The tech-centric Nasdaq Composite Index hit a new all-time high on July 20. It was the Nasdaq's 10th straight winning session.
The rest of the market is doing well, too. Last week marked the 27th new high for the S&P 500 this year, making 2017 one of the index's best years in decades.
This historic bull market is now entering its ninth year.
And so I know that many of you have been holding onto your cash and hoping for a sell-off to lower prices.
You're not alone. The Wall Street Journal reports that fund managers have increased their cash holdings by 10% this month to 4.9% of assets.
I understand that impulse.
But I hope you're not so inclined.
Because if you've sat out the year so far, you've left a lot of money on the table.
You know that now.
I'm here to tell you today that it's still not too late to make your move.
But I know that will take a "gut check."
That's why I'm showing you three tools that will make that "gut check" easier.
They'll keep you in the market - and give you the confidence you need to keep making big gains with tech stocks...
At the risk of sounding like a broken record, I can't say it often enough - the road to wealth is paved by tech. And I can prove it...
Since the bull market began on March 9, 2009, the Nasdaq is up 346%. That's more than 50% better than the S&P 500's return over the period.
And it's all because of the new "convergence economy" we've been talking about here for some time now. These days, every business is a tech business, meaning the sector will beat the overall market for years to come.
Having said that, however, it bears noting that no stock, sector, or market rises in a straight line forever. Sooner or later, the market will lose steam.
Let me be clear. I see plenty of upside ahead through the end of 2017. And it bears repeating this is not the time to horde cash and hope for better prices.
Instead, you want to be in tech stocks. And if you use these three Gut Check Tools, you can invest with confidence - and protect your market-crushing gains.
Take a look...
Gut Check Tool No. 1: Take "Free Trades"
I cannot emphasize enough the importance of this tool. Then again, it's one I use all the time in my members-only services, including Nova-X Report.
With this one savvy method, you can end up owning shares of a stock - or a whole portfolio for that matter - for free.
Here's how it works. When a stock doubles in value, you sell half of your holdings. By doing so, you get out all of your original capital. After that, you're playing on the house's money.
Take the case of a fast-moving display tech stock I recommended to Nova-X readers in May 2016. Almost a year to the day later, we sold half for roughly 106% earnings.
We did even better with a biotech stock I recommended to Radical Technology Profits members in October 2016. Last month, we sold half for gains of roughly 111% in roughly eight months.
The second half of that trade is now up 134% - and we're locking in profits with the savvy use of Gut Check Tool No. 3...
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Gut Check Tool No. 2: Play "Moneyball"
Almost by definition, a market top means that it will get harder to find stocks that can double quickly. This is no time to give into greed and go chasing after "hot stocks" getting hyped on Wall Street.
Instead, you want to remain a disciplined and focused investor. And that means accepting smaller profits but making sure you lock them in.
That's why what I call the "Moneyball Method" is so effective. I named it after the book and movie "Moneyball," which details how my hometown baseball team, the Oakland A's, won 20 straight games in 2002 with only a shoestring budget.
The A's weren't looking for home runs. Their idea was to get as many runners on base as possible, meaning they looked for singles and doubles.
Rather than looking to double your money, you might want to take some gains off the table when a stock has advanced, say, 40%, which is still a big win.
Remember, the faster a stock moves, the more you'll want to protect some of those "windfall gains" before it has a chance to reverse on profit taking.
Gut Check Tool No. 3: The Autopilot System
You can think of this tool as the flip side of the Moneyball Method. The idea here is to lock in specific gains no matter what happens with the market or your specific holdings.
That's where the Autopilot System comes in handy. It's a unique way of protecting profits with a combination of taking gains and using trailing stops.
I suggest a two-tiered approach. First, set a limit order on your stocks when they hit your target returns, for instance, 30% in a few months' time. You would then put in a limit order to sell half the stock when it hits that figure.
Let's say you sold half of XYZ Tech when it was up 30%. Now you can afford to see if the stock still has more upside while at the same time protecting your profits against any downturn.
You would set a trailing stop so you exit with solid earnings on the second half. If you had a 10% trailing stop that got triggered, you would exit with combined profits of 20%.
The beauty of the system is that you set up your minimum profit figure in advance. After that, there's no need to worry about what happens, because the Autopilot System is protecting your portfolio.
Of course, you'll need to review your portfolio at least once a month and keep these figures updated. That because most brokers offer a "good till canceled" option.
Thus, by using all three of our Gut Check Tools, we can continue to invest in winning tech stocks and know that we're prepared for anything - even a correction - the market throws your way.
And remember, one of our main missions here is uncovering the investing rules and tools you need to both make money and protect your portfolio.
If you employ the tips I've shared with you today, you'll wring even more profits out of this amazing tech bull market.
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The post You Won't Sweat Your Next Gut Check with These Three Tactics appeared first on Strategic Tech Investor.
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.