Tape This to Your Forehead Right Now (If You Want to Make a Fortune)
I get asked frequently “how to make a fortune.”
Many investors think doing so comes down to picking the right stocks. Others believe it’s all about timing. Still more think it’s just plain dumb luck.
While it’s true that all of those things DO play into big profits, I’ve got a secret.
Get what I’m about to show you right and YOU can succeed.
Tape this to your forehead right now.
Most people believe that the world’s most successful investors can mint money at will, but what they don’t realize how often they’re “wrong.”
People like Warren Buffett, George Soros, the legendary Jim Rogers… they’ve all got huge losers in their past.
Buffett famously didn’t buy Amazon.com Inc. (NasdaqGS:AMZN) early on and, according to remarks he made to Yahoo!Finance’s Andy Serwer earlier this year would have “missed Microsoft” even if he’d gotten to know Bill Gates.
George Soros who famously made more than $1 billion in a single session one fateful September 1992 day when he “broke the Bank of England” bailed on Gilead Sciences Inc. (NasdaqGS:GILD) in 2014, only to watch it rise another 45% after he sold.
Jim Rogers told me years ago about shorting a number of stocks early on in his career, but getting wiped out because they had gigantic rallies before they failed. Ever gracious, I’ll never forget the twinkle in his eye when he said it hadn’t occurred to him that failing companies could double.
I got burned early on an IPO that was supposedly a “sure thing” and, as a result of that experience, passed a week later when offered shares in Microsoft Corp. (NasdaqGS:MSFT) as it went public, a decision that’s probably cost me $20 million over the years.
Perhaps even more.
I figured out very quickly that being “right” wasn’t as important as being “profitable.”
Today it’s at the core of everything I do, every recommendation I make, and every tactic I suggest when it comes to lining up big profits.
Because of this chart.
Take a good look.
Now, look again.
What this chart shows you is deceptively powerful.
You have to be right 60% of the time if you’re trading with a Risk to Reward Ratio of 1-to-1, but only 20% of the time if you’re trading with a Risk to Reward Ratio of 5-to-1.
The world’s best investors can afford to be wrong up to 80% of the time because they know what it takes to be profitable and pick their stocks, their entries, and their tactics accordingly to line up big profits when it matters.
That’s why, for example, I hammer on value-oriented choices when they’re beaten down because I know that the markets have an upward bias and that buying great companies “on sale” improves your odds not to mention your profits.
That’s why I recommend selling options whenever volatility is high because I know doing so readily improves your chances of success given that 90% of options expire worthless leaving the buyers empty-handed.
That’s why I suggest lining up with the Unstoppable Trends we follow because I know that each of them is backed by a trillion dollars or more in spending that will happen practically no matter what the markets do next. It’s money Wall Street cannot hijack, Washington cannot screw up, and humanity cannot live without.
That’s why I don’t get worked by the short-term squiggles that bother most people. They’re hardly a blip on the radar when you understand how and why to increase the Risk to Reward Ratio. And, of course, when to make your move.
I’ll be back to talk about that another time.
Right now, though, I want you to take a good hard look at CyberArk Software Ltd. (NasdaqGS:CYBR).
It’s beaten down, unloved and off the radar which is why I have no doubt it’ll be a huge winner over time for anyone who steps up to the plate.
Even if there’s more selling ahead.
Until next time,