ISA Trend Investing – How Timing Holds the Key to 80.6% Return
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, Investing, Stock Market, Investment Fund, Wealth Building on 23rd September, 2009.
Tags: gains, isa, isa trend investing, market direction, timing.
How to Get Your Timing Right with ISA Trend Investing
In my previous 3 part series of blogs I looked at how ISA Trend Investing and determining market direction have helped me make a gain of 67.8% over a recent ten month period.
I am now delighted to announce that over the past ten and three quarter months (from October 28th 2008 to September 19th 2009) I have seen a gain of 80.6% on my portfolio.
When I tell people about the kind of results I have been getting the first thing they want to know is how I did it. So today I will be sharing with you the importance of timing when it comes to market direction and how, if you get your timing right, you could make gains of 80.6% - or possibly even more.
How to Get on the Inside
Reading the market’s health gives you inside knowledge of future market direction and if the market’s health has become sickly, it tells you that if you stay invested, your investments have a high probability of dropping in value.
It is helpful to be aware that it’s impossible to time getting out at the very top of the market or getting in right at the very bottom. But what you can do, when you know what you are doing, is get in at the first or second floor of the elevator instead of the ground floor. And you can get out not at the very top floor but one or two below it. You therefore only get in or out when a new trend has clearly been established.
Why can’t you get out right at the top or in right at the bottom?
The answer is that you only get out of a market after you have seen clear evidence that the professionals have been selling excessive amounts over a short period of time. And when that happens, the market’s trend changes and starts to head south. In this example, it is only when the trend change has been confirmed from up to down that you would then make the decision to get out.
Wait for the Confirmation before Committing
At market bottoms, you don’t blindly rush in and buy when the market hits a brand new low just because it feels right. You see, the market could go even lower. Again you have to wait for a confirmation that the trend has changed from down to up. This can only happen after large amounts of buying from the professionals, again over a short period of time. This proves that it is utter nonsense when people say the market can’t be timed. Of course the stock market can be timed, but you do have to know what you are doing – and that knowledge does not come overnight.
That knowledge involves the discipline of reading the market every single day. Face time on the market is what counts. With this in mind, let me ask five important questions.
Is your Financial Advisor Helping or Hurting?
Question one: Does your current adviser love the market so much that he or she watches it–in real time–every single day–and even keeps a close eye on it when they go away on holiday?
Question two: Is your current adviser able to read and analyse the price and volume action on stock charts? And know exactly what it means and what appropriate action to take?
Question three: Does your adviser do a thorough two hour analysis on the market after the market has closed for the day?
Question four: Does your current adviser understand how the behaviour of indexes such as the Japanese Nikkei, China’s Shanghai Composite and the numerous European market indexes, could influence the direction of the US stock market?
And finally, question five: Does your adviser send you a daily report, or give you a call, to tell you how the market performed for the day and whether or not it is safe to invest–and if it is safe, what he or she is personally investing in so that you can do the same?
The Importance of Daily Market Updates
The reason these questions are so important is because the market’s health and direction can change in a matter of days. Yes, I did say days–and not weeks which means that to win, you need updating daily on what is going on. And if your current adviser does not really understand how the market works, they are probably hurting rather than helping.
If you would like to find out more about how you could get daily updates on market performance, making it possible for you to get gains of as much as 80.6% then please contact one of my team for a chat. As always you have my word that 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.
We endeavour to deliver quality information, ideas and personal opinions on stocks, funds and the general market. However, the information, ideas and personal opinions provided are intended to be a general guide to financial management only. Our products are intended to be a general guide to financial management. ISACO Limited and its employees are not agents, brokers, stockbrokers, broker dealers or registered financial advisors. ISACO Limited do not accept any responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in its products. ISACO Limited does not recommend particular stocks or investment funds or any other security or any other investment of any kind. If particular stocks or investment funds are mentioned, they are mentioned only for illustrative and educational purposes. Whilst ISACO Limited comments on the services and advice offered by other companies and individuals, none of the companies or individuals have authorised, sponsored, endorsed or approved this publication. ISACO Limited has not received any remuneration in return for including any company or product featured in our products. You should seek advice from a registered financial professional prior to implementing any investment program or financial plan. ISACO Limited, their agents and employees, do not guarantee any results or investment returns based on the information in this program. Past performance is no indication or guarantee of future results and the value of any investment you make can go down as well as up. The products present information and opinions believed to be reliable, but the accuracy cannot be guaranteed and ISACO Limited is not responsible for any errors or omissions. ISACO Limited accept no liability for such inaccurate or incomplete information.
