By: Mark Crisp
I get as bit tired of all the non-sense I hear about “responsible investing.” We are told by bankers, financial gurus, planners, friends, e.t.c. to “Diversify” “invest in blue Chip companies,” “Do not try to get rich quick.” “you can’t beat the market.” Be happy with 15% returns. What a joke.
I am personally up almost 200% this year…. I am hoping with one final push on certain stocks I can smash the 200% maybe even 300% R.O.I. this year. I have made quite a few triple digit returns as well throughout my years. Granted I have also had flat years (2001,2002 there was little to be made) But I am telling you now you should be making 100%+ in the RIGHT stock market conditions.This is why most people are not making these returns:
1) You Invest in Blue Chip Stocks:
Blue Chips are yesterday’s huge momentum growth stocks. It’s too late. They had their day in the sun many years ago and you will not see 100%+ yearly moves on these stocks any longer. Blue Chip stocks are fine for parking tons on money into and making 10% p.a. Is this what you want? Then get out!2) You Own Too Many Stocks At One Time.
Diversification is a sure way to poor results. I have seen professionals recommend you invest in up to 40+ stocks at one time. You may as well put your money in an index fund as that’s about you are going to mirror. It’s been proven if you hold more then 8 stocks you are not going to out-perform the averages. In every stock market cycle there are a small handful of stocks that go on to make 500%+ gains….they are few and far between. These are the ones you should be focusing on. Want to make huge gains? Invest in less than 4 stocks at one time.
3) You Do Everything Right. You Find a GREAT Momentum Growth Stock, Then You Get Out Too Fast!
Time and time again I hear things like “I made a quick 20% and cashed out..I’ll get back in on the dip.” “You can’t go broke taking a profit.” You know it’s plain poor trading to take a 20% profit on a stock that then goes on to make 500%. Isn’t it? How can you ever make a huge killing (500%+ sometimes even 1,000%+) when you keep cashing out with small useless profits every time your stock goes up a bit? Be prepared to give back a good % of profits in the hope you go onto make huge gains. Close your ears and follow the charts. EVERYONE will want to talk you out of your huge winner way before time. Yes there is money to be made in short term trading. But it’s much harder and you actually make bigger % gains staying in longer…so why do it?
4) You just Can’t Help Listening to Tips:
EVERY HUGE winner I HAVE ever invested in…be it QCOM, TASR, HANS, CROX seems to drag all these cockroachs out from the woodwork who love nothing better than to try and talk people out. They’ll give reason upon reason why this “bloated pig must fall off a cliff.” And if you can’t smile at these people you MIGHT just take them seriously. The fact is huge winners do look “over bought” to people who have not done the homework we have done. They will correct 20%+ and shake out the weak before they climb again. And ONE DAY they will end their glorious run. But let the price tell you this. Not some college kid trying to bait you into a poor decision. Best never to discuss your open positions with anyone…Keep quiet and count your money :-)Sincerely
Mark Crisp http://www.crispstocks.com
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