Chris Vermeulen: Lots of Upside Ahead for the Metals and Miners
Chris became interested in the stock market while participating in a trading competition in high school. This sparked his attention, and he began studying the markets and futures. When he turned eighteen near the top of the tech bubble, he opened his first trading account. His first trade was a big winner, but shortly afterward, the bubble burst, and he lost a fair bit of money.
Chris likes technical analysis because it suits his trading style. He follows the price and only concerns himself with the chart. He considers almost everything else to be background noise. Chris is a big believer in Stan Weinstein’s “Stage Analysis,” which is a strategy for determining where a given stock is at in the market cycle.
He cautions that investors should expect a broad sell-off when stocks head into the next bear market downturn. This liquidation will pull everything down, including gold for a time, and afterward, there will likely be a massive rally in the juniors.
Chris feels that “Trading experience is worth its weight in gold.” Investors need to have the proper position sizes that match their risk tolerance. Most investors put too much into a given trade, and they need to follow a trading strategy that suits their personality.
Chris discusses the primary indicators that he relies on, like moving averages, which help in finding market bottoms. Also, he looks for support levels being broken, and he utilizes Fibonacci extensions, which helps him with determining price targets.
He cautions that too much analysis can be detrimental to your trading. Avoid listening too much to the news and experts and focus instead on what the charts are doing.
Time Stamp References:
0:40 – Chris’s early career.
3:25 – What led him to technical analysis.
5:30 – Stage Analysis and market trends.
8:15 – Why investors need a strategy.
13:40 – Indicators for market timing.
17:20 – Avoid too much information.
Talking Points From This Week’s Episode
• Chris’s background and interest in trading.
• His Technical and Stage Analysis tips.
• Favorite indicators and market strategies.
Chris Vermeulen is CEO & Founder of Technical Traders Ltd. Chris has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and author.
Years of research, trading, and helping individual traders around the world has taught him that many traders have great trading ideas, but they lack one thing. They struggle to execute trades systematically for consistent results. Chris helps educate traders, and his mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.
He has also been on the cover of AmalgaTrader Magazine and featured in Futures Magazine, Gold-Eagle, Safe Haven, The Street, Kitco, Financial Sense, Dick Davis Investment Digest, and dozens of other financial websites.