I just released a new video yesterday, a 2-minute recording from one of my recent trading challenge webinars, watch it here:

In it, youll hear me basically predict this market dip that weve been experiencing the past 2 weeks just days before the selling really began.

Its the EXACT same method I used to avoid getting burnt in the 2000-2002 crash (I actually made roughly $1 million shorting as you can see from ALL my trades posted on Profitly ) and the 2008 crash (I was just ret-starting my accounts at $12,415 when it happened, but I didnt lose and within 3 years, Id turned that into $220,000, every trade detailed on this bloggo fetch you lazy readers)

Since we posted this video and since those who have been following me for years know I have avoided every major crash since Ive begun trading, Ive gotten dozens of emails from people who want to know my secretam I psychic?

No, my reasoning was actually very simple and Im glad that many of my trading challenge students benefitted from the call.

You need to watch my entire webinar to really get it, and better yet apply to be a Challenge student to gain access to my webinars EVERY week, but in the meantime Ill give you same basic rules to predicting market crashes:

1. UNDERSTAND SEASONALITY almost every major crash has happened in September or Octoberunderstand these are high-risk months just like fat people are high-risk for heart attacks.

2. LOOK FOR FADING very rarely do crashes happen when stocks are hitting new highs, theres usually a few days of fading to warn you of an impending crash.

3. BEWARE OF POTENTIALLY DANGEROUS NEWS whether its excessive valuations, excessive leverage used by financial firms or a government shutdown, stock market drops and crashes can be pinpointed on some hugely negative newsespecially after big runups like weve had.

4. LOOK FOR BUBBLES just look at recent charts of pretty much any major internet company, especially Facebook (FB), Tripadvisor (TRIP), Yelp (YELP), Zillow (Z) and Priceline (PCLN)those kind of runups cant be sustained for very long.

5. DONT FORGET THE PAST everyones rejoicing that our stock market is so strong and yet were barely 5 years past the point of when it nearly all came to a crashing haltwe havent healed ourselves, weve just forgotten the paston purpose too because our past is ugly. Dont make the mistake that most investors and traders are making, remember the past and remember to sell into giddiness and forgetfulnessjust watch, therell be screw ups that will be revealed and the market will ebb and flow as alwayslearn to recognize this pattern.