Let Elliott Waves Signal Market Direction for You

Posted on February 11, 2023 by dayat

If you were a lone bull in a herd of stampeding buffalo, your survival instincts would tell you to follow the herd, regardless of its direction. The same is true for the successful trader or investor maneuvering within the financial herd called the Stock Market. As trader psychology changes, so do the Markets.

The Elliott Wave Principle captures the essence of trader psychology. It is an effective, visual representation of traders’ human nature to follow ‘in a crowded path’ extreme optimism followed by extreme pessimism, and then repeat the process again and again. The Elliott Wave patterns capture the continuous unfolding of the extremes depicted as Stock Market sentiment.

Traders cannot rely on news and events to drive the Stock Market. History has shown that news and events related to the Market have no consistent effect on its direction because of the influence of unfolding Market sentiment. For instance, Market reaction to the same news can be extremely positive at one given time, but then extremely negative at another given time.

Elliott Wave patterns display to the trader the most likely future Market direction based on current pattern structure. By understanding Elliott Wave pattern characteristics, a trader can identify higher probable outcomes from lower probable outcomes thereby reducing investment risk.

The classic Elliott Wave patterns consist of impulsive and corrective waves. An impulsive wave moves in the same direction as the current trend and is made of five sub-waves. A corrective wave moves against the current trend and is made of three sub-waves.

The formation of sub-waves can be extremely varied. However, general tendencies to note for trading purposes are as follows:

The first sub-wave in either an impulsive or corrective wave can be difficult for a trader to accept because it is the fist wave to run counter to currently prevailing direction;
The second sub-wave in either an impulsive or corrective wave may pose an opportunity for the trader to respond if he/she missed the first sub-wave as it represents a partial retracement of the first sub-wave;
The third sub-wave of an impulsive wave can be the most predictable and strongest of the sub-waves as momentum has been established;
The fourth sub-wave of an impulsive wave may demonstrate more volatility in its retracement than the second sub-wave; and
The fifth sub-wave of an impulsive wave and the third sub-wave of a corrective wave may be less predictable and more volatile than the other sub-waves because they are determining the end to the larger wave.
In addition, traders can increase their probability of success by placing entry and exit points near levels favoring a change in Market direction. For example, placing an entry for a long position near the start of an upward impulsive wave has a higher degree of being successful than placing an entry for a long position near the end of an upward impulsive wave.

Forecasting Market direction from Elliott Wave patterns does not provide certainty, but rather a probability of Market direction. There can be more than one valid interpretation of wave patterns, each carrying a probability of being an accurate portrayal of Market direction.

Traders should keep in mind that it is typical for Elliott Wave patterns to be continually reassessed and altered as Market sentiment unfolds to provide a higher probability of Market forecast. Alteration of wave patterns should be viewed not as a weakness, but as a strength. To be sure, the Market is quite dynamic; therefore, any tool used to help forecast the Market must be dynamic, too.

It is important to note the principals and use of Elliott Waves have persevered for over 70 years, when in 1938, in collaboration with C. J. Collins, R.N. Elliott introduced ‘Elliott Wave Principals’. Mr. Elliott believed that while stock market prices may appear random and unpredictable, they actually follow predictable, natural laws that can be measured and forecast by implementing wave patterns based on Fibonacci number analysis, also pioneered by Mr. Elliott.

Mr. Elliott theorized that common waves are characterized by Fibonacci proportions of 38%, 50%, and 62%. Impulsive waves relate to one another in Fibonacci proportions and corrective waves tend to retrace in Fibonacci proportions.

Mr. Elliott, encouraged so greatly by the response to his theory in the investment world, expanded it to apply to all collective human behaviors. His final and most comprehensive work titled ‘Nature’s Law-The Secret of the U

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Is Marketing Direct Sales Different From Multi-Level Marketing?

Posted on January 11, 2023 by dayat

Some years ago, I partnered with my first multi-level marketing company or MLM, not knowing exactly what a MLM company was. I thought I was just selling makeup and getting others to join me. Once I got into the industry, my eyes opened up to the conglomerate of marketing direct sales companies and all the various types of direct sales companies. There is multi-level marketing, network marketing, affiliate marketing, internet marketing and whatever other phrase that is hot for the new year. In either case, I was confused. I am always coming across people who don’t understand the difference between the different types of companies so I figured I will break it down simply for you all. In today’s blog I will focus on multi-level marketing.

Marketing Direct Sales: Direct Sales is an industry in which companies sell their products or services directly to consumers through a distributorship.

Basically, think of the term “direct sales” as the broad category for multi-level marketing and affiliate marketing. Marketing direct sales also goes beyond these two types of companies. There are also single-level companies that typically include industries such as real-estate and financial services. Single-level in which distributors are just compensated for the work that they do.

Marketing Direct Sales: Multi-Level Marketing

Multi-Level Marketing (MLM) is an industry in which individuals or an individual entity, called distributors, sell a company’s products or services through a down-line of distributors.

In MLMs, individuals are able to purchase the right to sell a specific company’s products or services and are able to earn a commission on the items she or he sells. What makes multi-level marketing so attractive is that not only do you earn a commission on the products/services you sell, but you also earn a commission on sales when people join the business under you.

In product based companies, like Mary Kay, Amway, Organo Gold, etc., distributors are able to buy products at wholesale and sell them at retail, which is usually a 50% markup on the wholesale price.

In service based companies, like Legal Shield, ACN, etc. distributors are required to utilize the service to maintain their distributorship.

Additionally, as distributors bring more people into the company and sell more products they are able to achieve certain rankings.

MLMs are based around rankings that incentivize people to produce more. As you move up the ranks, you are able to earn higher commissions and earn additional bonuses.

Marketing Direct Sales: The Downside of Multi-Level Marketing

The multi-Level marketing industry is often associated with a lot of negativity. Typically, when you hear the words network marketing or MLM, you will hear the following: SCAM! Before there were concrete regulations in place, there were people marketing direct sales illegally. There were many fly-by-night companies that came on the scene that were doing illegal activities such as Ponzi schemes. The issue here is that the majority of commissions were made off of bringing people into the business instead of selling products or services.

However, the Fed shut down many of these companies years ago. However, be mindful there are still a few illegal companies lingering out there.

Marketing Direct Sales: Conclusion

Overall, this is a viable industry that allows anyone to make a solid living and for the real go-getters an opportunity to create wealth. Deciding to partake in this industry depends on what you are looking for. Fortunately, there are a variety of companies for everyone. Whether you like to do home parties selling makeup, jewelry, I’ve even seen bread! There are also online businesses.

I suggest that you give marketing direct sales a try. If you are looking for a specific opportunity, I have a few options that I can suggest for you. I have participated in network marketing, affiliate marketing and online marketing so I have some experience to share.

Comment below and share!

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