Editor's note: Successful investing over the long term can be difficult... Right now, the markets are chaotic. Fear is high. So in this kind of climate, keeping a level head is critical.
Editor's note: Successful investing over the long term can be difficult...
Right now, the markets are chaotic. Fear is high. So in this kind of climate, keeping a level head is critical.
That brings us to today's classic message from Chaikin Analytics founder Marc Chaikin...
Longtime readers might recognize this essay. We've previously published it a few times in the Chaikin PowerFeed over the years.
But in today's uncertain environment, Marc's message on a simple tool that the professional investors use to give themselves an edge in the long run is just as important as ever...
Pro Investors Do This... Amateurs Don't
By Marc Chaikin, founder, Chaikin Analytics
Investing isn't easy. Don't let anyone tell you otherwise.
Having access to the most powerful analytical tools available helps – a lot. Great investing requires great data and evidence-based analysis. But there's something more basic underneath that, too...
It determines, right from the outset, whether an investor will find long-term success in the markets. And it's frustratingly simple...
I'm talking about having a process.
Seriously, every successful investor has a process. None of these big shots just shoot from the hip.
Sure, on TV, these high-profile investors might come across as cavalier. But don't let that fool you... They all have a process. Having a repeatable process is simply the way to be successful on Wall Street.
I know, I know... this might sound painfully obvious. Or it might sound like a Yogi Berra truism. But I can't count the number of times I've talked to individual investors who have little to no process. It's shocking, really.
Ken Fisher says it's "too weird and mystical," and NPR dubs it "voodoo science." But Greg Diamond – who has identified 41 chances to double your money or better – says this obscure strategy is critical to making money from market volatility. As the U.S.-Iran conflict deepens, Greg's hosting a free event in which he'll show you how you can leverage this strategy in your trading account. Click here for more details.
Jeff Brown recommended Nvidia in 2016... But now, he believes Nvidia is going to trigger a massive crash on March 16 and send hundreds of popular stocks into freefall. On Thursday, March 12, he's revealing why he believes this crash is a "sure thing," which types of stocks are at the highest risk, the names of a bullish pick and a bearish pick, and much more. Plus, Jeff will reveal a solution unlike anything he has ever revealed before. Click here to register.
Most everyday investors have goals. And some even have a general workflow. Despite that, most of the folks I've come across just kind of "poke around for opportunities."
The truth about great investing is that it's tedious...
In fact, it's so tedious that most mom-and-pop investors simply can't keep up with it. I don't blame them. It's a monumental task.
Be honest...
Do you have a defined exit strategy for every stock you own? Is it written down? And is it more than just saying, "I'll take gains when it feels right"?
Even after you decide all of that, you need to deal with a flood of information for every stock in your portfolio. The world doesn't stop when you buy a stock.
What about earnings reports? Do you take those into account? How about insider activity or expert analyst ratings?
We've just scratched the surface. And I bet it already feels overwhelming.
Even if your investing strategy is technical in nature (meaning it's based on the price action of the stock instead of business fundamentals), you're still confronted with mountains of information.
Unless you love spreadsheets, it's probably too much. And most mom-and-pop investors end up making compromises. They rationalize "gut feeling" decision making.
That might work occasionally. But it's not a path to consistent success. Again, the foundation of reliable success on Wall Street is having a process...
This is why I developed the Power Gauge system.
As regular PowerFeed readers know, the Power Gauge crunches data on 20 individual factors. And it puts out clear and actionable recommendations based on those factors.
In other words... the Power Gauge has a process built into it.
Imagine that a friend turns you on to a small-cap stock. It's getting almost no attention from analysts. But the story he tells you about it sounds great...
You want to invest. And you're about to click "buy." But then, you notice the company's next earnings report is just a week or two away.
If you're like me, just thinking about taking a big hit on an earnings play makes your stomach turn. Your friend made the stock sound like a great opportunity. But you don't want to lose your shirt.
So... what's your process? How do you evaluate a situation like this?
Our Power Gauge system makes sure you have industry-leading quantitative tools at your side. You can enter the ticker and get an instant reading. This rating takes the company's earnings trend into account and will put you ahead of the crowd when making decisions.
You don't have to use the Power Gauge to succeed in investing. But I know where many individual investors suffer...
The issue isn't finding great ideas. Instead, the problem is having a process for owning them – and for knowing what to do as things change.
The Power Gauge solves that problem. But even if this tool isn't for you, make sure you have a process when investing.
Understand why you're buying. And know what to do if things change. Have a plan for when you'll sell and stick to it.
If you can do those things, you'll be a much more successful long-term investor.
Good investing,
Marc Chaikin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.96%
7
18
5
S&P 500
-1.31%
93
287
119
Nasdaq
-1.5%
18
54
28
Small Caps
-2.29%
411
1074
398
Bonds
-0.37%
— According to the Chaikin Power Bar, Small Cap stocks have become somewhat more Bullish than Large Cap stocks. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+1.16%
Communication
-0.5%
Information Technology
-1.06%
Financial
-1.67%
Utilities
-2.07%
Consumer Discretionary
-2.07%
Real Estate
-2.17%
Industrials
-4.06%
Health Care
-4.68%
Consumer Staples
-4.7%
Materials
-6.65%
* * * *
Industry Focus
Bank Services
7
85
8
Over the past 6 months, the Bank subsector (KBE) has underperformed the S&P 500 by -6.26%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #11 of 21 subsectors and has moved down 1 slot over the past week.
Indicative Stocks
CBU
Community Financial
WD
Walker & Dunlop, Inc
GBCI
Glacier Bancorp, Inc
* * * *
Top Movers
Gainers
CF
+4.51%
BA
+4.08%
KR
+3.55%
NOW
+3.29%
BR
+3.14%
Losers
TER
-10.65%
GLW
-8.5%
ODFL
-7.93%
BLK
-7.69%
LRCX
-7.15%
* * * *
Earnings Report
Earnings Surprises
No significant Earnings Surprises in the Russell 3000.
* * * *
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