Transcription:

Hey, Dan Murphy here and with the holiday season coming up here what in the world do you get the person that has everything. It’s just impossible to shop for a lot of people. I know myself, I'm impossible to shop for so I think I've found it, and that is civet coffee. I don’t think if you've ever seen the movie with Jack Nicholson, what was that called; I have to refresh my memory here. It was Bucket List, that’s what I'm trying to think of, and in Bucket List they mentioned the civet coffee, and if you don’t know what it is, it’s this little rascal right here.

Eats a bunch of really ripe, really good coffee beans. The crème of the crop. I almost gave it away. The crème of the crap is right because this thing takes a poo. I don’t know if it wears diapers or something I'm not really up on this whole civet coffee thing but it does its business and I guess they do something with it. If it’s diapers or if dome guy is following the darn thing with dust buster or something and then they turn it into coffee. What an amazing product that is.

People will buy anything, don’t you just know that. Let’s check out the prices of this. What are we looking at? $320 a pound, amazing stuff. I might just have to try some of this stuff but more than likely I'm not a huge coffee fan anyway. I'm not so certain I would get anything like this but some people swear by it and what does that have to do with trading. Not a damn thing. Let’s get to trading here and I'm just having fun with you.

What I wanted to say was that unless you’ve been under a rock for the past week then maybe you didn’t know that the smart money indicator had flipped to a short signal. I've been sending out lots of emails about it and I hope you got it. If not then put my address in your; white list the damn thing so it doesn’t get mistaken as spam. I hate spam just as much as everyone but some of these internet providers filter out a lot of good emails. AOL is very notorious for that, just wanted to point that out.

Do you remember having AOL back in the day? Yeah me too. Looking at what happened; it’s gone straight down since I announced that. I'm not usually that lucky. This is just luck because here's the deal with the smart money indictor. It’s a long term timing model, these things can last months. This one was 13 months in the making. What it’s meant to do is catch the really big moves. It’s not meant to catch bottoms and tops.

Clearly it didn't catch the bottom or the top in 2009 but in 2008, look at that move. Look at that move. It’s not going to catch all the squiggles in here that’s what I have other trading models for those. Amazing moves here. This thing doesn't even use price it just looks behind the scenes. You’ve heard me talk about at Nordium and so. So let’s just go ahead and look at some questions that people had of me and we’ll start with this: Can I trade the NASDAQ 100 on these signals? Can I trade gold on the smart money signals? What happens to gold, gold has been thrown around a little bit more especially now that I have a gold trading product I think that you guys are more educated about it, at least I hope you are and I'm not here to pitch that but let’s just go ahead and answer those questions real quick, and the best way I know how to do that is show you the equity curve here.

I only use tested analysis, these are the exact rules that are programmed into the computer. So I don’t introduce my own bias into doing the research. That's what I'm all about. Let’s go ahead and take a look at some other markets. So we’ll start with gold, not looking to smooth. The simple reason why is because gold and stocks are not correlated. They’ll become correlated and a lot of different instruments will become correlated and then they’ll become uncorrelated, that’s just the nature of the beast.

Let’s look at oil, that’s another commodity here. How’s that performed? Horrible. Obviously, these things are very uncorrelated. We’ll look at the NASDAQ 100 and the NDX. Very much correlated but not as good as trading in the S&P 500 and that’s where you're going to find, if you go sector to sector, let’s check out the retail sector and again, it’s going to be more choppy than trading in the S&P 500.

The bottom line and what I want you to get from this and I’ll do one more and that is, let’s look and see how bonds have traded. I'm going to use the interest rates because when interest rates go up bonds go down. When bonds go down interest rates go up. The S&P 500 generates a short signal as it is. Here, you would seemly want to buy bonds. Here is what that looks like; not too good either. I would say stick with what that trading method is made for and that is the S&P 500 and that’s exactly what I want you to take away from today’s video lesson.

