Right now, seeing what’s going on in the market can make your head spin, but don’t’ worry, because it’s nothing that Strategic Tech Investor can’t handle.
Whenever I can, I like to point out just how important it is to avoid getting swept up in the big media hype that can push the market back and forth on temporary headlines. In fact, it’s my second rule of tech investing, “separate the signal from the noise.”
And wow, is that rule ever coming in handy right now, because we’re seeing headlines coming out now that could push the market any which way.
Let’s start with some good news. So far, three companies, Pfizer Inc. (PFE), Moderna Inc. (MRNA), and AstraZeneca PLC (AZN), have all announced this month that their COVID-19 vaccine candidates are demonstrating 90% efficacy rates in testing. However, it’s still unclear how long it will be until an effective vaccine is widely publicly available.
Not only that, but we are currently in a period of limbo between the Trump and Biden administrations, and the question of a new stimulus package isn’t settled.
We’re also seeing that state-level officials, like Governors Larry Hogan of Maryland and Kim Reynolds of Iowa, have announced new restrictions, with the possibility of more on the way.
With so much news, positive and negative, flooding onto the airwaves, it’s impossible to say for sure what will happen next. Luckily for us, it’s not going to matter.
Here at Strategic Tech Investor, we work towards maximum profits no matter how the market behaves, so today, I’m going to be showing you my three favorite tricks for cashing in during unstable times in the market just like this one…
Choppy Market Tool No. 1: The Cowboy Split
I’m shocked more professional investors don’t know about this powerful moneymaking tool. But it’s one we use here all the time.
Simply stated, the Cowboy Split is a staggered-entry system. You take a position in a stock at market – and then enter a “lowball limit” order to buy more if a discount comes your way.
In general, I recommend employing a 15% to 20% discount from your entry price as a second buy point. Here’s how it works…
You acquire 50% of your intended stake of XYZ Tech Corp. at a price of $50. In this case, should the market trigger your “lowball limit” order, you would automatically buy a second 50% stake at $40 a share, for an average price of $45.
Now assume XYZ rallies all the way to $60. You would then have a 16.6% appreciation on your original shares. But it’s that second stake that really juices your profits.
See, that second half’s gains are double those of your first buy. This way, you end up with overall gains of 25%, or roughly 50% more than had you just bought your full stake at $50.
Choppy Market Tool No. 2: The Free Trade
Whenever a stock doubles in value, take a free trade and lock in gains. That’s a sell order for half of your stake. Doing so means you have all your original capital back and are then playing on the house’s money.
It’s a powerful way to protect profits against a choppy market with two side benefits. First, you can end up owning a suite of stocks for free. And second, you stay in the position to reap any new upside.
But this tool becomes even more effective at securing profits when you combine it with my third and final choppy market tool. By using both of them together, you can effectively guarantee massive profits against sudden market moves.
Choppy Market Tool No. 3: The Autopilot Profit System
Whenever possible, set yourself up so that you exit a position with specific gains no matter what happens.
That’s where the “Autopilot Profit System” comes in handy. It’s a unique way of protecting profits with a combination of taking gains and using trailing stops.
It’s a great way to take some money off the table if you want to protect gains before a free trade would kick in. The tool works like this…
Let’s say you sold a portion of XYZ Tech when it was up 30%. Now, you can afford to see if the stock still has more upside while at the same time protecting your profits against any reversal.
In this case, you could set your stop at your original entry point and walk away with combined gains of 15%. Or you can set the trailing stop above your entry price to lock in more money.
The beauty of the system is that you set up your minimum profit figure in advance. After that, there’s no need to worry about what happens, because the Autopilot System is protecting your hard-won gains.
Like I mentioned above, this technique pairs excellently with the free trade. You can set a 50% trailing stop on the second half so that you walk away with combined gains of 75% no matter what happens.
You can see that by using our Choppy Market Tools you can keep on investing in winning tech stocks – even in this rocky market – and know that we’re prepared for anything the world throws at us.
These techniques can be applied to any strong play, but in today’s market, unstoppable trends, are going to be generating the strongest opportunities of all. Of course, with so much uncertainty in the media, finding those trends is tougher than ever.
We can show you specifically which companies to invest in to make the absolute most of today’s trends, and which pitfalls to steer clear of in this uncertain market. Just click here to see our special research presentation.
P.S.: This Friday, November 27, we won’t be coming out with a new issue of Strategic Tech Investor. The markets will be closing early, and I’m expecting an extremely thin, low-volume day of trading. That being said, I’ll be keeping a close eye on the markets and breaking in about any developments that demand immediate action. In the meantime, I hope you have a happy and safe thanksgiving. I know for a fact that I’m thankful for your support as a reader as we chart a path together on the road to wealth, paved with tech.
Cheers and good investing,
Michael A. Robinson