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A Solution to
the Most Common Problem Facing Investors Today
Dear
Fellow Investor,
Today,
I’m pleased to offer a service that will help you protect your
portfolio from big losses… help you make more money from your
investments…
And
solve the most common problem facing investors today:
How to
minimize risk and maximize gains.
Using
the “trailing stop” strategy advocated by many of the world’s most
successful investors is the easiest and most effective way to do
this. This one simple strategy will keep you in winning investments
longer, and get you out of losing investments sooner (if you're not
familiar with this strategy, I'll tell you all about it in just a
minute).
The
problem is, using trailing stops correctly means many hours of
checking in on your investments. And, if you’re like me, you simply
don’t have the time (or the inclination) to do this every day.
Well…
today I’m going to show you the easiest way I know of to put the
trailing stop strategy to work for you.
Instead
of spending precious free time scanning daily closing prices and
recalculating your portfolio, I’m going to show you a service that
will always keep you informed of what’s happening with your money…
whether you’re at work, home, or even on vacation…
Best of
all, this service is a bargain – it costs little more than $1 per
week.
Let me
tell you more about it…
The Golden Rule of Trading
I’m
sure you’ve heard it before: The first law of successful investing
is…
Don’t lose money.
In
other words, you’ve got to cut your losers short – before they do
big damage to your portfolio.
To do
that, you have to determine – before you actually lose any money –
how much you are willing to let any investment drop before you sell…
10%, 20%, 25%… it’s up to you.
If any
investment falls by that much, you sell the next day. No ifs,
ands, or buts.
The
easiest way to do this is to use a “trailing stop.”
Say you
buy a stock for $10. If you use a 20% trailing stop, you would sell
that stock if it ever closed below $8 – 20% below $10.
However, if the stock went up from $10 to $20, you would move
your trailing stop up to $16 – 20% below the new closing price of
$20.
If the
stock closes below $16, you sell – and make a nice 60% profit. Now
it doesn’t matter if the stock falls to $10… or even $8 – because
you’ve already taken your money off the table.
But if
the stock keeps moving up, so does your trailing stop.
You let your winners run.
Trailing stops work because not every investment you make is
going to be a winner. Even the best investors in the world make
losing picks.
The
real difference between those who consistently make money in the
markets, and those who consistently lose, is that the successful
investors make their losers very small… and let their winners run as
long as possible.
David
Ryan, for example, entered the U.S. Investing Championship three
times. He finished 2nd one year, and took 1st place the other two
times. His three year return was a remarkable 1,379%.
Amazingly, Ryan picks winners only about 50% of the time. He
gets such high returns because he cuts the losers quickly. Ryan
describes his strategy this way: “I make money on the few stocks a
year that double and triple in price. The profits in those trades
easily make up for all the small losers.”
No
wonder David calls trailing stops the “golden rule of
trading.”
Michael
Marcus is another one of the most famous traders in the world. He
follows a similar stop strategy. Marcus is famous for multiplying
his portfolio 2,500-fold over a ten-year period.
Paul
Tudor Jones put together five consecutive years of triple-digit
gains as a trader, and later helped investors in his fund earn a
17-times return in just four years. Jones used trailing stops too.
The
bottom line is, you’ve got to control your losses. Not doing so is
the single biggest mistake amateur traders make by far. In the words
of Perry Kaufman, one of the leading authorities in trading system
design, “Amateurs first look at profits while professionals first
look at risk.” Using a trailing stop is the most effective tool I
know of for easily and effectively investing like the
pros.
Now
here’s the catch…
The Problem with Trailing Stops
The
only problem with trailing stops is that they require a lot of work.
You
have to pay close attention to the markets. And you have to do lots
of different calculations.
Remember, when a stock goes up, your trailing stop goes up
too. And if a stock goes down, you have to make sure it doesn’t drop
below your trailing stop price.
Talk
about lots of free time wasted in front of the computer. Who wants
to check closing prices and recalculate positions every
day?
But
that’s the kind of discipline you need to make the trailing stop
strategy – the most effective way to consistently beat the markets –
work for you.
That
is, until now…
How to Make More and Lose Less on Every
Investment You Make
It was
several years ago, at an investors conference in Baltimore, Maryland
that I first met Dr. Steve Sjuggerud, editor of the monthly
investment advisory True Wealth.
He’s
one of the few market analysts that I follow religiously (and with
great success)… and a guy whose whole investing philosophy is
based around the strict use of trailing stops.
I
approached him after his presentation and cut right to the
chase:
Sticking to the trailing stop strategy every day is hard
work. Do you know of any service that will help me do
this?
I was
shocked when he told me: “No, I’m afraid not.”
I was
even more shocked to learn that I wasn’t the first guy that had
asked him about it. Dr. Sjuggerud said it’s the most common question
he gets… and he wished he could give a good answer.
That’s
when I realized that there were lots of investors out there just
like me – guys who understood the true value of the trailing stop
strategy but simply didn’t have the time to keep up with it every
day.
I told
Dr. Sjuggerud: Well, maybe I can help.
My
name, by the way, is Dr. Richard M. Smith. And I’ve used my PhD in
mathematics to start up a number of successful web-based business,
all designed around one idea:
Providing simple solutions to complex problems.
