Show Me the Money

In the meantime, we’ll ride rolling waves of liquidity and hope in certain sectors, and exit just after they crest. Once again, investors who try to buy and hold through it all will suffer.

My advisory service, Trader’s Advantage, is designed specifically for markets like this.

There are a few areas I’m paying close attention to right now for our next round of profits.

Cyclicals.

I expect to see a rotational market environment for some time. That means we want to look at beaten-down cyclicals, such as energy, industrials, technology, and select consumer stocks. Some of the best trading opportunities I see are in those areas right now.

Commodities.

I am finding some great commodity plays. The comeback here is driven largely by the most important economic force on the planet–China.

China has suffered a hit right along with the rest of us. To recover, it is stimulating its economy the old-fashioned way with a massive infrastructure program. Roads, dams, buildings… it is a massive public works program that will devour natural resources—something China is very short on.

If you join me, you’ll get my latest recommendations in base metals, mining companies, equipment manufacturers, agriculture companies and more.

Emerging markets.

For years, investors have hoped that emerging markets such as Brazil, South Korea, Chile and Malaysia would be able to decouple their economies and markets from ours. We saw last year that that wasn’t the case as those countries suffered along with the rest of us.

But this time might be different. Many of these countries have banking and investing infrastructure that is actually more advanced in some ways than ours. And we are seeing positive signs of a turnaround.
I’ll be keeping my Trader’s Advantage readers alerted to how we are going to profit from all three of these areas. Get my latest updates, including breaking email alerts, when you accept a 30-day trial. Click here for details.

7 Most Common Mistakes
Investors Are Making Today

In this confusing and turbulent market, many investors are getting tripped up by some costly mistakes. Here are seven common and incredibly costly mistakes investors are making today that I want you to be sure you avoid.

Mistake #1
No Position Is a Position

Not being clear about the overall direction of the market is a cardinal sin right now. Stand in the middle of the road, and you will get run over—from both directions.

Cash says: “It’s a bear market, I guess.” If you have a bullish outlook, you need to be seriously long—and stay that way until your outlook changes.

If you have a bearish outlook, get the hell out or go seriously short.

I guarantee that sitting on the fence will dent your tender parts. And I promise that if you join me at Trader’s Advantage, you will wake up every day knowing which side of the fence we’ll be making money on.

Mistake #2
Buying Weakness

Never buy low, sell high. This whole “you liked it at $15, you’ll love it at $5” shtick is utter nonsense. If you doubt me, call up a chart of AIG… or GM.

Thank you, General Electric! Our GE call options just handed us a 114% profit.

Indeed, the Trader’s Advantage subscribers who acted most promptly should have been able to net 300% profit!

Not bad for 10 days!

We got into GE at the end of April when the stock stood at around $12. Both sides of GE’s business—the industrial and the financial—had been massively oversold, and the climate for both businesses was improving.

We can win by buying high and selling higher, and shorting low and covering lower.

Survivors are like mercenary soldiers who volunteer for duties on the winning side. So if you see strength—rising stock prices—sign up!

Think this way every day. Do more of what’s working and less of what isn’t. Your top priority is the trade that’s working best. Too many people lose money trying to “fix” problem investments. Of course, as you know, not every trade is a winner. But we have managed to limit losses in losing trades to less than 8% on average in each trade because I am committed to correcting errors as quickly as possible and refuse to sugarcoat losses or sweep them under the rug.

Problems are for ditching. Successes are for nurturing.