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trading strategy

  • Featured Story

    This Coronavirus Hedge Can Double Your Money

    By , Quantitative Specialist, Money Morning -

    Just hours after I delivered a trade recommendation to hedge the coronavirus market drop, markets took another 3% to 4% hit. That's how fast shares are moving right now.

    There are a lot of unknowns when it comes to what's ahead for the coronavirus market impact. But using my history of trading in the stock market, I've found there is a sector that often leads the market lower in similar circumstances as we have today: the financials.

    I've been focusing on this group for the last week. A closer look shows us that there are a couple of companies within the financial sector that have actually not been making new highs, have been trading level since December, and are now starting to lead the rest of the sector down.

    These are what I refer to as my "Worst in Breed" stock picks as opposed to my usual "Best in Breed" picks. A "Worst in Breed" pick is a stock leading a hard-hit sector even lower.

    The coronavirus is going to have a global impact on the economy, which we'll see play out in the financials. These stocks are intertwined with all the large economies. There will be continued weakness in this sector.

    That's why today, I'm going to show you a way to play the entire sector's drop with two trades that are so easy to execute, even my mother could do it.

    Remember, there's no such thing as a shortage of opportunity - even among rising market panic - so long as you know where to look...

Article Index

This Coronavirus Hedge Can Double Your Money

By , Quantitative Specialist, Money Morning -

Just hours after I delivered a trade recommendation to hedge the coronavirus market drop, markets took another 3% to 4% hit. That's how fast shares are moving right now.

There are a lot of unknowns when it comes to what's ahead for the coronavirus market impact. But using my history of trading in the stock market, I've found there is a sector that often leads the market lower in similar circumstances as we have today: the financials.

I've been focusing on this group for the last week. A closer look shows us that there are a couple of companies within the financial sector that have actually not been making new highs, have been trading level since December, and are now starting to lead the rest of the sector down.

These are what I refer to as my "Worst in Breed" stock picks as opposed to my usual "Best in Breed" picks. A "Worst in Breed" pick is a stock leading a hard-hit sector even lower.

The coronavirus is going to have a global impact on the economy, which we'll see play out in the financials. These stocks are intertwined with all the large economies. There will be continued weakness in this sector.

That's why today, I'm going to show you a way to play the entire sector's drop with two trades that are so easy to execute, even my mother could do it.

Remember, there's no such thing as a shortage of opportunity - even among rising market panic - so long as you know where to look...

These 12 Moves Will Save Your (Financial) Life

By , Executive Editor, Money Morning • @privatebrief -

moves

I urge you to make 2018 the best year possible.

I've promised to help you along that journey.

Today, I'm keeping that promise.

While it's still early in the year - meaning there is still plenty of time to get yourself in a good groove - here are 12 moves you can make that will help you steer your course to financial stability and even wealth.

Think of it as a "Baker's Dozen" set of strategies that will shape your thinking, help with your planning, and secure your future...

We refer to them internally here as our "Downturn Lessons."

Now I'm going to share them with you...

This One Risk Management Tool Made the Difference Between Bankruptcy and $13 Million

By , Chief Investment Strategist, Money Map Report -

calculator

There's an old joke that's made its way around financial circles over the years. It goes something like this...

An investment banker walks into a room where his cohorts are in a meeting. "I've got good news and bad news," he announces. "The bad news is, we've just lost $100 million. The good news is, it wasn't ours." An associate raises his hand. "What was the bad news again?"

It's humor, but there's more than a grain of truth to the story. Whether we're talking about brokers, bankers, or even your most trusted financial advisor, you cannot rely on anyone else to care about your money and keep it safe.

At the end of the day, the only thing standing between your portfolio and catastrophic loss is your own caution and proper risk management.

This One Easy Trick Can Limit Your Losing Trades

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks -

Fast Profits

One phenomenon I find holds true in trading and investing is that some things that diehards think shouldn't work together actually work beautifully.

It's a lesson I learned early. It came from my love of eating, which led to my love of cooking. Specifically, it was a batch of hot, gooey brownies followed by a swig of beer - and, believe it or not, how delicious that odd combination turned out to be - that taught me to explore what the unexpected could do...

In this case, the unexpected combination that makes this strategy work so well pairs value investing with technical trading. This open-minded approach made my investing immensely more profitable because it turned me on to a "trick" that got me 70% fewer losing trades...

And I'm sure anyone who tries this trick - even dyed-in-the-wool value investors - is going to be delighted with their returns, too...

