Dear Friend,
I know we just met, but I’m afraid I have some shocking news to share. Despite what you might be hearing from the talking heads on TV or the Wall Street establishment, the simple truth is…We have just witnessed the death of investing as you knew it.
We are NEVER going back to the way things were. And the faster you face this new reality, the faster you can start to profit from it.
So many investors I talk to are waiting for the market to return to normal. Folks, this IS the new normal.
I am astounded at how many people are still sitting on the sidelines, waiting for the “right” time to invest. And I’m appalled by how many people are still losing money because they are trying to make money the same way they were when they suffered devastating losses in the market crash.
The last 18 months have shaken many people's faith in investing to the core.
First, it was the devastating bear market that destroyed people’s retirement dreams. Then a reminder that Wall Street is rigged against individual investors as Goldman Sachs came under fire. Then a European debt crisis. Then the mysterious 990-point one-day free fall.
But despite all that, most investors are missing out on the bigger picture.
You MUST change the way you are investing, or you are doomed to suffer the same crushing losses again. And you must start today.
It’s time to try a smarter way to invest—and I can show you how.
Profit No Matter What
the Market Does
Before we go any further, though, I should probably introduce myself. I’m Jon Markman, editor of Trader’s Advantage. You may have read one of my many columns on MSN Money or TheStreet.com over the past dozen years, or seen me on CNBC. I’m also a co-inventor on two Microsoft patents and have been a longtime pioneer in the development of stock-rating systems and screening software.
The reason why I bring up the last point is because a few years ago I developed what has to be the most powerful and predictive stock-ranking system ever. It’s a ruthlessly objective and deadly accurate trading system that spots fast-moving price swings in the market—before stocks take off.
And it has enabled us to continuously rake in huge gains like these no matter what the market is doing:
- Hershey: +272% in 18 days
- Gilead: +111% in 13 days
- eBay: +87% in 2 days
- Ryder: +86% in 2 days
- InterContinental Exchange: +77% in 18 days
- Newmont Mining: +65% in 3 weeks
- Apple: +50% in 1 day
- Direxion 3x Bull Technology: +43% in 3 weeks
- Teekay Shipping: +40% in 2 days
Just One Goal: Make Money
People ask me all the time, “Jon, what’s your investment philosophy?” And my answer is always the same… to make money.I’m not a bear or a bull.
Look, to profit in today’s market, you must forget those old labels.
When it comes to making money, I’m an agnostic! I’m an opportunist. I’m a supreme realist. I’m a mercenary. I’m in it for the profits. I’m in it to win, and that means I’ll be on whoever’s side is winning. And I can put you on the winning side, too.
Who will win the current battle for market direction? I don’t know (you’ll never find me pretending to have a crystal ball), and frankly, I don’t care.
So please don’t waste another minute wondering whether this volatile market is headed up, down or sideways, because I’m here to tell you it doesn’t matter.
The market is moved by forces you can’t predict, let alone control. We’ve gotten PLENTY of evidence of that over the last few years.
But you are NOT at the mercy of the markets.
You can make money week in and week out no matter what the market does, as long as you are willing to do things a little differently.
Many investors have not yet accepted that the old ways of investing no longer work. That’s why during last year’s raging bull market, only 3 out of 10 individual investors made money!
Don’t let that happen to you. Every day there is an opportunity in the market to make money. Every single day. Regardless of which direction the market is headed.
But if you want to profit in today’s market, you must play by the new rules of investing.
The 4 New Rules of Investing
1. Buy and hold is dead.
I hate to be the one to tell you this, but “buy and hold” is a marketing slogan, not a proven investment philosophy! It was invented in the ’80s by mutual fund companies and Wall Street to lure more people into investing.Ask any investor who used to believe that “buy and hold” was the right strategy—that good stocks would always go higher if they were only held long enough—what they have now to show for it. Mostly lots of losses.
Look at the brutal roller coaster “buy & hold” investors have been taken on over the last 10 years in the DJIA, NASDAQ, and S&P 500 indexes…
2. Diversification won’t save you.
You’ve heard the bromide that says you can survive anything with a diversified portfolio? It’s flat-out wrong. In a down market like we just lived through, everything goes down.One of the distinguishing features of the 2008 bear market was that all asset classes, industries and regions were correlated with each other.
Financial, utility, technology, energy, drugs and real estate stocks… they all went down 52%, 32%, 42%, 38%, 62% and 45%.
Diversification didn’t offer a lick of protection. Just ask the president of Harvard University, whose school’s well-diversified $37 billion endowment faced "unprecedented" losses during the downturn.
3. Speed is in.
Unfortunately, people think they lack the intestinal fortitude to trade more frequently, but what they don’t know is that it doesn’t take guts to trade. It takes flexibility and a good plan. I’ll give you both.In today’s volatile market, it is critical that you take advantage of the market’s swings. We have seen—and will continue to see—plenty of big knee-jerk reactions to news that presents big profit opportunities for the nimble.
