It seems more important right now than ever to let you all know that I still stand by the phrase that is the cornerstone of my investing philosophy; the road to wealth is paved with tech.
With some of the choppy moves we’ve seen across the broader market recently, things might look a bit uncertain, with the broader market falling over 3% between February 24 to 26.
But the thing is, the tech sector is the growth engine of the modern economy generating the new wealth that leads to economic expansion. And, if you want to capture your own share of that new wealth, investing in the high-tech sector is the way to do it.
To see what I mean, just look at things over a longer period. Since the market turnaround on March 16, the broader S&P 500 is up by around 70%, while the iShares Expanded Tech Sector ETF (IGM) has outdone it with gains of almost 93%.
With that in mind, today I want to share with you three tools that can help you ride out the short-term uncertainty, and make it to the outstanding gains that lie in the future, no matter what twists and turns the market might make tomorrow…
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.
But another way to play a choppy market, driven by uncertainty, is to look into brand new types of assets, that don’t play by old-fashioned rules.
And that’s exactly what you get in the cryptocurrency sector. The leading cryptocurrency, Bitcoin, is already up by a staggering 66% since only the start of 2021 just two months ago.
And now, the next step in the explosive growth of cryptocurrency will be “specific use coins,” special, purpose-built cryptocurrencies that could have the potential to multiply your money 1,000% by 2026. You can click here to see exactly how they can do it.
Cheers and good investing,
Michael A. Robinson