Fellow traders and financial enthusiasts have most certainly seen the most variable markets of a lifetime. The Wizard has isolated the trading element that has caused a minor yet significant nuance in the marketplace. Our two year track record has proven that our predictive capabilities are unmatched. That element that has changed throughout the current pandemic is timing. There are two elements to timing that are seldom talked about as the overwhelming penchant of traders -and even professional training- interpret the timing element in terms of when to enter and exit a market. For certain that is a critical element of successful trading and incorporates the other aspect of timing that we have isolated as being the cause of unveiling fewer opportunities than we have seen before the social crisis began.
Importantly, timing also relates to the duration a trader contemplates when taking a new position in the marketplace.
Shorter term trades have been much more erratic over the course of the last several months. Although we have never seen the likes of what has occurred in our world recently, history has taught us that this premise is not uncommon.
Eventually value does prevail. What our methodology has manifested is that the efficacy of The Wizard has been unaffected in longer term analysis. Recently we made a recommendation to take long positions in the copper market. After that trade became profitable (15%) we then recommended taking shorts (for which existing members sustained a 5% drawdown). The long term analysis of that same market was very different indeed. Utilizing the longer term perspective would have revealed that nothing in the value of the copper market had changed at all and that higher prices were indeed ahead. In fact, on July 8th we did post on our Facebook page that we were confident that the price of copper would continue to rise. Since then that market has experienced significant gains.
This brings us to another element of paramount importance to continued success which is “staying power.” At The Wizard, staying power is an important facet of risk management as well as overall profitability. There are two principal manners in which staying power may be effectuated. One entails having large amounts of capital to place into the markets. The other is to manage what assets you have so that you are not over extended. A trader should never enter a futures or currency contract unless the margin necessary to take that position is 15% or less of your account value. For example, if the initial margin requirement for a particular contract is $4,000 and you have $15,000 in your trading account you should avoid taking trades in that market regardless of how tempting it may be. Over the long haul we guarantee you this is the appropriate strategy.
In order to position futures markets you have to consistently have staying power to make large returns. Remember a trade is not over until you exit the market. Kindly note that this is not the seminal philosophy that has given us the opportunity to identify so many profitable trades but it is a core principal that is particularly important during this time of crisis. The Wizard is results orientated. For certain we have all been tested to a degree never experienced before yet our analysis has revealed this precise element that has changed during this mass social hysteria.
Actual members see much more detail regarding things like risk management, positioning, and aversion. We are a publishing company. The “Five Trade Challenge” should not be considered investment advice but rather a means of observing our ability to identify unmatched profitable trading ideas. Any decision our followers make should never be entertained from the free platform as it is more limited in many of the critical aspects to overall trading success. Even though we do not offer investment advice unique to the circumstances of particular individuals or institutions, actual membership is where a more comprehensive experience with our methodologies and the added value we provide may be obtained.
Stay well and we will all prevail through this experience and come out stronger then we were before.
Daniel Leboeuf- Editorial Director