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Worried about coronavirus chaos?
You're not alone. In fact, there are millions of investors in your corner.
I cannot recall a scarier set of circumstances in the 37 years I've been active in global markets.
You're being bombarded with scary headlines, crazy conspiracy theories, and a sea of red ink from people keen to sell you the next hot stocks. It's a media blitz of unprecedented equal.
The thing is… doom is never the answer.
Getting back to basics is.
That's why I want to share the only "back to basics" technique I know of that's never failed to produce huge profits over time.
I thought you might be.
Here's how to cut through the hysteria and line up big profits at the same time.
Go "Back to Basics" with This Investing Strategy
Millions of investors are shaking in their boots because fears of a market crash have them scared silly.
I'm actually licking my lips.
Big down days always create opportunity. Not sometimes, not at a few select moments, not once in a while… always.
Knowing how to harness the upside automatically is key.
Many investors think they have to be stuck to their screens or smartphones all day so that they can catch the squiggles, niggles, and zigzags that many are convinced lead to big profits.
Today I want to share a Total Wealth Tactic that can help you build bigger profits faster and, best of all, automatically. No screen time, no missed trades, no slapping yourself in the forehead because you took your eyes off your things for an instant.
It's called "dollar-cost averaging," and ANYONE can do it.
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Young or old, rich or poor, just starting out or looking maximize your holdings and finish rich, YOU can do this.
Dollar-cost averaging simply means that you buy into stocks and other investments by spreading out your money over time… days, weeks, months, even once a year… rather than diving in all at once.
The time frame really doesn't matter too much.
- Dollar-cost averaging helps you "buy the dips" on big down days when other investors are too scared to buy.
- Dollar-cost averaging also helps you avoid piling in all at once when prices are high and doing so is extraordinarily risky.
This is a very important concept right now.
Because "dollar-cost averaging" will help you score the biggest "deals" and line up huge profit potential that is practically immune to short-term fears… and longer-term pullbacks, if that's what is keeping you up at night.
It's a big part of being "in to win," something you hear me talk about often.
How Dollar-Cost Averaging Works
This is an especially good tactic to use on stocks you might otherwise think are "too expensive" for your retirement account – think Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), and Amazon.com Inc. (NASDAQ: AMZN).
Imagine you automatically send $300 each month toward a stock, let's call it XYZ, for your retirement fund. It's January, and shares of the stock are trading at $50 per share. Your automatic purchase of $300 worth translates into six shares:
$300 ÷ $50.00 = 6 shares
In February, perhaps there is a health scare in China that drives the stock down to $30. But, in sticking to your disciplined approach, you still devote $300 as planned. This time, your automatic $300 purchase translates into 10 shares:
$300 ÷ $30.00 = 10 shares
The following month, it trades at $46.15. You automatically devote another $300 and purchase 6.5 shares:
$300 ÷ $46.15 = 6.5 shares
By April, let's say that there's a rally and the stock hits $54.50 per share. You automatically pick up another 5.5 shares:
$300 ÷ $54.50 = 5.5 shares
After your April purchase, you're sitting on 28 shares for an average buying price of $42.85 per share. In total, you spent $1,200 ($300×4).
Now, consider if you had instead spent all that $1,200 in one go back in April.
$1,200 total investment ÷ $50.00 per share = 24 shares
What I like about dollar-cost averaging it that it helps keep risks low yet returns high, because it prevents you from investing a single large amount at the wrong time… like now, for example, if you're worried about the coronavirus and all the implications that come with it.
I'm also a big fan of the discipline dollar-cost averaging instills because it takes emotion out of the equation.
And finally, dollar-cost averaging forces you to buy more shares when prices are low, which means that your "cost basis" – a fancy way of saying your total cost – actually drops, and that in turn means you have that much more profit potential!
Here's an Example…
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.