Valeant Pharmaceuticals is a great example of why I switched my trading philosophy to trend following from an approach that more heavily used fundamental analysis. I’ve found over the years that big problems in either an individual stock or and index of stocks are hard to diagnose and determine the best course of action using pure fundamental analysis. Often you find that buying a dip in an emerging bear market can lead to disaster and big losses. Trend following using Stage Analysis provides simple rules that can be followed to avoid big downtrends whether they are in an individual stock or an index of stocks.
In this video I go over the ongoing pullback in the uranium sector from a Stage Analysis perspective. I also discuss the second ideal buy point in Stage Analysis which is the pullback that often happens to the breakout level when a market first moves into a Stage 2 bull market.
The solar sector has caught my attention this year. I talked about the potential for this sector in a video I did earlier this year discussing sectors I’m watching for 2017. In this video I discuss the recent increase in volume in some solar stocks and my interpretation of the price action from a Stage Analysis perspective.
Learning from the past is a great way to become a better trader and in this video I go over the last major uranium bull market from mid-2003 to mid-2007. I discuss mistakes traders make when trading in a major bull market and talk about how critical it is to get positioned early in a bull market. I also talk about how having a long term game plan can help you overcome the short term psychological stress that is caused when pullbacks occur.