ABOUT MIDAS TOUCH
Welcome to the official website of Midas Touch Consulting.
Our mission is to help investor and traders to become more profitable & wealthy.
We do offer investment consulting for institutional & private investors and traders via our market reports and our unique Midas Touch Gold Model. While our main focus currently is on the precious metals sector and on the exciting cryptocurrencies we do track all markets worldwide and are always in search of excellence and therefore lucrative ideas & opportunities.
We approach the markets from an objective rational and risk averse point of view and do avoid any bias towards long or short. We believe that investors & traders do need to focus on their mental state to process any form of investment in the best possible way. Sign up for our newsletter to receive in depth market analysis and profitable investment ideas.
THE MIDAS TOUCH TEAM
Dipl. Ing. Florian Grummes
Florian Grummes is an independent analyst, investor, trader and consultant who has been active in the financial markets since 1995. Being an individual and contrarian thinker he turned bullish on Gold & Silver in 2002 and began focusing on this neglected sector. He spent years improving his technical anlaysis skills and attended numerous workshops shaping his trading & psychological skills. Due to the cyprus crisis in early 2013 Bitcoin and cryptocurrencies came on his radar and have never left since.
In 2008 he started sending out his research about the gold market to his friends. Quickly his readership encouraged him to open his research to the public. His outstanding track record and his objective approach consequently brought him worldwide attention and a large international follower base. Since 2011 he is writing a bi-weekly in-depth gold & silver analysis for one of Germany´s largest gold and silver retailer „the pro aurum group“. As well he is publishing his international newsletter which is redistributed to many large financial websites.
In 2015 he started publishing his famous and outstanding „Midas Touch Gold Model“ and has helped lots of followers to protect their capital. Today he is well known for combining technical, fundamental and sentiment analysis into one accurate conclusion about the gold market. As well he has been a very early investor in the cryptocurrencies and brought his readers into Bitcoin below 370 USD, into Ethereum below 8 USD, into IOTA below 0.46 USD and into Steem below 1.00 USD.
Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios.
Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency.
25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture.
Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day.
In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.
BELIEFS & PRINCIPLES
„In the end, truth is always relative but only when one has looked at it from as many different perspectives as possible you have really come closer to her… The freedom to do this is our greatest asset and I am ready to fight for it with my life.“ – Florian Grummes
Successful trading and investing is nearly 100% psychological.
Patience is King. Wait until the trade is coming to you.
Focus on cashflow and value.
You can always improve your risk management system.
Meditation will help you to control your mental state.
Always have a written trading & investment plan.
Always have an exit strategy.
Always define your trading & investment rules.
Honesty & transparency is a requirement, not an option.
You can not give what you don’t have.
There is no security – the only sure thing besides death & taxes is change.
Leverage is a double-edged sword.
Trading & investing is a performance activity.
Emotional, cognitive, and physical factors disrupt access to patterns we have acquired implicitly
The whole purpose of using a trailing stop is to prevent a catastrophic loss. But it doesn’t work without the right position sizing. It sounds simple, but most investors don’t do this properly.
Markets tend to return to the mean over timeWhen stocks go too far in one direction, they come back. Euphoria and pessimismcan cloud people‟s heads. It‟s easy to get caught up in the heat of the moment and lose perspective.
Excesses in one direction will lead to an excess in the opposite direction. Think of the market baseline as attached to a rubber string. Any action too far in one direction not only brings you back to the baseline, but leads to an overshoot in the opposite direction.
There are no new eras – excesses are never permanent. Whatever the latest hot sector is, it eventually overheats, mean reverts, and then overshoots. As the fever builds, a chorus of “this time it‟s different” will be heard, even if those exact words are never used. And of course, it – human nature – is never different.
Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways. Regardless of how hot a sector is, don‟t expect a plateau to work off the excesses. Profits are locked in by selling, and that invariably leads to a significant correction eventually.
The public buys the most at the top and the least at the bottom. That‟s why contrarian-minded investors can make good money if they follow the sentiment indicators and have good timing. Watch Investors Intelligence (measuring the mood of more than 100 investment newsletter writers) and the American Association of Individual Investors Survey.
Fear and greed are stronger than long-term resolve. Investors can be their own worst enemy, particularly when emotions take hold. Gains “make us exuberant; they enhance well-being and promote optimism”, says Santa Clara University finance professor Meir Statman. His studies of investor behavior show that “losses bring sadness, disgust, fear, regret. Fear increases the sense of risk and some react by shunning stocks.”
Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names. This is why breadth and volume are so important. Think of it as strength in numbers. Broad momentum is hard to stop, Farrell observes. Watch for when momentum channels into a small number of stocks.
When all the experts and forecasts agree – something else is going to happen. As Sam Stovall, the S&P investment strategist, puts it: “If everybody‟s optimistic, who is left to buy? If everybody‟s pessimistic, who‟s left to sell?” Going against the herd as Farrell repeatedly suggests can be very profitable, especially for patient buyers who raise cash from frothy markets and reinvest it when sentiment is darkest.
Bull markets are more fun than bear markets. Especially if you are long only or mandated to be fully invested. Those with more flexible charters might squeak out a smile or two here and there.
An attempt at making a quick buck often leads to losing much of that buck. The people who suffer the worst losses are those who over-reach. If the investment sounds too good to be true, it is. The best hot tip I’ve found is “there is no such thing as a hot tip.”
Don’t let a small loss become large. Don’t keep losing money just to “prove you are right. Never throw good money after bad (don’t buy more of a loser). When all you’re left with is hope, get out.
Cut your losers; let your winners ride. Avoid limited-upside, unlimited-downside investments. Don’t fall in love with your investment; it won’t fall in love with you.
A rising tide raises all ships, and vice versa. So assess the tide, not the ships. Fighting the prevailing “trend” is generally a recipe for disaster. Stocks will fall lower than you think and rise higher than you can imagine. In the short run, values don’t matter.
When a stock hits a new high, it’s not time to sell… something is going right. When a stock hits a new low, it’s not time to buy… something is going wrong.
Buy and hold doesn’t ALWAYS work. If stocks don’t seem cheap, stand aside.
Bear markets begin in good times. Bull markets begin in bad times.
If you don’t understand the investment, don’t buy it. Don’t be wooed. Either make an effort to understand it or say “no thanks.” You can’t know everything, so don’t stray far from what you know.
Buy value, and sell hysteria. Paying less than the underlying asset’s value is a proven successful investing strategy. Buying overvalued stocks has proven to underperform the market. Neglected sectors often offer good values. The “popular” sectors are often overvalued.
Investing in what’s popular never ends up making you any money. Avoid popular stocks, fad industries and new ventures. Buy an investment when it has few friends.
When it’s time to act, don’t hesitate. Once you’re in, be patient and don’t be rattled by fluctuations. Stick with your plan . . . but when you make a mistake, don’t hesitate. Learn more from your bad moves than your good ones.
Expert investors care about risk; novice investors shop for returns. If you focus on the risks, the returns will eventually come for you. If you focus on the returns, the risks will eventually come for you.
“Because the world has forgotten the monetary role of gold, our world is in serious trouble. That is the one major reason for the worrisome state of the world. The abandonment of gold as money, of the discipline of gold, is the major reason if not the only reason why our world has become a very dangerous place. In my opinion, it is the biggest tragedy in world history.” – Ferdinand Lips
“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead… my guiding philosophy is playing great defense. If you make a good trade, don’t think it is because you have some uncanny foresight. Always maintain your sense of confidence, but keep it in check.”- Paul Tudor Jones II
“They (traders) would rather lose money than admit they’re wrong… I became a winning trader when I was able to say, “To hell with my ego, making money is more important” – Marty Schwartz
“To invest or speculate successfully, one must form an opinion as to what the next move of importance will be in a given stock.” – Jesse Livermore
“Speculation is nothing more than anticipating coming movements.” – Jesse Livermore
“In order to anticipate correctly, one must have a definite basis for that anticipation.” – Jesse Livermore
“The world is not rational but we insist on applying a rational mindset to explain the world and try to predict what the market will do. This will only creates losses, disappointment and often even drama and disaster. Instead we need an integrated approach between the rational left brain and the emotional intuitive right brain so we can open ourselves to what the market will give us and not force our believes upon the market.” – Unknown
“Truth – more precisely, an accurate understanding of reality – is the essential foundation for producing good outcomes.” – Ray Dalio
“It is far more common for people to allow ego to stand in the way of learning.” – Ray Dalio
“If you’re not failing, you’re not pushing your limits, and if you’re not pushing your limits, you’re not maximizing your potential” – Ray Dalio
“Nature gave us pain as a messaging device to tell us that we are approaching, or that we have exceeded, our limits in some way.” – Ray Dalio
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