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Anatomy of a Great Trade

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DEC 01, 2023       SCOTT WELSH’S ANATOMY OF A GREAT TRADE Anatomy of a Great Trade: SMH When we think of huge winning trades, we usually think of high-flying small companies. And that’s true a lot of the time. The problem with that, though, is: how do we identify a small company that soars to the moon? Not every small company becomes Apple. Many do not. So choosing a small-cap, unknown stock and riding it to the top can be difficult. But there’s a way around that. We can just use an ETF.  ETFs combine many companies into one, which means we don’t have to choose. We can choose the idea, or the sector, and then just let all the companies in that sector work for us. But will an ETF actually produce a huge move? Yes. Take, SMH, for example. SMH is the semiconductor ETF and it holds big names like NVDA, AMD, and QCOM. And if we wait for two consecutive closes above a 12-month simple moving average, we can possibly catch a big run.   In July 2020, we got our trigger after two straight closes above the moving average. And then SMH ran from $70 up to $133 (after we exited on the first close below the moving average). Further, we could have entered on the signal back in April 2023–and we’d be sitting pretty right now. Don’t underestimate ETFs. They can produce great trades, too. Happy trading, Scott P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45. Additionally, the teal lines on the chart show the profitable runs. PROSPERITY PUB MARKET TALK The Rise Of Inherited Billions The times they are a-changing in the land of billionaires, and not in the way you might think. Gone are the days when the richest folks on the block were self-made entrepreneurs. Now, it's the heirs and heiresses who are stealing the spotlight. According to UBS, more wealth is being passed down than created. And we're talking big numbers here. According to a UBS report, in just one year, 53 lucky heirs inherited a whopping $150.8 billion, while 84 self-made billionaires brought in a mere $140.7 billion. It seems that inheriting wealth is now outpacing creating it. It's like the universe's way of saying, "Why bother hustling when you can just wait for the will to be read?" And this isn't just a one-off. UBS projects that in the next 20-30 years, over a thousand billionaires will pass down $5.2 trillion to their offspring. Let's not forget the backdrop here: a world grappling with high interest rates, a tricky IPO market, and geopolitical chess games. It's no wonder creating wealth is tougher than inheriting it. This shift raises some big questions about wealth distribution and what it means to be 'rich' in today's world. Are we moving towards an era where the most significant financial decisions are made not by self-made magnates but by their heirs? Only time will tell, but one thing's for sure — the billionaire club is getting a makeover, and it's more of a family affair than ever. — The Prosperity Pub Team ___________________________________________________

DEC 01, 2023 SCOTT WELSH’S ANATOMY OF A GREAT TRADE Anatomy of a Great Trade: SMH When we think of huge winning trades, we usually think of high-flying small companies.   And that’s true a lot of the time.   The problem with that, though, is: how do we identify a small company that soars to the moon?   Not every small company becomes Apple. Many do not.   So choosing a small-cap, unknown stock and riding it to the top can be difficult.   But there’s a way around that.   We can just use an ETF.    ETFs combine many companies into one, which means we don’t have to choose.   We can choose the idea, or the sector, and then just let all the companies in that sector work for us.   But will an ETF actually produce a huge move?   Yes.   Take, SMH, for example.   SMH is the semiconductor ETF and it holds big names like NVDA, AMD, and QCOM.   And if we wait for two consecutive closes above a 12-month simple moving average, we can possibly catch a big run.   In July 2020, we got our trigger after two straight closes above the moving average.   And then SMH ran from $70 up to $133 (after we exited on the first close below the moving average).   Further, we could have entered on the signal back in April 2023–and we’d be sitting pretty right now.   Don’t underestimate ETFs.   They can produce great trades, too.   Happy trading,   Scott   P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.   Additionally, the teal lines on the chart show the profitable runs. PROSPERITY PUB MARKET TALK The Rise Of Inherited Billions The times they are a-changing in the land of billionaires, and not in the way you might think. Gone are the days when the richest folks on the block were self-made entrepreneurs.   Now, it's the heirs and heiresses who are stealing the spotlight. According to UBS, more wealth is being passed down than created. And we're talking big numbers here.   According to a UBS report, in just one year, 53 lucky heirs inherited a whopping $150.8 billion, while 84 self-made billionaires brought in a mere $140.7 billion. It seems that inheriting wealth is now outpacing creating it. It's like the universe's way of saying, "Why bother hustling when you can just wait for the will to be read?"   And this isn't just a one-off. UBS projects that in the next 20-30 years, over a thousand billionaires will pass down $5.2 trillion to their offspring.   Let's not forget the backdrop here: a world grappling with high interest rates, a tricky IPO market, and geopolitical chess games. It's no wonder creating wealth is tougher than inheriting it.   This shift raises some big questions about wealth distribution and what it means to be 'rich' in today's world. Are we moving towards an era where the most significant financial decisions are made not by self-made magnates but by their heirs?   Only time will tell, but one thing's for sure — the billionaire club is getting a makeover, and it's more of a family affair than ever.   — The Prosperity Pub Team ___________________________________________________

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to diansastroxz.forex@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions.   Unsubscribe This email was sent to diansastroxz.forex@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub