Stop Your Crying, You Should be Buying

TomAndersonIs the market heading up, down or sideways? Nobody knows for sure but that doesn’t mean you have to worry.

I’ll share five timeless tips that will let you profit no matter what way the current market turns.

1. Don’t let market volatility distract you from the fundamentals.

Investing in volatile markets can be a frustrating endeavor. It can seem like the companies with the most opportunity are the hardest hit and the more work you do, the more frustration you encounter. You aren’t crazy, that’s the environment we have been investing in since mid-March.

The stocks with the greatest opportunities have the most interest and which makes them often have the highest valuations. This also means that they can get hit hardest when the market re-prices risk.

2. Stop your crying, you should be buying.

This volatility can be a gift if the market has left you behind.  Stocks that may have been overvalued four weeks ago have been re-priced and now better discount the near term risks.  Time and time again, studies have proved that people can’t consistently time a turn in the overall market, so you have to take the good with the bad and remain disciplined.

Remember, the trader’s saying, “Stop your crying, you should be buying.” It can be difficult to maintain discipline when the market is moving against you but if you focus on growth stocks with a large opportunity, even when the overall economy slows, these companies will outperform. The key here is something called dollar cost averaging.

3. Dollar cost average, don’t trade, if the market is moving against you.

Dollar cost averaging is investing a portion of your money consistently even when the market is going against you. If you buy shares of a stock at $40 one week, $30 the next and $25 the month after, your average price would be just under $32. Maybe you could have been lucky and caught the market at the bottom, but things also look darkest at that point and you might miss the opportunity.

Even when the economy and broad market indexes are growing slowly or declining, there are companies that will grow because they are taking share from incumbents or because they introduced new technology.

4. Focus on small companies capitalizing on stable demand.

Small companies with proven technology and are building a business structure have the most opportunity for explosive growth as well as being acquired. Remember, competitors can purchase the companies outright if it gets cheap enough and many large companies like Oracle and HP grow this way.

Essentially, they are outsourcing their Research and Development by letting small companies prove their ideas in the market. The larger firm may pay up for the acquisition but it doesn’t take on the risk of failure.

4. You can invest in this environment, follow these steps

A) Lock in on an industry that sees stable demand

B) Once you lock in on industry only buy the best
C) Sell only if the fundamental outlook changes. Prices rise and fall but if you have selected the right companies, prices will rise over time.

Sectors we are locking in on are Pharmaceuticals, Data Security, Emerging Telecom and Mobile Device Components. Each of these sectors will see demand even if there is a downturn. Remember to focus on the fundamentals. We have been able to identify strong companies in each of these sectors.

If you are interested in learning more, feel free to read the other free reports on our website. If you want the actual Tech Stock Jackpot investments sent to you, check your email to for an invitation to subscribe to our full stock-picking service.  We tell you what investments we believe have the potential to more than double, when to jump on board and how much to pay for a company.

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