4. Don’t take a knife to a gun fight.
In today’s market, you must use every weapon at your disposal. A mercenary uses whatever weapons work—you don’t just go into battle with your .38 caliber; you take your knife, bazooka and poison with you, too.You never know what weapon will get the job done. Think Jack Bauer from the TV hit 24— not the Marquess de Queensbury.
The same goes for us. We will use whatever tool gives us the best chance to win today—stocks, options, bonds, leveraged funds. If it can help us make money, it’s in our investing toolkit.
The Truth About the Market
Now, I'm no raging optimist, but we're in the midst of a new bull cycle.It may not feel like it, given recent events—investors freaked out over Greek debt, a contagion effect on Spain, speculation that U.S earnings have peaked and the great global capital machine would soon seize up. As a result, in just a week's time, the Dow shed nearly 6% while the S&P fell more than 6%.
But declines like this are normal. These declines are all about resetting the deck on valuation and blowing the froth off the top in new bull cycles. Now, don't get me wrong—there are plenty of serious problems around the world. But the amount of fiscal and monetary liquidity that flooded the global financial system over the past year should have long-lasting consequences.
The current bull cycle—just barely a year old—is still not fully established and has plenty of room to run.
Sure, it's being tested in a big way right now. In fact, by a number of metrics, the situation is very oversold: Less than 3% of stocks are above their 10-day moving average. This level of stock market compression hasn't been seen since the market was melting down into its bear-market low back in February 2009.
As part of that bottoming process, the sector and industry groups that will lead the market higher out of the oversold condition are the ones that will move higher first. I see a lot of potential in the metals and materials stocks. Nickel is turning things around, and, of course, gold could also lead a rebound.
Due to the terrific compression, the temptation will be to get long. But I am really wondering now if the psychology of market participants may have been harmed by that recent 995-point mid-day slide on the Dow. Since there are no good explanations for it, people may just stand clear of the markets.
So I think we may see a period where investors stand back and re-evaluate the markets. But if we get over this hump in the next couple of months, we'll know more about the cycle's potential longevity.
In the meantime, we're going to attack this bull cycle just as we have been for the past year—deploying our capital into strategic long trades and buying options on select names.
It's a strategy that has paid off big-time for my Trader's Advantage subscribers…
- Google calls, up 60% in 3 days
- Kimberly-Clark calls, up 106% in 6 days
- AT&T Calls, up 121% in 10 days
- Heinz calls, up 71% in 15 days
- Verizon calls, up 171% in 21 days
Show Me the Money
We’ll ride rolling waves of liquidity and hope in certain sectors, and exit just after they crest. Once again, investors who try to buy and hold through it all will suffer.My advisory service, Trader’s Advantage, is designed specifically for markets like this.
There are a few areas I’m paying close attention to right now for our next round of profits.
- Regional Banks and REITS.
Most people stay away from regional banks and REITS, but I think now is the time to be involved. They are so unloved, and the Fed’s easy money has made them compelling plays now—they are already on the move, but most investors don’t realize it and will miss out.
- Aerospace and Defense.
Currently, Boeing is building new fleets for emerging markets, and there will be a lot of small- and mid-caps directly in line to profit over the next few years. As our somewhat permanent state of war continues, supplies will be needed for these sectors. I think Boeing and its suppliers will be big winners over the next three to five years.
- Car Manufacturers
Car makers are finding their way back on the map. Manufacturers and parts makers are finding their footing again as consumer spending on automobiles continues to recover. In addition, auto loans are incredibly cheap right now so buyers can find great deals.
- Emerging Markets.
For the rest of the decade, emerging markets will prevail, with a period of a few months when avoiding them will be key.
Every sector has its down months. But while the skies are blue, we will play with individual companies as well as leveraged ETFs—particularly the new 3X ETFs that allow triple the profits in China or Latin America.
Markets may get ahead of themselves, so we’ll step aside or try to catch the turn with shorts or inverse funds as well.
7 Most Common Mistakes
Investors Are Making Today
In this confusing and turbulent market, many investors are getting tripped up by some costly mistakes. Here are seven common and incredibly costly mistakes investors are making today that I want you to be sure you avoid.Mistake #1: No Position Is a Position
Not being clear about the overall direction of the market is a cardinal sin. Stand in the middle of the road, and you will get run over—from both directions.Cash says: “It’s a bear market, I guess.” If you have a bullish outlook, you need to be long—and stay that way until your outlook changes.
I guarantee that sitting on the fence will dent your tender parts. And I promise that if you join me at Trader’s Advantage, you will wake up every day knowing which side of the fence we’ll be making money on.
Mistake #2: Buying Weakness
Only a fool thinks he can consistently buy low and sell high. This whole “you liked it at $15, you’ll love it at $5” shtick is utter nonsense. If you doubt me, call up a chart of Citigroup… or GM.We win by buying high and selling higher, and shorting low and covering lower.
Successful investors are like mercenary soldiers who volunteer for duties on whichever side it looks like is winning. So if you see strength—rising stock prices—sign up!
Think this way every day. Do more of what's working and less of what isn't. Your top priority is the trade that’s working best.