Now, the next question I want to answer and someone was so kind to ask this question. How much money do I put into this trading method? How much money goes into the smart money indicator? Well first of all I have to say that it is illegal in the United States for me to give personal advice but I can give general advice, so let’s go ahead and do that real quick and the simple answer is 15%. Let me show you that graphic.

Let me show you a pie chart. Every time I think of a pie chart I think Ross Perot for some weird reason. That’s been a while ago. Was that 1990 or something? Okay, so, here we've got the Million Dollar Target Portfolio and what I'm doing in these free videos and the smart money indicator is I'm giving you 15% of the whole equation. That's what I recommended people in general use in their portfolio. You can use 15% and put it into SPY if you wish.

Again disclaimer, I cannot give personal advice, this is all general advice and please never ask me that either because I hate saying no to people like that but it is necessary. I'm giving you, basically, 15% of the whole evil scheme I’ll call it. So the evil scheme to make money. For some reason lately it’s been evil to make money. Forget that man. If anyone tells you, especially family, just ignore them. That's all I can say about that.

People will purposely sabotage you once, in their eyes, you become too successful. Forget about that stuff. You need to blaze your own trail don’t listen to them. But, if 15% is allocated towards the smart money indicator that of course leave 85% and so that’s where a couple of my different trading methods for swing trading come in and play over here. So you can; I have two different trading models that I am really into here for trading in the S&P 500 and it closed and of course there are those day trading opportunities.

So here you want to leave a little powder dry for that and there are other trading models for silver and for gold and the reason why there’s a smaller slice for silver is because the thing is so volatile. You don’t want to be putting a whole lot of money into something as volatile. If you remember what I've been saying about money management: 95% of people lose money and if you want to go ahead and be successful and you didn’t have a role model or a mentor or something in the stock market what you can do is just look at what 95% of people are doing and then just do the opposite.

Most people, the 95% that lose, they don't look at volatility. They’re either all in or all out. That has no semblance of any money management and people ask me if I'm going to write a book on this subject. Maybe I will, I've been thinking about it. It’s either that or start selling coffee shit, so I think I’d much rather do some more productive than that and money management to me is number one on the agenda, and here is the reason why.

You can have the best trading system in the entire world and if you risk too much money on it you could just go belly up. That stuff does happen. I've seen people that use awesome trading methods and they either screw up by not taking the trades or they screw up by not using proper money management and so what I usually see is most people trading with way too much leverage and this evil scheme over here, the little pie chart, Ross Perot style, keeps people out of a lot of trouble.

Now, again this is the holiday season and so I'm going to be doing some travelling. I’m going to go back home and see the family and maybe actually cut the ol’ turkey and help around the house a bit more. Old pops he fell off a ladder and busted himself up pretty good. He’s got a broken arm and broken ribs. I'm going to leave early and start helping out over there so this is going to be the last video for this week so I just want you to think about money management and also that when you come to the smart money indicator it’s best left for trading in the S&P 500 and what I'm going to leave you with and it’s not going to be coffee, don’t worry about that. I'm not going to be talking about that again for a while, maybe I should. It’s interesting stuff. I am curious about actually trying some of that stuff.

I'm going to be opening membership, I believe next week. That’s the first time I've opened good ol’ membership in a long time and what I'm going to do is redirect this page to the sign up form. I'm not really certain if I'm going to be able to or not, just depending on my whole schedule but that would go ahead and coincide with; I actually have some time on my hands starting next week so the thing is I'm going to make it pretty hard on anyone that is new to sign up, I just wanted you to know that ahead of time.

I'm looking to do business only with people that already have money because I don’t want to deal with people looking to get rich quick or any of that stuff. Just forewarn you, if you're really new to this stuff and you don’t have any money we’re probably not going to be doing business. You can watch these videos and hopefully I’ll be able to really help you out in your trading and maybe the smart money indicator will help you enough to where you do get a good sized nest egg and then you can do business with me some time in the future. But, I’ll just go ahead and redirect you over. Thanks for listening and happy holidays.