Goldman Sachs (NYSE_GS) declared record earnings of $3.4 billion for the three months prior to June, only months after it accepted government assistance. My gut reaction is how can an institution that so embodies Wall Street be making so much money as if the credit crisis never happened.
In today's short video I'm going to be analyzing the stock of a Wall Street juggernaut known as Goldman Sachs. The video shows you how you could have used MarketClub's "Trade Triangle" technology to make a ton of money just like Goldman Sachs.
I'd love to hear what you think about the Sachs bounce back or your thoughts on where this stock is headed in the future. Please watch the video with my compliments.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Adam:
I really enjoy your videos. I use your service and I like it very much. I have a question for you. I would love to see you do a video where you talk about position sizing. For instance with GS (or any stock) on a buy signal would you add to an inital position if it went higher? If so where? Also if a tade goes against you would you wait to get a red weekly triangle to get out or would you exit sooner with a tighter stop? I tend to set stops tighter than this, but wondering if that will hurt my results long term?
thanks,
John
John,
Thank you for your feedback. I am hoping to make a video on position sizing and how to utilize money management in your trading. I hope to get to it very soon.
All the best,
Adam
Chuck,
It doesn't spring to mind.
I wish I could be of more help. I am some what familiar with the concept, but I do not recall having made a video about it.
Thanks,
Adam
It was not a video it was a advertisement on Phil's Stock World web site but I don't find it there now.
The video is very good especially after reading your explaination to Dean. I usually buy at the bottom of the curve and sell at the top (after confirmation of course) which amounts to a few days beyond bottom dead center (BDC) and top dead center (TDC). I am using your trade triangles as another confirmation to my visual calls (I usually call it a day or two before your trade trinagle shows up). Your charts are much nicer than Yahoo by the way. When/if you add stock options I might be converted from Yahoo. In another article by you I read something about "a 3 line break point" but I can't find it on your site. The article said that it was just as profitable as the trade triangles but had less in and out trading over a given time period (less broker fees). Can you direct me to the 3 line break point information?
What happened to the news of GS quant trading stopped by NYSE? What about the computer that was stolen from GS a couple weeks ago to help break the story? Does one not think GS might have committed a fupa?
Goldman Sachs' profits had nothing to do with their trading ability. Their traders aren't any better than anybody elses. What their profits came from are the huge amount of Credit Default Swaps they bought from AIG, CDS's which would never had been honored due to AIG bankruptcy but which your and my tax dollars payed off.
If you want to make money like Goldan Sachs you spend lots of money buying political candidates, have them pass policies favorable to you and appoint your lackeys to the positions that regulate your industry. Then you tell your lackeys to use any excuse possible to take down your competition, construct barriers to entry for your industry and steal money from taxpayers to directly hand to your company.
Call it "democracy" and call people anti-semitic if they challenge what is going on. It works like a charm. Americans are suckers and will never do anything about it. Goldman is not silly enought o rely on "trade triangles" that MIGHT work 55% of the time...they bet on sure things. Political power to steal from taxpayers and cover losses is a SURE THING!!
Gabe, there is a lot of truth in your comment. Isn't it strange how just after Lehman Brothers (competition to GS) got took out the bailouts began. Timing is everything.
Hey, if I could be right 55% of the time I would be a millionaire!
Hi Adam,
I am not yet a subscriber but trying to learn as much from your site prior to committing my limited funds which I am likely to do to in the near future.
However I do have a question that has popped up in my mind over the past few weeks of watching some of your video's such as the this GS one, and that is, you show potential returns for GS (and others) as if we had bought on a monthly triangle whereas if I read the video correctly, the weekly triangle didn't appear until the 145'ish range (vid didn't actually have all the weekly triangles).
So I am confused as the so called "if on a deserted island" why you are timing your theoretical buys on the Monthly signal and not the weekly. If supporting news was attractive then yes, I would likely buy/sell on a trend change, but you were highlighting that Trade Triangles can be used being ignorant of news, and therefore if we followed the "Monthly for Trend, Weekly for Timing" philosophy, then your video doesn't follow your own advice and we certainly wouldn't have made a 50% odd return as stated in the video!
I'm looking forward to joining up regardless, as the trade triangles takes much of the time consuming work away and appears to allow more time for hunting down more winners.
All the best from NZ
Dean
Dean,
Thank you so much for your feedback I'm very partial to NZ. my wife and I were just in your beautiful country in April the this year. In fact, I will be visiting New Zealand for my daughter's wedding in a Hawks Bay in January 2010.
Basically the monthly trade triangles are for the big trends. When a monthly trade triangle takes place that is in the opposite direction from the previous monthly trade triangle that is considered to be valid signal to begin with. You would then use the weekly trade triangles as a stop. Should you be stopped out and if the original monthly trade triangle trend is still valid you would simply reenter a position in the direction of the weekly trade triangle.
I hope this clears up any confusion that you might have. The system is remarkably simple and remarkably effective.
All the best,
Adam
P.S My daughter for your information is marrying a New Zealander.
Great - yes thats the clarification I was after. Thanks.
Per some other comments re GS, I think thats one entity I would ignore all but the strongest trend changes and just back the politics. Even from down-under, just sit here in wonder about these folks!
Yes, in some respects we have it lucky down here, but do tend to take it for granted! January for a wedding (and weather typically being conducive to hitting the odd vineyard) in Hawkes Bay should be great. Helped of course by excellent hospitality of us kiwi's 🙂 Enjoy your next trip.
Thanks again Adam.