3 unconventional ways to succeed in today’s financial markets

Good morning!

I’ve got a meeting to attend to this morning, so let’s change it up a bit with something I’ve been meaning to discuss for a while.

3 unconventional ways to improve your path to profits

If you’re not getting the results you want in today’s complicated financial markets, then today’s 5 with Fitz is for you.

👇 Here we go! 👇

Reuse your highest performers

This isn’t difficult.

1. You find your highest-performing investments
2. You figure out what made ‘em work
3. You buy more or reinvest in what you have, especially on down days

By doing this, you are automatically removing emotions from the equation because you are focusing on the elements that led to success. If you cannot answer the question why those choices led to success, you’ve got some homework to do!

Always focus on what Wall Street does, not what it says.

What happened yesterday with Microsoft is a great example of what I’m talking about. That’s why the fabulous Charles Payne asked me about my take during an appearance on his show. It’s a 3-minute conversation you won’t want to miss. (Watch)

Optimize to win rather than playing not to lose

For that to happen, you must make a mental shift. You’ve got to make a conscious decision that you’re going to play to win rather than playing not to lose. Most investors still cling desperately to outdated models and thinking but expect different results.

Here’s how you do it.

1. Think thematically, not by segment like everybody else. There are huge structural changes happening in our world right now. Anybody using diversification and outdated sector-based models will miss ‘em because they don’t own enough of the right stocks. As I noted yesterday, for instance, Microsoft’s 10-year total price return is still 952.8%, even after all the recent selling. The information technology sector as a whole has shed -27% over the same time frame, according to Finbox.
2. Buy the best, not the rest (this helps you focus on winners). There’s a big difference between MSFT and META, for example. While we’re on the subject, small caps are wonderful and have a role to play, but right now the big money is gaming ‘em. The way around that is to stick to the battles they have no interest in fighting because that’s where you have every possibility of winning over time!
3. Focus on “must haves,” not “nice to haves.” Research shows very clearly that the kinds of companies I’m talking about here—especially those paying dividends—tend to fall less, stabilize first, then come roaring back earlier to assume market leadership before the herd realizes sentiment has changed. That is happening NOW, by the way.

Bottoming is a process, not a light switch!

Use the right tactics

Tactics are one of the most underrated, underappreciated elements of success, especially lately. Picking great stocks isn’t enough. These days, “how” you buy is every bit as critical as “what” you buy.

For example...

1. If you’re worried prices could fall further… slow down your buying. There’s no rule that you have to be all or nothing. In fact, that’s counter-productive in market conditions like the present.
2. If you’re worried about volatility… use simple strategies to control risk BEFORE you buy not after the fact like most folks. Two of my favourites are Dollar Cost Averaging and Value Cost Averaging because both approaches can help remove emotion AND ensure the discipline needed to maximize returns.
3. If you’d like to buy at a discount… buy at a discount. Use LowBall orders to specify your discount to the penny. Or consider specialized tactics like Selling Cash-Secured Puts that help you get paid while you’re shopping. This removes Wall Street’s ability to game your emotions and force you into making predictably bad decisions.
4. Hedge using simple ETFs. You don’t need to use options unless you want to.

If you’ve never thought about the difference tactics can make, a) you’re not alone, and b) there are plenty of resources available today that I would have given my right arm to have back in the day when I started out.

Make an effort to learn!

Bottom Line

I’m biased as heck, but I believe we are building one of the sharpest investing and trading communities ever. My goal is super simple: to share what I know about the strategies and tactics that have helped successful investors and traders go from zero to millions, perhaps even billions of dollars.

Consider an upgrade to One Bar Ahead® if you like what you read and find my perspective helpful. You’ll be joining a worldwide community of super-fun, super-smart investors and traders who understand the importance of investing in optimism. I’d love to earn your trust, goodwill, and business, too. Upgrade to Paid

And that’s a wrap!

As always, let’s get out there and MAKE it a great day!

Keith 😊

PS: A correction… yesterday, I wrote that “MSFT’s one-year total price return is still 952.8% while the information technology sector as a whole has dropped -27% over the same time, according to Finbox.” It should be 10-year total price return. Doh 🤦