For
example, one of my firms, StrataDat, is a primary consultant to one
of the biggest companies in the pharmaceutical industry. It’s our
job to take enormous raw data sets on global pharmaceuticals usage,
and produce user-friendly presentations – presentations that someone
without an advanced degree in bio-chemistry can understand.
When
the electric utilities in New York State were facing deregulation,
my company helped stabilize (and keep profitable) one of the biggest
firms in the region – increasing manpower by a factor of ten…
without adding any additional men.
I
figured if I could combine my passion for this kind of
problem-solving with my hobby of creating investment websites (I’ve
developed two sites for stock- and options-traders so far)… maybe I
could find a way to finally make trailing stops work for the average
investor.
So I
set to work.
And
after two years of research and development, I came up with a
web-based system I call TradeStops.
Here’s
how TradeStops works:
- You
go the TradeStops website.
- You
enter the stocks you own, when you bought them, and how much you
paid per share.
- Then, you decide what your trailing stop will be: 10%, 20%,
25%... it’s up to you.
That’s
it.
The Best… “Hand’s down.”
A test version of TradeStops was recently made
available to market analysts, professional stock traders
and financial journalists. Here’s what just a few of
them had to say about the experience:
“I had the privilege of meeting Dr. Smith
in New Orleans last year at an international investors’
conference. At the conference, he showed me a very early
beta version of TradeStops, and I was very impressed by
its long list of promised features. I have followed the
development of this online trading utility ever since,
and have had the opportunity to test it extensively in
nearly all of its phases of development. TradeStops
actually keeps track of when you should sell… and will
notify you by email or by a text message on your mobile
device. The TradeStops’ concept is fairly simple,
but the execution is amazing.”
--Chester Weeks, Market Analyst
“This is hands down the most useful,
time-saving portfolio service I've tried so far.”
--Robb Michemmel, Research Assistant
"As someone who is terrible at math – and
also a semi-regular stock investor – TradeStops is
probably the best single investment resource site I use
right now. Instead of having to adjust my stops by hand
like I used to do, I just set up my e-mail alerts in
TradeStops... so I know immediately when one of my
stocks has hit my exit price. I never check the stocks I
own every day anyway, so this site has really made my
investing life a heck of a lot
easier."
Nate Hill, Financial Journalist,
Investor | |
TradeStops does the rest. All you have to remember is the
website and your password.
Twenty-four hours a day, seven days a week, TradeStops
monitors your portfolio and constantly recalculates your trailing
stops based on each day’s closing prices.
If any
one of your investments closes below your trailing stop, TradeStops
will alert you via e-mail, or send a text message to your cell phone
or pager.
You’ll
know right away that it’s time to sell your position.
Of
course, if your stocks keep going up, TradeStops will move your
trailing stop for you.
In
short, TradeStops makes sure:
- You
never lose more on an investment than you’re willing to lose, and
- You
never give back all the gains you’ve made simply because you
weren’t checking your portfolio every day.
TradeStops will also keep track of stock splits and dividend
payments automatically… and adjust your trailing stops accordingly
(no other service I know of will do this for you).
If you
want to see how your investments are doing, you can check up on them
any time of day, from anywhere in the world. All you need is a
computer with Internet access.
You
don’t even need a high-speed cable or DSL connection… simple dial-up
will do.
Best of
all, for a limited time – if you sign up for a TradeStops account
through this special offer – you can get a full year of service at
our special introductory rate of just $69.95.
That’s a little more than $1 per week.
A good
calculator would cost you more… and you’d still have to do all the
work yourself.
This is a special price reserved exclusively for
investors who sign up through this special offer – and
you’re guaranteed this price for as long as you have a
TradeStops account if you agree to our automatic billing option.
(Your credit card will be charged $69.95 when you set up an account,
and we’ll automatically renew your TradeStops membership once a year
for $69.95, until you decide the service is no longer right for
you.)
A
regular account costs $79.95 a year (still a bargain).
But I
must warn you: I can’t guarantee these prices for long.
A
service like this is in high demand. I honestly don’t know of any
other like it. And when it becomes available to the public, it could
easily command a much higher price.
If you
don’t lock in the charter membership price of $69.95 (auto-charge)
or $79.95 (regular), I can’t guarantee you’ll get the same rate
later.
You can
sign up on-line today at our secure site:
https://www.tradestops.com/affiliate.asp?id=sr001&page=subscribe_now
If
you’d like to read more about the TradeStops service before you
decide, check out my information page at https://www.tradestops.com/affiliate.asp?id=sr001
Best
Regards,
Dr.
Richard M. Smith Founder,
TradeStops.com
P.S.
Also available through the TradeStops website is a service called
TradeStops Complete. TradeStops Complete offers all
the benefits of our TradeStops only package… with a number of added
benefits. For example, you can configure a variety of different
alerts besides just trailing stops. You can have TradeStops alert
you to review your positions every 30 days or whenever one of your
stocks closes above a certain price. You can also set up
dollar-based trailing stops, fixed percentage gains and losses,
alerts on a specific date, volume and moving average based alerts and more. Basically, you get all the
benefits of a TradeStops account, with the ability to further
customize the system to meet your more specific needs.
For all
the extra power of TradeStops Complete, you’ll pay just $30 more per
year.
To sign
up now go to: https://www.tradestops.com/affiliate.asp?id=sr001&page=subscribe_now |