EWATSS® Elliott Wave Analysis and Trade Selection Trading System
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A blind Buy-and-Hold Blue Chip stocks way of investing is too risky, emotionally and financially upsetting, and almost a failure
1. At the outset, we suggest to read following articles which speak for themselves:-
2. You have been told all your life that buy-and-hold is smart investing and you must have a long-term investment horizon.
It is an impractical approach and myth promoted by many Mutual Funds and Brokers for their benefit; not for yours.
If you agree to a long-term investment horizon, you will never complain about losses and you will continue to pay them their management fees, because your advisor will say something like, “Don’t worry, the market always comes back; and besides, you’re not a day-trader; you’re in it for the long-haul.”
Problem is that for buy-and-hold to work, two things have to occur:
(i) You will live forever (which will never happen), and
(ii) You will never need the money (which is most unlikely as otherwise what is the point of investing if you are not booking (rare) profits at some stage, to enhance your remaining life).
Over the past 100 years, there have been four major bear markets. The average bear market has lasted for 19.5 years with an average loss of 62%. This includes the bear market corrections of 2002 and 2008.
Elliott Wave Theory perspective
3. Typical Market Behaviour is that the markets are comprised of (i) Impulse/Motive Wave Patterns with a clear strong directionality in the direction of the main uptrend and (ii) Corrective Wave Patterns which lack directionality along an uptrend and are rather moving sideways/against the main uptrend;
4. Crowd Psychology forms only 13 known Patterns (or combinations thereof) on Market Charts of any stock or Index;
5. 2 of these Patterns are Impulse/Motive Wave Patterns and the rest 11 Patterns are Corrective Wave Patterns;
6. Markets remain in 11 Corrective Patterns about 70%–80% of the time.
7. 2 of these Impulse Motive Patterns are : 1 Impulse Wave Pattern and 1 Ending Diagonal Pattern;
8. 11 of these Corrective Patterns are : Zig Zags, Flats and Triangles, or variations/combinations thereof;
9. We should trade only the Impulse Wave Pattern where you have a high-probability potential for making money through enhancing stock prices;
10. We should not trade the 11 Corrective Patterns where you have a high-probability potential for losing money through depleting stock prices.
Most Investors/Traders are unable to handle ebb and flow of the markets due to their own limitations of no/poor Method, no/poor Money Management, no/poos Mind Management
11. The Investors/Traders enjoy holding the stock when their stock prices enhance during Impulse/Motive Wave Patterns;
12. The Investors/Traders feel the pain holding the stock when their stock prices deplete / go haywire during Corrective Wave Patterns; and Markets remain in 11 Corrective Patterns about 70%–80% of the time.
13. Most of the time, markets are going nowhere and just moving around in a consolidating directionless manner in Corrective Wave Patterns (“The Market Can Remain Irrational Longer Than You Can Remain Solvent” – by John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments).
14. It needs extreme emotional strength to withstand the pain holding the stock even when their stock prices deplete / go haywire during Corrective Wave Patterns; and Markets remain in 11 Corrective Patterns about 70%–80% of the time;
15. Even if the Investors/Traders are at all (and rarely) able to show such extreme emotional strength to withstand the pain and do manage to somehow hold the stock even when their stock values deplete / go haywire during Corrective Wave Patterns, there is absolutely no guarantee even after withstanding so much pain and time spent (read wasted), that their stock prices will recover and go beyond what they might have been once upon a time many months/years ago when the Investors/Traders bought the stock;
16. The capital held up in stock undergoing Corrective Wave Patterns, could have been saved from depletion and could have been better deployed in stocks which were undergoing Impulsive Wave Patterns and, hence, enhancing;
How EWATSS® Trading System helps
17. Kindly see EWATSS® Trading System Concept Notes
18. EWATSS® is an acronym for Elliott Wave Analysis and Trade Selection System. It is a proprietary algorithm for powerful analysis of combination of patterns, Elliott Wave theory, price, fractal nature of markets, momentum, sentiment, directional congruence on multiple time frames etc.
19. EWATSS® alerts traders when potentially profitable phases of markets have just about started during Impulsive Wave Patterns;
20. EWATSS® keeps the traders out of losing phases of markets during Corrective Wave Patterns.
21. EWATSS® also helps traders stay in potentially profitable phases (during Impulsive Wave Patterns) till next losing phases inevitably come (during Corrective Wave Patterns).
22. EWATSS® aligns trading in the direction of the multi time-frame trend which is difficult to judge otherwise. Prevents trading in the wrong direction.
23. EWATSS® Algorithm does not read news; has no political opinion; does not get tired, bored, scared or excited; does not take breaks or holidays; is always ready, willing and available; analyses and selects best trades from any market, no matter how tedious; uses Elliott Wave principles without bias, subjectivity or emotions; does not bore you with unreadable, incomprehensible long texts of market/stock analysis for which you may not have time or inclination; is superbly consistent in its analysis and trade selection;
24. EWATSS® is a unique unprecedented way to easily zero in on excellent high probability trade setups with greatest ease anywhere in the world on a large number of stocks using even a simple smartphone through just five clear colours (Blue – Buy in uptrend, Red – Sell in downtrend, White – Hold status quo, Sandy Brown – Aggressive intermediate exit option, Light Pink – Final Exit).
25. EWATSS® promotes emotionless way for profit accumulation, profit booking and cutting losses in view of simple clear pre-determined methodology of suggesting entries, holding and exits through just five clear colours (Blue – Buy in uptrend, Red – Sell in downtrend, White – Hold status quo, Sandy Brown – Aggressive intermediate exit option, Light Pink – Final Exit).
26. EWATSS® helps prevent waste of time, drudgery, doubts, emotions or confusion in finding good points for entry and exit on a large number of stocks using even a simple smartphone through just five clear colours (Blue – Buy in uptrend, Red – Sell in downtrend, White – Hold status quo, Sandy Brown – Aggressive intermediate exit option, Light Pink – Final Exit).
27. EWATSS® provides a strong perpetual edge in the markets without which no success is possible in the markets.
28. EWATSS® provides a strong perpetual edge in the markets without which no success is possible in the markets.
29. EWATSS® provides complete information suggested for trading stocks i.e. price, stop loss level, number of stocks.
30. EWATSS® adjusts / adapts to the ebb and flow of markets and assists the Trader/Investor to flow along with the markets, rather than rigidly and blindly holding on to losing stock prices during Corrective Wave Patterns.
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