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How to End up With a 434% WinnerBy
Thursday, March 9, 2017
We're up 434% on one trade in my True Wealth Systems newsletter...
How did we do it? How do you end up with a 434% winner?
The answer is simple. But it's hard to put into practice...
If you want to make 434%, you can't sell when you're up 5%, or 10%, or 25%, or 50%, or 100%.
The math is obvious... If you sell when you're up 20%, you'll never see a 400%-plus gain.
Have you ever had a 400% gain? Why not?
The most likely reason is that you sold too early... My friend, you can't do that! Selling early hurts – more than you can imagine...
What distinguishes a great track record from an ordinary one? It's typically one thing: a couple of big winners...
If your track record includes a lot of ordinary returns and a couple of big winners, then chances are you're doing well with your investments.
But if you have a lot of ordinary returns and NO big winners, then chances are you're underperforming the market.
You can't underestimate the power of big winners. You can't sell early.
You see, your investment doesn't know or care where it's been. It doesn't care if you're sitting on a profit... or a loss. It doesn't know or care that it's up 100% or more. Only you care. And an investment doesn't start falling just because it has gone up 100%.
You have to change your thinking on this. Let me show you how I think...
The headline to the December issue of True Wealth Systems read: "Up 289% – With Triple-Digit Upside Remaining."
Think about that: We were up 289% on one trade... and we didn't sell! On the contrary, we told readers to buy even more!
In that December lead story, I wrote, "In two years' time... If things go according to plan, we'll lock in a gain of roughly 700%."
Now – here in early March – we're up 434% on this trade!
The simple secret to making huge returns – and building an outperforming portfolio – is to NOT sell too early.
Change your thinking on this. Resist the urge to take the profit just because it's there. You will end up a far more successful investor than you can imagine...
Good investing,
Steve
Further Reading:
"You must take steps to make sure your winners are larger than your losers," Steve writes. "This is where nearly all investors fail..." Your portfolio's success hinges on one crucial investing behavior. Learn how to harness your big winners here: It's Time to Change Your Thinking About Making Money.
"How do you know which winners you should hold for the long haul?" Teeka Tiwari writes. In a recent essay, he explains a common-sense way to pinpoint your superstar stocks. Read more here: Follow These Two Rules to Hold on to Your Long-Term Winners.
Market NotesINVENTORIES ARE TIGHT... WATCH THIS GROUP Today's chart highlights a winner in a "Sjuggerud approved" sector...
Regular DailyWealth readers know Steve has been bullish on housing since the bottom of the bust. He has been practically begging readers to buy property in Florida... After the bust, Florida homebuilders stopped building new homes, and inventories shrunk. It appears that trend carried across the nation...
Last month, major cities in Washington, Colorado, and South Dakota reported that home inventories fell to record or near-record lows. Home buyers are facing stiff competition, and bidding wars are sending prices higher. But it's not all bad... The spike in prices is benefiting homebuilders.
For proof, look at shares of PulteGroup (PHM). The $7 billion homebuilder operates in 50 markets across more than 25 states. In the chart below, you can see that Pulte shares have been on a tear... They're up more than 25% this year and just hit a fresh multi-year high. As the middle innings of this boom continue, Pulte's share price will likely keep rising...
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