Too many people lose money trying to “fix” problem investments. Of course, as you know, not every trade is a winner. But we have managed to limit losses in losing trades to less than 8% on average in each trade because I am committed to correcting errors as quickly as possible and refuse to sugarcoat losses or sweep them under the rug.
Ditch problems. Nurture successes.
Mistake #3: Exiting Early
Some of the best parties you missed are ones you left early; some of the best concert sets are the ones you never heard, because while the third encore played, you were beating the crowd out of the parking lot.And some of the quickest 50% profits you’ll miss are because you got out a week early.
Have you ever heard the old adage “you never go broke taking a profit”? Complete and utter hogwash. Be patient… that last 50% will be a sweet reward.
Mistake #4: Staying on the Sidelines Because of Market Uncertainty
Many investors refuse to realize that uncertainty is a natural condition. There is ALWAYS uncertainty!By focusing on the intermediate term at Trader’s Advantage, we don’t try to forecast too far into future. Instead, we try to thoroughly understand the here and now, and then leverage logic, history, research, experience and intuition to make our money. We think of this as a matter of predicting the present.
My goal is to help you monetize technical, fundamental, economic, thematic, cyclical and even pop culture observations by profiting from sharp movements in various investments in a relatively short amount of time. We could hold stocks a matter of days, or as long as three months.
The last few years have been a tough stretch for many investors, but our approach allows us to adapt quickly and take advantage of opportunities in all market conditions.
That’s why I stay in frequent touch with my readers via email every day, telling them which strategies we need to employ to make our money and minimize our risk, and giving them the specific trades to make it all happen. I invite you to join us today.
Mistake #5: Not Using Technicals AND Using Fundamentals
Fundamental investors hate technicals; chart traders laugh at investors who rely on fundamentals. Both are wrong to exclude the other.In espionage, you use every piece of intelligence you can lay your hands on. The technical rules are simple. We apply them rigorously. The fundamentals, likewise, are easy enough to uncover. We use both to pick winners.
Best yet, you don’t have to lift a finger. I do all the work for you when you join my service.
Mistake #6: Getting Scared Off by One-Day Moves
Do not panic and bail out because of a few days that go against the primary trend. We’re going to see a lot of continued volatility in the market. Use those days to your advantage.If your outlook is bullish and you get a down day in a profitable position, add to your position. If the next day is a down day, add to your position again. Continue to add to your position on down days as long as the market trend is still pointing higher.
Obviously, the reverse is true if you are short.
Mistake #7: This Is Not an Investors’ Market!
Confidence remains extremely fragile, not just for long-term investors but for traders, too.The fact is, many investors have turned to trading precisely because they have little confidence in the “system.” They want to play this market close to the vest.
They discount the future but can see opportunity in the very near term.
In short, no one believes this rally means that all is right for the market and the economy, but that’s not stopping smart investors from making a ton of money in it right now—including my Trader’s Advantage members!
Remember, capital preservation is key, but you must be ready to make money on rallies. Who cares if this is a “false hope recovery rally…” make money from it, then get out and spare yourself the next round of decline. Wash, rinse, repeat. We’ve done this time and again in Trader’s Advantage. Make sure you’re with us for the next round of profits!
Get Back on the
Winning Side of Investing
If you agree that it’s time for a different investing approach, then put my unique and powerful strategy to work for you over the next 30 days, risk-free.You give me 10 minutes a day, and I’ll show you how to bank 50% profits month in and month out.
In fact, I’m so sure that my Trader’s Advantage service will lock in incredible profits, that I’m offering you a chance to try it for HALF the regular cost.
Give Trader’s Advantage a try today, and you’ll get:
Daily Updates. Each day, you’ll get an email that updates you on all of our positions, shares my market analysis and tells you how we’re making money that day no matter what the market does. Let me help you capture profits of 25% to 100% in less than 30 days. And all you have to do is spend 10 minutes a day following my simple buy and sell recommendations. | |
Unlimited Flash Alerts. The moment I have a buy or sell signal for you, I’ll alert you via email so you can take immediate advantage of the trend and profit from powerful and sudden swings in the market. | |
My Complete Buy List containing all of my current recommendations, with buy limits, targets and other quick reference information, so you can act immediately. | |
24/7 Access to My Private Website, with unlimited access to our complete archive of past Trader’s Advantage issues, stock quotes and a wealth of other reference material that can help your profits skyrocket. | |
Guaranteed Profits. I stake my reputation on every trade I make. If my trades don’t give you at least 50% gains in the next 30 days, you won’t pay a dime! |
And I almost forgot…
Remember, even if you decide that Trader’s Advantage isn’t for you, the priceless information contained in your free report is yours to keep no matter what.But I’m confident that as soon as you see the spectacular profits in the days and weeks ahead, you’ll want to stay on board for the long haul with the rest of our thrilled subscribers.
So, you have a choice: You can continue to put your financial future at the mercy of the clowns in Washington and Wall Street...
Or you can take action today by grabbing your free reports and experiencing the thrill of filling your portfolio with double- and triple-digit gains in a matter of just days and weeks.
Which sounds better to you?
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