ISA Trend Investing - the Key to an Index-Beating 67.8% Gain
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, SIPPS, Investing, Stock Market, Investment Fund, Wealth Building on 9th September, 2009.
Tags: gain, index beating, isa trend investing, yahoo finance.
How Investing With ISAs Can Help You Achieve Index Beating Gains
If like me you are a regular of Yahoo Finance, you may have seen a recent press release there that spoke about my recent 10 month tax-free gain of 67.8% using ISA Trend Investing.
When people hear about such a decent gain in a relatively short amount of time, the first thing they want to know is how exactly I did it so that they can do the same.
Over the next few weeks, I’m going to be explaining exactly how to make such a gain so that in the right market environments, you’ll also be able to make similar – if not even better gains.
ISA Trend Investing - a Proven Method of Investing
To be successful in the stock market over the long-term, you need to follow a proven method of investing. For me, the proven method has to be ISA Trend Investing.
With ISA Trend Investing you trade investment funds (not stocks) using an ISA, a SIPP or both, to achieve tax-free index beating returns.
You simply profit in up markets and protect in down markets; helping you to retire liquid rich.
7 Key Differences
When compared to normal ISA Investing, the 7 key differences are:
1. Instead of simply buying and holding, you are active. By understanding the overall trend or direction of the market, you invest into the market when the confirmation of the trend is up, and switch out of the market when the confirmation of the trend is down. This is the most important element in ISA Trend Investing.
This first difference is the one that will lead you to success if you get it right or failure if you get it wrong. Even if you find the best investment fund on the planet, if your trend reading is wrong, meaning your timing is wrong, you will fail.
2. You use a Stocks and Shares ISA instead of a Cash ISA.
3. When the trend is confirmed up, you look to buy the highest quality Investment Funds. You search for funds that can be purchased within a Stocks and Shares ISA. You do not buy individual stocks as they carry too much risk. You do not buy index tracker funds because it is possible to “beat” the indexes if you know what you are doing. You buy your fund or funds only when the market is healthy (uptrend). When the market is unhealthy (downtrend), you remain in a cash based fund.
4. When the market is healthy you time your buying of the fund or funds that you have selected. You only buy your fund or funds at the time where there is the maximum probability of success. To do this, you use technical analysis or charts.
5. You time your exits. When the market’s trend is in a confirmed downtrend, instead of selling and cashing in your ISA, you switch. This helps you to move out of the downtrend so that you are completely out of the market. This means your cash is now placed or “parked” in a Stocks and Shares cash based fund. You do this as soon as the market confirms its downtrend meaning the market is now unhealthy and unsafe to invest. This helps you to bank profits and protect and preserve your capital whilst the market is falling.
6. Because you can read the trend of the market, and pick the highest quality investment funds, it allows you to set yourself aggressive performance targets. You aim to beat the powerful US Nasdaq Composite. (The Nasdaq is capable of 24.5% annual returns over the long-term.)
7. You do not use an adviser. You become your own adviser and make your trades on a “smart” investing platform with virtually zero costs. By being your own adviser, you save on charges, commissions and initial set up fees. This seriously helps boost your overall compounded returns. And if you know what you are doing, you get much better results than you would if you were with an adviser.
With this method of investing with ISAs you also have the option of:
1) “Shadow” Investing successful ISA Trend Investors. This allows you to get exactly the same returns as they are getting and in a time friendly way.
2) SIPP Trend Investing. A SIPP (Self Invested Personal Pension) can be run parallel with your ISA Trend Investing. Whichever investment fund you buy with your ISA, you buy the same fund with your SIPP. That means if you get a 20% annual return on your ISA, you get a 20% annual return on your SIPP.
Next time I will be sharing with you the 3 simple steps to ISA trend Investing and how they can help you to achieve index beating returns. In the mean time if you have any questions regarding how ISA trend Investing can make you rich then please contact a member of my team for a chat. As always you have my word there will be no sales, no jargon, just the facts.
Your friend,
Stephen Sutherland
The UK’s Leading Authority in ISA Trend Investing and Author of Liquid Millionaire
Please Note: As always, let me remind you that I am not a financial adviser and therefore not authorised to give advice on what investments to buy or sell.
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