 Dear Reader, Here we are 7 months into 2010, and the stock market is still in negative territory and just when you think there is a light at the end of the tunnel, it turns out to be an oncoming train.
One commentator I heard the other day described the stock market as a "meat grinder", I can see his point. If you were just an average investor you would definitely feel that way. After a very rough 2008, and encouraging latter part of 2009 and a very tiresome 2010, investors have every right to feel discouraged.
However, many investors, unfortunately, play "victim" at times like these. They make 2 major mistakes.
The first thing they do wrong is buy the "wrong stocks". Just because a company was good in 2007, doesn't necessarily mean it's good today. Yes, it might be a big company, and you feel safe with having shares in it, but it keeps going down doesn't it, or at best, won't go up. These days, you have to think a little "outside the square". You have to recognise things have changed in the last 2 years and they may not return to the way they were for a few more years. The Global Financial Crisis changed all the rules and its pointless sitting on the sidelines waiting for things to improve. By the time they do, the opportunity you have, will have passed.
The second mistake they make, is they wait for good news. They sit on their hands when the share market slumps, and only jump in and buy when the market is going up. Of course, then it goes down again. Hence, the term "meat grinder". Average investors are buying high, and selling low in a panic when the news "turns" the next day.
It's understandable for people to do this. They only want to spend money on shares when they feel good about the decision. However, this is "emotional investing". You feel good when the market's going up, and you get a rush of blood to the head and you think the good news is here to stay - you leap in and buy, often the wrong stocks! This is a mistake.
The only way to make money in a "meat grinder" market is to:
1. Only buy stocks when they are cheap and the market is having a bad day.
2. Never chase a stock. Always set strict limits on how much you'll pay.
3. Don't buy a stock based on past "glories". Buy a stock based on what the future holds. Do your research properly and think about the future, not the past. Investing with history as your guide is like driving a car looking through the rear view mirror. Some stocks do go up in markets like these. The average Trident Confidential stock is up over 20% in the last several months.
4. Always have a strict exit strategy that is in place. Don't let small losses turn into big ones - ever!
Follow these rules and you'll not only survive the "meat grinder" market - you'll prosper. As Warren Buffett says, "Be greedy when others are fearful, and fearful when others are greedy".
Nothing said has ever been more true when it comes to the stock market.
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The Bottom Line The Australian market is down around 10% this year and most investors are probably down around the same. Not a happy time to be an investor. However, this year the Trident Confidential portfolio is up over 30%. That's 4 times better than the market performance. How? By just following the 4 rules shown above. Almost every stock in the portfolio is in profit and most have been bought during 2010.
It's possible to make money in any market, if you buy the right stocks at the right time and leave your emotions to one side.
To prove it to you, I'd like to make you a Guarantee. |
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I will Guarantee that over the next year you'll make money in the stock market if you Join Trident Confidential. Not only that, I'll also Guarantee to double the market's return. If the market is in negative territory in a year from now, Trident Confidential won't be.
I'll show you:
- What stocks to buy and when
- Exactly what to pay and where to set your trades
- When to sell and how to ensure any losses (if they occur) stay small
The prices we record in our portfolio, are the same prices you'll pay if you follow our simple rules. It's very simple. All we need is around 30 mins to an hour per week of your time. Of course you'll need some money to invest as well. Many of our subscribers have started with just a few thousand dollars and built up from there. This is not daunting, but it will require a little effort from you and commitment to do something about your financial future.
Join Trident Confidential, and I guarantee that I will show you how to make a profit equal to, or greater than double the market's performance over the next year, and if the market is negative, I guarantee that our portfolio won't be. If I fail, for whatever reason, you won't pay another cent until I make good my guarantee.
Since we started in 2005 our returns have been 148% in 2005, 74% in 2006, 98% in 2007, 23% in 2008, 113% in 2009 and over 30% this year. So, while past performance is not an indication of future performance, our record isn't too bad.
SPECIAL OFFER - In addition to our Profit Guarantee, join us before midnight Monday 26th July and I'll extend your membership by an extra 2 months! Pay for 12, get 14 months of membership. |
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All the excuses people use to justify why they don’t subscribe, invest or change their financial future Day in, day out we have enquiries from people who really want to change their financial circumstances, but for one reason or another don’t do anything. Here is a list of the usual excuses people make for this. At the end of the day, they are all valid but you can see here, we debunk every one of them. There really is no good reason not to take action. So, if you really are seeking a relatively safe and reliable way to make money, take charge and do something – it is the only way anything will ever change for your future.
Click Here to Read the Top 10 Excuses People Give Us... and Our Reply |
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If you have any questions about Trident Confidential and what we can offer you, please give us a call on (02) 9544 5135 |
Until next time.
Kind Regards
Lance Spicer
Editor, Trident Confidential - Still...The World's Highest Returning Newsletter since 2005.
Lance Spicer is qualified and licensed to provide investment advice on Managed Investments, Equities and Derivatives.
Trident Investment Management Pty Ltd is an authorised representative (No 339798) of The International Securities and Derivatives Group Pty Limited (ABN 22 103 552 683) holder of Australian Financial Services License (AFSL 227544)
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