How To Avoid What Most Investors Fail At Consistently
Fear. Anxiety. Excitement. Relief. Then fear...
This gambit of emotions is likely what you've gone through the last few weeks if you've been keeping close tabs on your portfolio. Concerns over the mid-term elections, the trade war with China, ideas that the Federal Reserve will keep increasing interest rates, and slower growth prospects this earnings season... these have all shaken investor confidence.
New Retirement Solution: 'Executive Dividends'Issued by some of the biggest corporations in America but unreported by the press, these "Executive Dividends" can be worth a fortune--if you know where to look... See how to cash in HERE, starting at $3,080 per month .
The market's volatility has definitely had an effect on our portfolio here at Maximum Profit -- the system has given us a secondary sell signal (a trailing 15% stop-loss) on a handful of positions.
On October 8, I sent Maximum Profit subscribers an alert letting them know that two of our stocks had hit their trailing stop-losses. The first was cybersecurity firm Okta, Inc. (Nasdaq: OKTA ), which we closed out of with a 21% return. The other stock was Atlassian Corporation (Nasdaq: TEAM ), which we cut short for a small 6% loss (the stock has continued to drift lower since then).
Including these four sells, we were closed out of nine holdings in the last three weeks.
Why I'm Glad We Had To Sell
That's the beauty of what we do at Maximum Profit -- and it's the one thing that individual investors fail at most consistently .
Take, for instance, former Maximum Profit holding Seadrill (NYSE: SDRL ). Investors who got out of the stock when the system told us to were able to keep all their money (and even book a small profit). But those who invested with the "hope" mindset are still waiting... and have likely given up all hope as their investment is pretty much worthless:
Here's another more recent example with semiconductor firm Ultra Clean Holdings (Nasdaq: UCTT ).
Think about that for a second. With the Maximum Profit system, a $10,000 investment in UCTT turned into $15,224 in only 185 days. That's a 103% annualized return.
Yet, those investors who didn't follow the system's rules -- or worse yet, didn't have any sort of rules in place at all -- got absolutely crushed.
Imagine the mindset you would have had with this stock if it weren't for any sort of concrete rules. Be honest. When the stock started to show some weakness, it would have been very easy to think to yourself "It's OK, I'll hold on until shares are trading for north of $30 again." If that would have been you, then you would have not only seen all of your gains evaporate, but a $10,000 investment would have shrunk to a measly $6,839.
This Device Tells Death To WaitYou know all those promises about how one day scientists will eradicate disease... and how we'll all live to be 120 and play golf every day? It looks like this is actually going to happen after all, thanks to a disease-killing tool that's faster, cheaper and far more accurate than anything tried before. Come see why I think this is such a big deal .
Look, I know I probably sound like a broken record, but it's so imperative that you follow a clearly defined set of rules for buying and (especially) selling stocks. Don't wait until you already own a stock -- by that point, your emotions could easily cloud your judgement.
It's better to book gains or cut losses short than end up with a portfolio of hope -- that is, a portfolio of "I hope to get back to even someday."
You can always get back into a stock once the dust settles. Or better yet, move on to a better opportunity.
P.S. Despite the uneasiness in the market, my system has still identified a handful of stocks that are poised to rally. In fact, we just identified five new buys to add to the portfolio. To learn how to get the names of these picks -- as well as learn more about how Maximum Profit works, go here .
- Do Investors Need Stop Losses?
- 5 Fast-Growing Mid-Cap Stocks With No Long-Term Debt
- 5 Things To Expect After October's Stock Plunge
© Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved.