasting system is easy to learn, probably because he majored in English, not rocket science. Just one simple but powerful trick -- managing the risk of an ongoing trade with stop-losses based on ‘impulse legs’ – can be grasped in three minutes and put to profitable use immediately. Quite a few of his students will tell you that using ‘impulsive stops’ has paid for the course many times over.

Another secret Rick will share with you, “camouflage trading,” takes more time to master, but once you get the hang of it trading will never be the same. The technique entails identifying ultra-low-risk trade set-ups on, say, the one-minute bar chart, and then initiating trades in places where competition tends to be thin.

Most important of all, Rick will teach you how to develop market instincts (aka “horse sense”) by observing the markets each day from the fixed vantage point that only a rigorously disciplined trading system can provide.

The three-hour Hidden Pivot Course is offered live each month. If it’s more convenient, you can take it in recorded form at your leisure, as many times as you like. The course fee includes “live” trading sessions (as opposed to hypothetical ‘chalk-talk’) every Wednesday morning, access to hundreds of recorded hours of tutorial sessions, and access to an online library that will help you achieve black-belt mastery of Hidden Pivot trading techniques.

The next webinar will be held on Tuesday, August 20. Click below to register or get more information.

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