Profitable Investing & Market Timing – A Winning Combination!
Profitable Investing – Owning Superior Stocks at the Right Time.
Profitable-Investing.com contains a variety of investing strategies and proven market timing techniques to produce consistently above average returns.
The basic stock investing strategy is to:
Only buy stocks when the market timing indicator shows that demand for stocks is strong
Identify the strongest sector
Buy superior stocks in the strongest sector and hold for as long as possible
Manage position and portfolio risk to capture the maximum profit
Go back to number 1…….
Read details of each investing strategy below…
1) Profitable Investing works best when market timing indicates that the market has a high probability of going up
Market Timing Beats S&P500 by 37%
So how do you know when it’s best to buy vs just sit on your hands?
Take a look at this market timing chart.
Do you think you would have better results just not doing anything in the circled areas?
Just that simple market timing strategy alone prevented buying during the market meltdown in 2007/2008.
Market Timing doesn’t mean jumping in and out of the market – I hold good stocks as long as I can – and sell them when the time is right.
And I’m not going to let my portfolio sink 40 to 50 percent without taking action.
I used to create this chart by hand, now I just take a look at the market guide at the top of every page on this site.
The Market Timing Indicator is updated after every market day. It now shows me at a glance what the demand is for stocks.
It’s amazingly useful!
Come back and check it daily.
2) If the stock market is going up what should I buy?
OK, so now you’ve been monitoring the Market Timing Indicator (top of each page) daily and at least the weekly time frame is showing high demand for stocks.
What do you do now?
Well before any stocks are purchased it would be great to know which sector of the stock market is the strongest. Think of a sector as a stock market within a market of stocks.
What if financial stocks are going up and health related stocks are going down. Clearly the most profitable investing would be in stocks belonging to the financial sector.
But how do you know which sector is the strongest?
I have the answer for you!
Profitable Investing Stock Market & Sector Strength Summary Table
This is an image of the daily stock market and sector strength table.
It shows at a glance exactly what you need to know about sector strength.
The top two rows shows the overall stock market strength.
The other 10 rows shows the strength of each individual sector.
Click the image to view today’s table.
The more green boxes you see the stronger the sector.
The more red boxes you see the weaker the sector.
How easy can it get?
3) Now we are getting somewhere, the stock market is strong, you’ve selected a strong sector, now what?
Now all you have to do is select a strong stock.
Once again I have a solution for you.
Every week I go through the entire stock market and find the 100 most consistently profitable and fastest growing companies and stocks to buy.
Many of these companies do not make the nightly news. They are not typically “headline” stocks.
But they are fantastic for a buying for a profitable investing strategy. They make money now, and they are likely to make more money in the future.
I publish this list on the stock watchlist blog at the end of each week.
You can search and sort watchlists by stock and sector.
See if the stocks you own are in the current watchlist!
4) Everything has has lined up so far…
The stock market is strong, you have selected a strong sector, you’ve selected a strong stock to buy…
Profitable Investing – How Many Shares To Buy Calculator
Now the last decision is “how many stocks should I buy”?
That used to be a really tough question for me. I’d talk to experts and financial planners and the answers were all over the place.
They would say things like… As many as you can afford… It depends on what the target price is… Invest 10% of your portfolio… etc
None of those answers are very useful.
Here is a strategy that manages risk but still buys enough shares to be profitable when the stock price moves up:
Figure out what price you would sell if the stock price moves against you
Calculate the risk per share by subtract the stop price from the buy price
Use the risk per share to calculate the number of shares that put no more than 1 to 2% of your total portfolio at risk.
This sounds complicated but it’s really very simple
I even provide a simple position sizing calculator for your use so you can size your risk managed position in a second or two.
Click the image above to use the calculator.
Congratulations! You’re well on your way to above average investing results.
There are many more free resources and information here that you will find useful.
Profitable Investing Blog Update Schedule
Click the image or this link to view the website update schedule.
By far this method of investing in stocks is the most profitable that I have discovered.
I’m so confident of it’s usefulness that I publish my buy and sell activities at the end of every week!
Visit the current portfolio.
When I buy a stock I’ll tell you and I’ll explain why.
When I sell a stock I’ll tell you and I’ll explain why.
I’ll also tell you if I made or lost money on every stock sale.
Every week I post the complete portfolio holdings, how long each position has been held, current gains, current losses, and current sell price levels.
All so you can follow along and become a better than average investor!