It’s so simple… so easy… and it can dramatically increase your investment returns.
Yet most people don’t do it. Heck, I know I have trouble doing it.
Still, I know it works… because when I manage to do it, I’ve made a lot of money!
So what is it? And are you capable of doing it too?
[ad#Google Adsense 336×280-IA]All I’m talking about is simply sticking with a good trade… and not selling too early.
You need to keep holding a winning trade until you’re really uncomfortable still holding it.
This is where you make the big money.
Here’s what you need to understand: Trends in financial assets tend to go on for much longer than you can possibly imagine.
So to make big money, you need to stay with a good trend much longer than you feel comfortable doing.
Let me show you an example…
Biotech stocks have done nothing but go up for years now. Thankfully, my subscribers have been in the trade… We’re up, A LOT, and we’re still in.
For example, in my True Wealth newsletter, we bought the biotech sector through the iShares Nasdaq Biotech Fund (IBB). So far, we’re sitting on a 71% gain in less than two years. Take a look:
Even though we’re up from $113 to $193, we’re still in the trade.
I’m sure some folks would take their profits here. They’d say, “You can’t go broke taking profits.” But you could have said that any time over the last two-year bull market. And thinking like that will limit you to mediocre returns.
So we’re going to stay in the biotech trade until our stop loss forces us out.
In order to make real money in stocks – and most assets – you need to be able to stick with a good trade on the way up, even when it feels uncomfortable.
Trust me on this. You can dramatically increase your investment returns… if you can simply do this one thing.
It’s worth repeating: Trends in financial assets tend to go on for much longer than you can possibly imagine. That’s one “truth” that has proven itself over and over in my career.
Don’t forget it. And use it to your advantage. Stay in that trade longer than is comfortable.
I can’t overestimate the power of this one idea in making money. Go with me on this… Always maintain a stop loss. But don’t cut out early. You have to believe you’ll make a lot more money in your investments than you already are.