Chris’ note: If there’s one thing that’s common among all top investors, it’s this: the ability to remain calm no matter which way the market turns.
It’s one of the keys to long-term trading success. But it’s not easy.
That’s why today, we’re handing the reins to our friend Teeka Tiwari over at Palm Beach Research Group. Teeka’s a longtime investor who’s seen it all – and he refuses to let the market’s unpredictability shake his readers out of profitable positions.
Despite the Crypto Winter of 2018 scaring most investors away from the crypto market, Teeka remained convinced this was where his readers’ money should be. And since the start of this year, they’re sitting on three positions with over 200% gains.
Below, Teeka lets you in on a new trading method that can help prevent your emotions from interfering with your investing…
By Teeka Tiwari, editor, Palm Beach Quant
Trading-related stress has been the single biggest killer of my health…
High blood pressure, horrible eating habits, obesity, and depression… I’ve suffered from them all.
And although I’ve figured out how to handle the stresses of the market, the ill effects of the past still linger with me.
Years of untreated high blood pressure obliterated my kidney function.
According to my doctor, I’ve got the kidneys of an 80-year-old man – and I’m not even 50 yet. It also didn’t help that – until recently – I was 50 pounds heavier.
I’ve given my life to the financial markets… and I don’t regret it one bit.
Sure, it’s been a hell of a ride. But it would have been even better had someone taught me how to emotionally deal with the relentless ups and downs.
Among all my mentors, not one of them showed me how to handle the array of emotions everyone working on Wall Street goes through. But it’s not just professionals who wreck their health over market stress.
Individual investors worry themselves sick, too, over conflicting headlines, earnings reports, and the endless barrage of chatter from talking heads on CNBC.
Everywhere I go, investors ask me what I think of this or that announcement… this or that policy… or this or that rumor. I see individual investors obsess over nuances in the market that border on the obsessive.
Today, I want to share with you what I’ve done to lessen the emotional blows of market volatility – and what you can do to unhook from the heart-racing news cycle designed to keep you glued to the television.
Focus on the Big Picture
When it comes to investing, for me, it all starts with the long-term trend.
Is the long-term trend up or down? Since late 2014, I’ve been convinced the long-term trend in stocks is up. (I explain why right here.)
If the long-term trend is up, I just buy on weakness and hold good stocks. I use position sizing and stop losses to protect me from black swan risks like company fraud or political upheaval.
But other than that, I just go about enjoying my life.
I wrote about this exact approach in April 2019 – and then again in August – when I was receiving hundreds of anxious emails about the U.S.-China trade war.
In April, I said:
I’m not worried about a full-scale trade war breaking out. I think President Trump is posturing for a backroom deal later this year.
But the market is discounting a trade war. That brings me to one of the biggest mistakes professional investors make. They try to figure out what every headline means for the market.
All you should do when looking at the markets is look at the big picture. [Emphasis added.] And the big picture is that President Trump’s tax cuts have spurred the economy. We’re seeing employment, wages, and profits rise. All of these are incredibly bullish for stocks.
Back then, the S&P 500 was around 2,900. Today, it’s around 3,100 – 7% higher.
Again in August, the market had a rough ride with negative headlines about the trade war everywhere. And I stated:
This type of volatility is normal. And the best way to handle it is to do nothing at all. Go and enjoy your summer. Forget the trade war.
There will always be something going on in the market to fret about. But who cares? It won’t mean a thing if the market reaches a new high again in three months.
Unless you’re a day trader, none of this daily volatility should bother you.
I still believe a trade deal will get worked out at some point.
So don’t get sidetracked by the noise. Just focus on the big picture… and understand we’re in a long-term uptrend in stocks. [Emphasis added.]
Three months later, we’re at new highs… and no one cares about what happened in April and August.
Can You Really Eliminate Emotion?
If you’re anxious about every move in stocks, you can keep your emotions in check by focusing on the big picture and – if necessary – reducing your position sizes and using stop losses.
If that is still not enough, there’s an investment method I’ve discovered that is 100% emotionless.
Tired of conflicting research opinions or worrying about valuations, interest rates, and currencies? None of it matters with this new approach.
Now, this idea isn’t for everyone. But not because it’s difficult. It’s not. In fact, it only involves about 12 seconds of “work” to make $12,000 or more per month. It isn’t for everyone because it uses a trading method you’ve probably never used before.
Friends, I’ve spent two years researching a way to bring this idea to the public… And now, I’ve finally found it. So go here to learn how to take your income and life to the next level.
Let the Game Come to You!
Editor, Palm Beach Quant