Turn Market Chaos Into Tech Stock Gold With These 3 Tactics
When we spoke back on April 20, I told you that I believe we are in the midst of a generational bull market.
I still believe that.
Of course, that’s good news for tech investors like you – but that doesn’t mean we won’t face challenges along the way.
The last few weeks are a good illustration of what I mean. Heck, this morning is a good illustration of what I mean.
We have clearly seen a return to choppy, news-driven markets.
Daily market gains and losses in excess of 1% are the norm as of late, and it’s hard to spot forward progress. After all, in the three months ending April 27, the S&P 500 had 30 losing sessions and 31 winning sessions.
Last Friday, we learned the economy grew a moderate 2.3% pace in the first quarter. The S&P ended the day flat, with advancers making up 44% of the trades and decliners 46%.
We’re basically dead even.
Clearly, what investors need are strategies – tactics – that can hand them big gains even when others are struggling.
That’s why today I’m showing you three such tools.
Our Chaos-Defeating System
No wonder the headlines are making Wall Street and Main Street investors alike feel confused.
The investigation into whether President Donald Trump colluded with Russians in the 2016 election is still churning. We’re also dealing with the fact that last week 10-year Treasuries had a 3% yield for the first time in four years, making many fear that funds will flow from stocks to bonds.
On the other hand, the current earnings season has been better than solid, as earnings for firms reporting thus far in the first quarter are 6.9% above forecasts.
And while the economy grew just 2.3% in the first quarter, spending on commercial construction, equipment, and software rose at a 6.1% rate.
That’s a strong backdrop for tech firms – and for technology investors.
The economy, markets, and politics will likely continue to generate noise in the year ahead. On any given day, we could see another round of strong buying or selling.
But we’re not worried. Fact is, it’s my job to help you make money on high-octane tech stocks no matter what the market throws our way.
Plus, we employ three tools in particular to turn all this chaos into money in our pockets.
Take a look…
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 my paid-up members use all the time – and one that I suggest you folks use.
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, say, $50. In this case, should the market trigger your “lowball limit” order, you would automatically buy a second 50% stake at $40 a share. This leaves you with a total average price of $45.
Now assume XYZ rallies all the way to $60. You would then have 16.6% appreciation on your original shares. But it’s the second stake that really juices your profits.
See, the second half’s gains are double those of your first buy. And by using the Cowboy Split, you end up with overall gains of 25%, or roughly 50% more than if you’d just bought your full stake for $50.
Choppy Market Tool No. 2: The Free Trade
Whenever a stock doubles in value, I hope you remember to take a Free Trade and lock in gains.
A Free Trade is basically a “Sell” order for half of your stake once it reaches 100% gains. Doing it this way means you get all your original capital back, and from that point on, you’ll be playing with the house’s money.
It’s a powerful way to protect profits even in the middle of a market storm.
And it has two side benefits…
You can end up owning a suite of stocks for free.
You stay in position to reap any new upside.
Here are two classic examples of just what I’m talking about. At my Radical Technology Profits premium trading service, 30% of the stocks we hold have doubled in value. As a result, we’ve made a bunch of Free Trades – and a bunch of money.
This tool got us off to a great start this year.
On Jan. 5, we took two Free Trades, one on a gene-editing biotech leader and the other on a tech firm that provides gear to the mobile sector.
These were not isolated events.
For instance, Radical Technology Profits readers bought shares of a cosmetic surgery tech firm back in December 2016. Just eight months later, they scored a 106% gain, triggering a Free Trade.
Their remaining stake is up 193%.
That’s the power of the Free Trade. (To find out how to join us at “Rad Tech” – and to start making Free Trades such as these like clockwork – just take a look here.)
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 a Choppy Market Tool that I call 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 works like this…
Let’s say you sold half of XYZ Tech Corp. 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 even more money.
The beauty of the system is that you set up your minimum profit figure in advance. Afterward, there’s no need to worry about what happens because the Autopilot Profit System is protecting your hard-won gains.
By using our Choppy Market Tools, you can keep on investing in winning tech stocks and know that you’re prepared for anything the markets throw at you.
And you won’t drive yourself nuts with worry on this Road to Wealth… Paved by Tech.
Of course, not all roads to wealth are paved by tech stocks.
In fact, one of my good friends here is BOYCOTTING STOCKS. After 36 years of making millions off of them, that says it all.
Why is he doing this? I think he’s bit crazy – but he tells me he just cracked the code to creating millions of dollars in new wealth without having to deal with a single, unreliable stock ever again. Don’t believe me – or him?