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The list of things investors are worried about at the moment is long and hardly distinguished… North Korea, Russia, ISIS, political shenanigans, re-regulation, and more.
But believe it or not, there's a far bigger problem, and it's one that could be far more damaging to your money than any of those things.
Today I want to talk about what that is and give you 10 ways to get around it… profitably.
Not one in 100,000 investors thinks it will happen to them, but the numbers tell a very different story.
Faced with incomprehensible risks, they'll "freeze up."
When this happens, they'll immediately lose the ability to do three crucial things in the pursuit of profits:
- Identify the best opportunities
- Control risk
- Stay in the game
If you're thinking that I'm overstating the obvious, you're right.
I want to make a point.
Making money consistently – and I mean big, life-changing profits – comes down to getting the basics right.
There isn't a fancy trading platform, a stock screener, or a system that will make a difference if you cannot do the three things I just mentioned.
And, if you can?
The world is literally your oyster – meaning you will have your pick of windfall gains year in, year out, and in all sorts of market conditions that flummox most investors and doom them to miserable returns. Or worse.
Here are 10 critical principles that – if you follow them – will keep you on the path to profits as conditions become still more complicated in the months ahead.
Rule No. 1: Invest on the Right Side of Major Economic Trends: That old investing adage "don't fight the Fed" serves as a good example here. Rising interest rate environments make meaningful gains difficult to sustain – unless you know what to look for. Far too many investors got it wrong in the 2000-2003 and 2008-2009 periods by betting on growth stocks in a recessionary economy, and they're still getting it wrong. Those investors are likely to get burned again should the markets lose their mojo.
The key here is the Unstoppable Trends we talk about frequently, because they're backed by trillions of dollars that will get spent "no matter what" in key areas like defense, technology, medicine, and more.
Rule No. 2: Think Like a Plumber: Big losses – like six inches of water in your living room – are expensive and can set you back years. Professional traders – and I'm not including the risk-junkie cowboys who drove the derivatives mess to heck in a handbasket – understand this. And because they do, they focus the majority of their efforts on avoiding losses instead of on capturing gains. It's counterintuitive, but it really makes a difference. Besides, if you keep those portfolio pipes from bursting, you won't have to worry about your assets leaking away, drip by drip.
Rule No. 3: Sell Your Winners: …
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About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.