Three Reasons You Shouldn't Try to Invest Like Warren Buffett

By , Chief Investment Strategist, Money Map Report -

dividend aristocrats

Legendary investor Warren Buffett released his annual letter to Berkshire Hathaway shareholders over the weekend, sending many "experts" and investors into a frenzy as they try to mimic Buffett's investing style and, therefore, his profits.

But here's the thing...

Simply mirroring what he does will not get you where you want to go. Chances are, it won't produce the returns he gets, either.

I know that's surprising in an era when the Oracle of Omaha is rightfully lauded as one of the world's greatest investors, but there are three reasons why it's dangerous to try to invest exactly like Warren Buffett...

All Great Investors Know These Two Things

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW -

investing strategy with shah gilani

If there's one thing new investors aren't short on, it's advice. There are so many "investing adages," "Wall Street adages," and other golden nuggets meant to guide investors, it's overwhelming.

There's some truth to all of them, and they all have their place for investors who might find themselves facing a difficult situation.

But here's the thing - none of them really help investors make the most important investing call: the decision to get started. It turns out investors often find that figuring out the market isn't nearly as important as being in the market in the first place.

Fortunately, whether you're an absolute, rank beginner or someone who's been sitting this bull market out on the sidelines, I've got some help for you.

Here it is...

How to Use the Greatest Trading Tool There Is

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks -

greatest trading tool

It doesn't matter what you trade, it doesn't matter how you trade it, but if you use the most common and successful technical tool on the market, you'll enjoy great success - and great returns.

This also happens to be one of the oldest technical tools there is, and one of the most powerful. It's not to be underestimated.

And today, I'm going to show you how to use it like a seasoned pro.

It couldn't be easier...

The Easiest Way to Ride the Dow to 30,000

By , Money Morning -

Dow

On Feb. 18, a MarketWatch reporter made the case that earnings growth alone during Trump's first term had every chance to propel the Dow Jones Industrial Average to 30,000 and beyond - should the president's promised tax and regulatory reforms make it through.

The analysis created quite a stir on the cable news circuit. Stuart Varney, host of FOX Business' "Varney & Co.," asked our Capital Wave Strategist Shah Gilani to explain what he thought of the controversial MarketWatch call.

Of course, Shah being Shah, he did a lot better than that. He made his own surprising case for the Dow topping 30,000.

Even better, he told investors who might (understandably) be nervous about getting in at these highs the very best way to confidently and safely jump right in and ride the long, profitable leg up ahead of us...

Get Shah's Pick Here

Here's the Truth About Those Crazy Financial "Indicators" You Keep Hearing About

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks -

indicators

I just read an article from a financial publisher who was hoping to capitalize on the popularity of today's Super Bowl.

The article was based on an indicator, first proposed back in the 1970s by a New York Times sportswriter, the late Leonard Koppett.

Strange as it may seem, the article suggested that when a team from the original AFL won, the market dropped, and when a team from the original NFL won, the market rose.

Now, most reasonable people understand that this is just a fun case of correlation without causation.

But not everyone is reasonable.

This writer, who's going to remain nameless here while he gets a thorough debunking, spent more than 700 words explaining "why the Super Bowl Indicator actually works."

But first, I'm going to show you why this kind of nonsense keeps showing up in the media - even the financial press...

Double Your Money on the 2017 Rally with These Six Picks

By , Executive Editor, Money Morning • @privatebrief -

2017 stock outlook

Strategists at Bank of America Corp. (NYSE: BAC) are calling it "The Icarus Trade," a reference to the story of the boy who ignored warnings and flew too close to the sun - and plunged to his death when his feather-and-wax wings melted from the heat.

The Bank of America prognosticators are using this tale from Greek mythology for the post-inauguration prediction that they're making: a parabolic "melt-up" that carries global stock prices up another 10% in a continuation of the "Trump Reflation Rally" - followed by a total market "meltdown" later this year.

Around a week later and the S&P 500 is up more than 1.3%, while the Dow has zoomed well past 20,000 to sit 1.6% higher than it opened on Inauguration Day.

So it seems like the markets are headed toward fulfilling Bank of America's dramatic "Icarus Trade" prediction...

Well, we think it's dead wrong, thanks to a bold call by Stealth Profits Trader Editor D.R. Barton, Jr. And if you caught my interview with him this past Sunday, you'll know exactly why. 

You see, his prediction is almost the exact opposite of what the folks at BoA are predicting.

Although it's no less dramatic, D.R. believes there's lots more upside in store than what the doomsayers are predicting.

It seems like the 2017 rally is headed toward fulfilling that prediction. But Bill thinks it's dead wrong, thanks to a bold call by D.R. Barton. So let's look at the best stocks to buy...