10 Surefire Ways To Make An Investment Fortune, Part I

Summary: People have often asked me how I always pick stocks that end up with 20% gains in a couple of months or triple-digit gains in a year. They ask me is it luck? Maybe with a couple of stocks it may have been luck, but luck doesn't play a role in buying ten or more stocks in the same year that earn more than 80% returns. The key is not to follow the herd, stop listening to the investment talking heads, and to learn an investment system and then be unwaveringly courageous in apply...

People have often asked me how I always pick stocks that end up with 20% gains in a couple of months or triple-digit gains in a year. They ask me is it luck? Maybe with a couple of stocks it may have been luck, but luck doesn't play a role in buying ten or more stocks in the same year that earn more than 80% returns. The key is not to follow the herd, stop listening to the investment talking heads, and to learn an investment system and then be unwaveringly courageous in applying your system. There have been times family and friends have asked me for advice, and I have told them, "Buy this stock. I guarantee you, you will not lose money." Now I know that there are no guarantees in the stock market, but if you follow certain strategies, you can be 90% sure that the stock will appreciate. With this particular agricultural stock, it was almost the perfect stock, and I was 99.9% sure that the stock would produce monumental gains. Sure enough, the stock exploded almost 130% higher in about a year. And this stock was not some risky penny stock trading at less than a dollar a share. This stock was trading at about $70 a share at the time I advised my friends to buy it. So below are the 10 surefire rules I employ to build enormous gains in investment portfolios. (1)Buy When Fear is Rampant, Sell When Mania is the Greatest Every investing course should be accompanied by a psychology course as well. The most difficult thing to do in investing is to buy more when fear and panic is rampant and to sell when mania is the highest. Stock markets and asset classes cycle in peaks and troughs. Most people will not buy stocks until after stocks are plastered all over the news and after they have just risen by 30%, 40%, 50% or more, believing that they will rise higher forever. Buying at the troughs when nobody is talking about a stock or during steep corrections provides a low-risk, \high-reward setup for your portfolio. (2)Learn What Your Neighbor is Doing, Watch Investment Shows on MSNBC and Bloomberg on TV, Listen to the Recommendations of Your Financial Consultant - Then Make Sure that You Don't Have a Single Thing in Common With Their Strategies If you are one of the thundering sheep herd and perpetually follow the mindless actions of others, you are virtually guaranteed to lose money or forever relegate your portfolio to average to below-average returns. The surest way to build an investment fortune is to buy asset classes and stocks when nobody is discussing them and to sell them when everyone is talking about them. This requires a nose for market timing. Is market timing impossible as all the global investment firms always tell you? Hardly. Learning what asset classes and individual stocks are poised to skyrocket every year just takes a little bit of time, but is really not that difficult. Since time is a commodity that Private Wealth Mangers and Financial Consultants employed by large commercial investment houses lack, they tell you that market timing is impossible merely because they don't have the time to perform the necessary research. However, purchasing stocks that are likely close to cyclical bottoms instead of believing that market timing is impossible and indiscriminately buying stocks will easily add another 10% in returns to your portfolio per year. Do you really believe that you can make a fortune by buying any stock that is advertised on a TV program watched by millions of investors worldwide? Ultimately, if you own the same stocks as your neighbor to the right, your neighbor to the left, the talking head on TV, and the talking head at your commercial investment firm, then are doing something the proper things to build an investment fortune. If you don't seek out stocks and asset classes at times when nobody is considering them, you will never make serious money in investing. You may make 10% a year or maybe even 15% a year but if you want to enter the world of the big boys and earn 25% or more in annual returns, you have to dig a lot deeper than your investment peers. Just a couple of months ago (June 25, 2007) this email landed in my inbox from a big investment newsletter publisher. "Over the past week, I've crisscrossed northwestern Canada looking for the next great investment. I'm up here to find out what everyone's invested in. And after attending an investment conference in Vancouver last week, I can tell you absolutely that no one is interested in gold