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Many investors are struggling to make sense of current market conditions. That's normal... but not the goal. Making MONEY is.
It's important to remember that the markets do their thing based on mood, not necessarily logic. Understand the difference, and you can maximize profits while also minimizing risk.
Here's what you need to know...
Key Takeaways
- Look for companies making moves that give them staying power. These are going to be the companies going up when everything else is going down.
The key to maximizing profits and minimizing risk is looking beyond what a stock is doing. You've got to find out why it's valuable to make sure your positions are appropriately hedged. That means buying "must-have" companies that are making business moves that can help them hold or increase that value when their sector finally starts acting the way you expect.
- Change your tactics. Lots of investors think they have to pile in all at once. That's not true and, in markets like we've got right now, can actually be bad for your portfolio.
Two of my favorite tactics include dollar-cost averaging and its lesser-known cousin, value-cost averaging.
Both help you take advantage of the market's natural swings while also dramatically increasing your profit potential. At the same time, dollar-cost averaging - splitting your money up into chunks that are invested over time - forces discipline into your investing process while also making sure you have a long-term perspective - something a lot of investors are missing at the moment.
- Finally, manage your risk. People talk constantly in terms of how much risk an investment has or doesn't have, which is a mistake. Every investment has risk, but not all risks are worth the investment - which is why we constantly talk about the importance of specific risk management tactics like trailing stops and protective puts as a means of maximizing profitability AND minimizing risk.
To get Keith's latest recommendations as soon as they're published, check out his free Total Wealth newsletter. There Keith explores the keys to profiting in any situation – must-have companies in the six "Unstoppable Trends." Anyone keyed into these trends can beat the market – especially with Keith as your guide. Click here to get Total Wealth yourself.
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About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.