The Concept of “Buying High”

By putting a number of factors into their proper context, the idea of “buying high” is a winning investment strategy.

As originally published at Total Wealth
Don’t Give Up 260% Gains Because of This Market Myth
By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

Amazon, Apple, Cisco, Barnes & Noble, and hundreds of other companies are at fresh 52-week highs, leading many investors to question the wisdom of putting more money to work.

Yet that’s exactly what you should be doing.

I know it seems counter-intuitive – especially if you believe in buy low and sell high like I do – but here’s the thing…

…the markets are always making new highs.

It’s how you deal with them and how you pick the companies with the potential to go even higher that separates the winners from the losers.

I’m going to prove that to you right now.

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    Profit from a Seismic Shift in Capital

    Don’t believe the naysayers when it comes to the future of China’s economy. There is a vast difference when it comes to applying western economic metrics to a profoundly different economy in Asia.

    As originally published at Total Wealth
    Profit from This 2,000-Year Pattern with Two Unstoppable Trends
    By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

    What if I told you that a two-millennia old economic pattern is about to reassert itself – and you can profit from not one but two Unstoppable Trends by getting in today?

    Better yet, what if pundits were almost universally writing off what I am about to share with you, further clearing the way for savvy investors to enjoy the earliest windfalls and potentially the biggest gains, too?

    Much of the media and many of the mainstream investment houses are ignoring this country. The IMF and Morgan Stanley are both forecasting dismal GDP growth in the next few years. Just last month, Bloomberg labeled its markets as being in an “amateur hour” phase.

    So why is it that the elite are piling in?

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      Keith on Varney & Co: Disappearing Middle Class

      Charles Payne presented more evidence that government, with its bailouts and QE, are working at the expense of the American people rather than for their benefit. Plus, we discussed what to look out for in the upcoming retail earnings reports from Target, Lowe’s and Home Depot.

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        Nearly Risk Free Investing

        There’s no such thing as an investment that’s truly “risk-free.” But here’s the next best thing.

        As originally published at Total Wealth
        Make Any Investment Risk “Free” in One Move
        By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

        Readers ask me all the time if I can recommend an investment that is 100% risk free.

        I can’t do that. There is no such thing.

        (If anyone tries to tell you otherwise, take your money and run!)

        That said, there is one way you can make any investment risk “free” under the right set of circumstances, by using one of my favorite Total Wealth tactics: the free trade.

        We’ve talked about this before, and many of you got a chance to put it into practice with our Human Augmentation target, Ekso Bionics Holdings Inc. (OTC:EKSO) – simultaneously doing three things in the process: capturing profits of at least 100%, paying for your initial investment and reducing the risk on your remaining position to almost nothing.

        Now, with the markets at new record highs and Greece machinations threatening to cause major corrections in world markets, I want to revisit that tactic. That’s because many investors are sitting on solid profits and, in doing so, unwittingly taking on a lot more risk than they should.

        Do this instead…

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          How To Play The Greek “Tragedy”

          With little time to go before Greece runs out of money there a few scenarios that could play themselves out. Here’s how to protect and benefit from this period of chaos.

          As originally published at Total Wealth
          You’ve Got 13 Days to Trade Greece Profitably
          By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

          I’m getting dozens of questions about Greece right now and what it means for your money.

          That’s fantastic for two reasons.

          First, it means you’re totally on point and thinking clearly in the pursuit of profits.

          Second, it’s a sign that you’re already fully engaged in the Total Wealth strategy and one of our core Total Wealth principles – namely that there’s always opportunity in chaos, if you have the right tactics.

          Greece is the single most important thing happening in the markets right now. I know that the mainstream press is treating it as an afterthought and the temptation is to regard it as “over there.” But the financial markets have proven again and again that events taking place thousands of miles from our own shores clearly influence market behavior closer to home.

          I’m going to lay out three scenarios for what is about to happen and how it will affect you. Then I’m going to show you three trades you can make today.

          Don’t wait to make your move.

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            A Simple Method to Protect Your Wealth

            This is not the most glamorous tactic but it sure is effective as long as you have the wherewithal to stick to the plan.

            As originally published at Total Wealth
            This One Tool Made the Difference between Bankruptcy and $13 Million
            By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

            There’s an old joke that’s made its way around financial circles over the years. It goes something like this:

            An investment banker walks into a room where his cohorts are in a meeting. “I’ve got good news and bad news,” he announces. “The bad news is, we’ve just lost $100 million. The good news is, it wasn’t ours.” An associate raises his hand. “What was the bad news again?”

            It’s humor, but there’s more than a grain of truth to the story. Whether we’re talking about brokers, bankers, or even your most trusted financial advisor, you cannot rely on anyone else to care about your money and keep it safe.

            At the end of the day, the only thing standing between your portfolio and catastrophic loss is your own caution and proper risk management.

            I know it’s not the most exciting part of investing. But there’s zero doubt in my mind it is the most important.

            That’s why it’s the third part of my Total Wealth Strategy.

            And one tool called position sizing stands out above all others as the most powerful, and not just for cutting risk either, but for boosting your profits, too.

            To see what I mean, consider this anecdote from trading psychologist Dr. Van Tharp:

            “We’ve done many simulated games in which everyone gets the same trades. At the end of the simulation, 100 different people will have 100 different final equities. And after 50 trades, we’ve seen final equities that range from bankrupt to $13 million – yet everyone started with $100,000, and they all got the same trades. Position sizing and individual psychology were the only two factors involved – which shows just how important position sizing really is.”

            Here’s how I recommend you start using it right now…

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