I'll Show You How to Trade Market Cycles

Feb 28, 2020

Apurva Sheth, Editor,Profit Hunter Pro

Markets move in cycles. The best way to make big profits is to catch these cycles early and ride them all the way.

This is easier said than done... but it is possible.

And I'll show you how!

In a series of videos, I will tell you how you to trade market cycles like professional traders.

In today's video, I'll talk to you about the basics. Why do markets move in cycles in the first place?

Let's find out...

Hi, I'm Apurva Sheth and I welcome you all to this latest edition of Fast Profits Daily.

Indian stock markets are falling over the last couple of weeks. The Nifty is down more than 500 points in the last four trading sessions.

Now all this is mainly because of the spread of Coronavirus. Investors all across the globe are worried because of the spread of Coronavirus, which is leading them to book profits from riskier assets like emerging markets and commodities, to safer havens like gold or bonds. Hence, we're seeing a rally gold and bonds as well.

Although the investors maybe panicking because of the constant fall in the benchmark indices, as well as the broader market stocks, however, I feel that there could be a possibility of a bounce back at current levels.

The Nifty had hit a low of 10,670 in September 2019 and from there it went on to hit a high of 12,430 in January. Now the index has fallen almost 50% of this entire up move. It has given back 50% of the gains that it made during the last 4 to 5 months.

Now we have seen in the past that 50% retracement levels act as a very good support for markets as well as stocks.

So I believe that there could be chances of a pullback around these levels. However, we'll have to wait and watch whether the markets react to this support level, whether they hold here or not.

But one should wait and watch and see if the market reacts positively in the next few sessions. So that's all on the markets.

Now, I would like to talk about something very important. I'd like to talk about a cycle which governs not only the entire universe but also the markets. Now what cycle am I talking about?

I am sure that you must have heard about the Holy Trinity, which is the Brahma, Vishnu, and Mahesh. Now, these are gods but they also performed very unique tasks in this entire cosmos.

So Brahma is said to be the creator. He is the creator of the universe. Vishnu is the preserver. He preserves the entire universe whereas Shiva is considered as the destroyer or regenerator.

Now for Brahma to create, he needs knowledge and this knowledge is personified in the form of Saraswati.

Now for Vishnu to preserve and to nourish his public, he needs wealth which is personified in the form of Goddess Lakshmi.

Whereas for Shiva to destroy, he needs power, which is personified in the form of Parvati.

So all the three gods have these unique powers which enables them to perform the unique task that they are assigned. Now this is the entire cycle creation, preservation, and destruction. The universe goes through these cycles several on several occasions.

Not only the universe but the market also goes through such similar cycles and not only the markets, there are similar cycles present in nature as well as in our lives. Now, how do these cycles go through in the markets?

Now, markets also move through three phases. First is the calm or sideways phase wherein the bull markets are created. Now bull markets are created on the knowledge of the future. The future in terms of how the economy will perform over the next few months and years. So the people with this knowledge act early and buy stocks, which leads which leads to the creation of a bull market.

Once the bull market is ready and everyone starts participating in it, there is a rally, which means the earlier entrants into the bull market will take an exit and fresh money which is coming into the markets will nourish the bull market further.

So first is the creation of a bull market. Second is preservation or nourishment of the bull market, which happens on the fresh money which is coming in, which is where the Lakshmi or the power of wealth is required, and finally, when there is no one left to participate in this bull market, the slow process of degeneration occurs, and finally, bears come in and power down the bulls, and lead to the destruction of the bull market. So you need power to destroy a bull market.

So this is how the market goes through these three phases and people use these three skills to take the markets through various phases.

So this is one big cycle which the market goes through. However, there are multiple cycles present in the market which it goes through, and the people with the knowledge of this cycles can empower themselves to make tremendous amount of wealth over the next few months and years to come.

So you don't have to go anywhere or the next few weeks. I will take you through these various cycles and also show you ways in which you could make tremendous amount of wealth.

So that's all from me for today. I hope you enjoyed watching this video and in case you did, please like it, share it, and even subscribe to our channel.

You can also send in your comments, send your feedback, and reviews at the bottom of this video.

I'll be happy to hear from you. So that's all from me for today. Thanks a lot and have a nice day.

Thank you.

I hope you enjoyed this video. I'll be back with more videos about making fast profits using market cycles.

Stay tuned...

Warm regards,

Apurva Sheth
Apurva Sheth
Analyst, Fast Profits Report
Equitymaster Agora Research Private Limited (Research Analyst)

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2 Responses to "I'll Show You How to Trade Market Cycles"

Jusab ali rathore

Mar 2, 2020

i am looking

Like 

KARL LOBO

Feb 28, 2020

Excellent video Apurva. Presented so well and logically. Look fwd to more such cyclical inputs..

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Equitymaster requests your view! Post a comment on "I'll Show You How to Trade Market Cycles". Click here!