The Secret Behind My Best Recommendations

“I feel terrible when I follow your advice,” Darrin told me yesterday…

I’d just gotten off the stage in Singapore after giving a speech at the S&A Alliance conference, when I was approached by a friendly-looking subscriber – Darrin.

But Darrin didn’t start off friendly… Darrin came right up to me and told me how terrible he feels every time he buys something I recommend…

It turns out, he meant that as a compliment… I had made him a lot of money. He told me…

Steve, when I bought your euro trade years ago, I couldn’t believe I actually went through with it. It felt wrong in every way. I didn’t know why I was even following your advice. But then I ended up making REAL money on it.

Over years of following my advice, Darrin came to a conclusion… “Hold your nose and buy” works.

The worse Darrin feels when he’s making a trade based on my advice, the more he knows he NEEDS to buy it. He has learned that the worse he feels when he’s pulling the trigger, the more money he makes.

[ad#Google Adsense 336×280-IA]I have to let you (and Darrin) in on a little secret…

I feel the same way Darrin does when I’m buying.

I have simply learned that Darrin’s feeling – the “hold your nose and buy” feeling – is actually what you want to feel.

It’s GOOD to feel nervous that things look really bad and you’re the only person in the trade.

Said simply… when nobody is left to sell, the downside risk is gone, and the upside potential is the greatest.

So what’s an investment today where you’re the only person in the trade… where there’s nobody left to sell?

How about Chinese banks…?

When I recommended Chinese banks recently, I got a three-word e-mail from Tama Churchouse, an analyst in Hong Kong who I respect (from www.AHAreport.com).

Tama’s e-mail simply said “Cojones muy grande.”

I asked him to elaborate on that e-mail while on stage this week in Singapore. Tama said:

Steve, you have to be the only analyst on the planet willing to buy Chinese banks. I love it. I think you’re trading it right, with a trailing stop. You could end up making a lot of money for your readers.

I told you about Chinese banks a month ago.

I wasn’t buying because I loved them. I was buying because there was nobody left to sell. I wrote:

This is the most hated trade I can share with you… which typically means it has the most upside potential… We know the story is ugly. Our bet is that at these prices, all of that ugliness is already priced in.

Have you seen what’s happened with Chinese banks lately? They just hit a new 10-month high this week.

The easiest way to buy Chinese banks is through the Global X China Financials Fund (CHIX).

If you want the next “I feel terrible when I follow your advice” trade, buy Chinese banks…

Good investing,

Steve

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Source: DailyWealth