The Wolf Den #60 - Trades, Chart Requests, A Ton Of Tips And More
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This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Make sure to use code SCOTT25 after you download the Voyager App to get $25 in free Bitcoin. In the last issue I said that "the only people who benefit from the rise in the stock market are the top few percent, who are being bailed out by a system that prioritizes socialism for the rich."A subscriber pointed out that people with 401Ks, pensions and other investments who are not in the top few percent also benefit.Perhaps I should have said "almost the only people," but I will explain my thinking.I have ALWAYS said that people should invest early and often with any money that they can afford to not touch. This is the path to wealth since the beginning of markets. I am not a financial advisor, but if I was talking to my younger self and I was 21 right now, I would still put my money into an IRA and not touch it because of the tax benefits. But I would open a self-directed IRA with less limitations, like the one I mentioned Tuesday - CHOICE IRA from KINGDOM TRUST. (The link Tuesday was broken, sorry about that!) I would not put my money solely into the stock market - I would diversify a bit more than conventional wisdom has suggested in the past. At that age, I would invest more heavily in riskier assets like Bitcoin, because you can afford to be wrong. As a 40 year old with plenty of investments, I am in the fortunate position to allocate more of my wealth to investments that allow me to partially "opt out" of the system. But that will always remain partial. No matter what your beliefs, you still have to play the game to some degree, which means exposure to the stock market.Further, things are VERY different now. Pensions are likely to be a major root cause in a financial collapse it if happens. They are tragically underfunded and the issue is compounding. Forbes wrote about this a few weeks ago:https://www.forbes.com/sites/johnmauldin/2019/05/20/the-coming-pension-crisis-is-so-big-that-its-a-problem-for-everyone/#5327f7d237fcCounting on your pension to payout at this point in time is seemingly as much a lottery ticket as a sure thing. A rise in the stock market will not solve this for people with pensions. Read the article above.And a 401K? You are lucky if you have one from a previous job, because there are signs that they will not be offered in the future to new hires. More bad news for Millennials. When I graduated college, not only did companies give you a 401K, they matched dollar for dollar everything that you put away. Companies are already halting retirement matching during this crisis, with more likely to do so. Further, most people manage their 401Ks poorly, lack the financial skills to maximize the gains and end up underperforming the market significantly. Many people have minimal stock exposure within their 401K, opting for CDs, bonds and other assets as well. Those have done poorly with nearly 0 interest rates.Trump said this in February to Congress:“All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90 and 100 percent and even more."From Reuters - "While pensions and retirement funds were lifted by the rise in stock markets, the president has avoided talking about one key point about who really benefits when the market rallies: Most of the gains go to the small portion of Americans who are already rich."That’s because 84% of stocks owned by U.S. households are held by the wealthiest 10% of Americans, according to an analysis of 2016 Federal Reserve data by Edward Wolff, an economics professor at New York University. So when the stock market has a blockbuster year - such as the nearly 30% rise in the S&P 500 benchmark index in 2019 - the payoff primarily goes to people who are already rich.“For most Americans, a stock price increase is pretty immaterial to their well-being,” said Wolff, who published a paper about wealth inequality in the National Bureau of Economic Research in 2017.And this was BEFORE a global economic crisis.Over 40M Americans do not have jobs. Many have pensions and 401Ks which are of no use to them while they have no salary. The average person is struggling - most of those jobs were lost by people making the least. The stock market rising may help their retirement slightly, but it's not helping them when they need it.I stand by my assertion that a significant rise in the stock market disproportionally helps the top few percent. A bad economy with a good stock market is meaningless to the average person. If we are talking about a stock market rise in an economy that is humming along and doing well, the conversation is different. That's not the case now, and will not be the case in the foreseeable future.*** I have shorted SPY today, you can see the trade in the chart requests.To be fully transparent, my podcast is now sponsored by Kingdom Trust, who I mentioned on Tuesday and today. This happened BECAUSE I contacted them about opening an IRA, and I receive nothing from sharing their link or referring people to them. I would never share anything that I do not use myself. They do not sponsor the newsletter and I have no obligation to discuss them here. I just think the company is awesome. A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-crypto-newsletter-issue-10-219754 and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!What’s In This Issue:BitcoinBest 50 Days In Stock Market HistoryControl Your EmotionsA Few Altcoin Trading TipsAltcoinsThe Wolf Of All Streets Podcast Ft. Simon DixonGreat Advice From Mark YuskoBloomberg Finally Catches Up - China Going DigitalChart Requests
The Wolf Den #60 - Trades, Chart Requests, A Ton Of Tips And More
The Wolf Den #60 - Trades, Chart Requests, A…
The Wolf Den #60 - Trades, Chart Requests, A Ton Of Tips And More
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Make sure to use code SCOTT25 after you download the Voyager App to get $25 in free Bitcoin. In the last issue I said that "the only people who benefit from the rise in the stock market are the top few percent, who are being bailed out by a system that prioritizes socialism for the rich."A subscriber pointed out that people with 401Ks, pensions and other investments who are not in the top few percent also benefit.Perhaps I should have said "almost the only people," but I will explain my thinking.I have ALWAYS said that people should invest early and often with any money that they can afford to not touch. This is the path to wealth since the beginning of markets. I am not a financial advisor, but if I was talking to my younger self and I was 21 right now, I would still put my money into an IRA and not touch it because of the tax benefits. But I would open a self-directed IRA with less limitations, like the one I mentioned Tuesday - CHOICE IRA from KINGDOM TRUST. (The link Tuesday was broken, sorry about that!) I would not put my money solely into the stock market - I would diversify a bit more than conventional wisdom has suggested in the past. At that age, I would invest more heavily in riskier assets like Bitcoin, because you can afford to be wrong. As a 40 year old with plenty of investments, I am in the fortunate position to allocate more of my wealth to investments that allow me to partially "opt out" of the system. But that will always remain partial. No matter what your beliefs, you still have to play the game to some degree, which means exposure to the stock market.Further, things are VERY different now. Pensions are likely to be a major root cause in a financial collapse it if happens. They are tragically underfunded and the issue is compounding. Forbes wrote about this a few weeks ago:https://www.forbes.com/sites/johnmauldin/2019/05/20/the-coming-pension-crisis-is-so-big-that-its-a-problem-for-everyone/#5327f7d237fcCounting on your pension to payout at this point in time is seemingly as much a lottery ticket as a sure thing. A rise in the stock market will not solve this for people with pensions. Read the article above.And a 401K? You are lucky if you have one from a previous job, because there are signs that they will not be offered in the future to new hires. More bad news for Millennials. When I graduated college, not only did companies give you a 401K, they matched dollar for dollar everything that you put away. Companies are already halting retirement matching during this crisis, with more likely to do so. Further, most people manage their 401Ks poorly, lack the financial skills to maximize the gains and end up underperforming the market significantly. Many people have minimal stock exposure within their 401K, opting for CDs, bonds and other assets as well. Those have done poorly with nearly 0 interest rates.Trump said this in February to Congress:“All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90 and 100 percent and even more."From Reuters - "While pensions and retirement funds were lifted by the rise in stock markets, the president has avoided talking about one key point about who really benefits when the market rallies: Most of the gains go to the small portion of Americans who are already rich."That’s because 84% of stocks owned by U.S. households are held by the wealthiest 10% of Americans, according to an analysis of 2016 Federal Reserve data by Edward Wolff, an economics professor at New York University. So when the stock market has a blockbuster year - such as the nearly 30% rise in the S&P 500 benchmark index in 2019 - the payoff primarily goes to people who are already rich.“For most Americans, a stock price increase is pretty immaterial to their well-being,” said Wolff, who published a paper about wealth inequality in the National Bureau of Economic Research in 2017.And this was BEFORE a global economic crisis.Over 40M Americans do not have jobs. Many have pensions and 401Ks which are of no use to them while they have no salary. The average person is struggling - most of those jobs were lost by people making the least. The stock market rising may help their retirement slightly, but it's not helping them when they need it.I stand by my assertion that a significant rise in the stock market disproportionally helps the top few percent. A bad economy with a good stock market is meaningless to the average person. If we are talking about a stock market rise in an economy that is humming along and doing well, the conversation is different. That's not the case now, and will not be the case in the foreseeable future.*** I have shorted SPY today, you can see the trade in the chart requests.To be fully transparent, my podcast is now sponsored by Kingdom Trust, who I mentioned on Tuesday and today. This happened BECAUSE I contacted them about opening an IRA, and I receive nothing from sharing their link or referring people to them. I would never share anything that I do not use myself. They do not sponsor the newsletter and I have no obligation to discuss them here. I just think the company is awesome. A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-crypto-newsletter-issue-10-219754 and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!What’s In This Issue:BitcoinBest 50 Days In Stock Market HistoryControl Your EmotionsA Few Altcoin Trading TipsAltcoinsThe Wolf Of All Streets Podcast Ft. Simon DixonGreat Advice From Mark YuskoBloomberg Finally Catches Up - China Going DigitalChart Requests