My Midas Wave service’s portfolio is doing exceptionally well–It’s beating the S&P 500 by a factor of 3! I’m often asked how and why I add stocks to my Midas Wave Portfolio, so here’s a little insight into my system…
Without revealing my proprietary formula, which drives my buy and sell decisions, I can tell you I look for 3 similar traits that nearly every major monster stock in history has shared. Here they are:
How I Do It: Look For Leading Stocks
I have reviewed every single major economic and market cycle going back to the 3rd century. After nearly a decade of studying things no one else wants to study, my research showed me that nearly all monster stocks exhibit similar characteristics. The three most common are:
1. They Have Strong Financials (Strong fundamentals)
2. They Are Already Leading Stocks (Strong technical indicators)
3. They Have a Compelling Story (A new product that is in strong demand)
My Magic Formula
I believe in full transparency with my readers. That’s why I wrote this note. I strongly believe anyone can beat the stock market, provided they have access to the right information. That is the exact reason why I agreed to write the Midas Wave Alert service when Jim Samson asked me.
Without giving away my trade secrets, those three traits are exactly what I look for to find the best stocks. Put simply, that is my magic formula.
First, the company should already be enjoying strong financials, which means sales and earnings growth statistics are very good. This is the basis to any well-built company.
Second, the stock should already be a leading stock, which means that the technicals are solid. The right stock will stand out from the others within its market sector based on several factors.
Lastly, I look for stocks that have a new product that is in demand–ideally it will change the way people live their lives (ex: Apple creating iTunes, iPad, iPhone, etc.).
The last component is the most vital because it is terribly important to separate how a company is acting compared to how the stock is acting. You can have a lousy company but a great stock, and vice versa.
Since we all make and lose money based on how much we pay for the stock versus how much we sell it for, I pay a lot more attention to how the stock is acting. My bottom line depends on it. If you want this done for you, check out the Midas Wave Alerts service.