Trading Tips

Most investment research is based on one thing, and one thing only: Finding the best opportunities to buy.

There’s nothing wrong with that. It’s a good thing in and of itself. After all, if you don’t make a good buy in the markets, you’re pretty much guaranteed to lose money.

But what happens when things go well?

That’s where the trouble starts.

That’s because most investment research doesn’t tell you anything about when to sell a position you hold—whether it’s gone up or down.

Many investors use rules like stop-loss orders. But that also causes them to lose their shares while a stock’s price is temporarily down.

Even short-term traders use rules like this—which limit their losses, but can also prevent their gains from working out as well as they could.

For investors focusing on wealth-compounding stocks, however, selling can be considered the exception rather than the rule. Investors who sell a stock capable of compounding their wealth need only do so under some very specific, and potentially dire, circumstances. A normal market correction just won’t cut it.

With all the focus on buying, don’t forget the other half of investing—knowing when, or even if you should sell.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
Warren Buffett's Top 5 Stocks: https://www.tradingtips.com/warren-bu...

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:

Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...

Tech stocks in 2000. Gold in 2011. Cryptocurrencies in 2017. Pot stocks in 2018.

They all followed the same pattern.

They had massive gains. They started from small rises, but over time, they started to rise at a faster and faster rate. Speculation and greed took over. Any attempt to curb prices on the way up were swamped with buy orders instead.

Along the way, a parabolic chart pattern started to unfold. That’s a tough pattern to trade—once every investor who wants in has gotten in, early investors reap large rewards. Once sellers start to outweigh buyers, the prices deflate nearly as quickly as they rise. The 100, 200 or even 1,000 percent gains lead sharply and quickly to 60, 70, and 80 percent losses, mostly hurting folks chasing those returns near the top.

Recognizing this pattern can unlock huge profits—and also give you a hint that you should take them off the table before they’re done.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
Big Book Of Chart Patterns: https://reports.tradingtips.com/big-book-of-chart-patterns

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:

Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...

Most folks just think of investments as things that go up or down (and even then hopefully just up).

But the fact of the matter is, any asset can have a long period of time where it trades in a sideways range, bouncing between a high and low.

Recognizing these ranges from a chart pattern is a good way to find short-term trades. It may not be the big grand slam of catching a major move up or down, but it can give you consistent profits time and again.

These types of patterns occur in the markets all the time. They’re known as consolidation patterns, and they tend to keep a position from making a major move for a while it’s ready to continue moving in the trend it was moving in before—whether up or down.

That makes them a great way to find profitable future trades, although it may take more time to play out than other chart patterns.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
Warren Buffett's Top 5 Stocks: https://www.tradingtips.com/warren-bu...

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:

Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...

Charts can provide plenty of profitable trading patterns time and again.

But they can also be deceiving.

That’s because most charts don’t share key data. It can tell you a price point on a given day—which is handy. But there’s more to a price chart than price.

For instance, if a stock keeps moving higher day after day, it may look like a good trade. But if it’s bouncing around during trading hours and only barely heading higher, it may not look like the slam dunk that it could be.

To find these extreme intra-day moves, and to get an idea of where the bulk of the trading money is going on a daily basis in a stock, a line chart just won’t cut it.

That’s where candlestick charts come in. They show where most of the money in a trade is going throughout the day. And it can show how volatile a stock has been moving—giving more critical data for making short-term trades.

Best of all, however, is the fact that candlestick charts also show another type of pattern in the markets. These patterns, called gap patterns, can indicate when big money is making a move. Understanding these moves provides more short-term trading opportunities than just following a line on a chart.


Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
Big Book Of Chart Patterns: https://reports.tradingtips.com/big-book-of-chart-patterns

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:

Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...

Companies come and go. The last component of the original Dow Jones Index, General Electric, got booted last year.

But you could have been out of that name for far longer if you had followed a simple rule: Only invest in companies that deliver increasing income to shareholders every year by increasing their dividend.

Following that rule would have gotten you out of a lot of stocks before they really took a dive—and kept you in some of the best wealth-building stocks of all time.

In the end, researching the market for stocks that deliver great returns to investors over time will often come up with these same companies. After all, if they can keep paying more income out to shareholders every year for 15, 20, 25, or even 50 years (if not longer), they’re going to give you capital gains over time as well.

Looking and analyzing these companies, and loading up your portfolio with them, reinvesting the dividends, and waiting out the market is a simple way to build a wealth-generating machine as if by magic. Knowing how to find these stocks unlocks some of the market’s best gems.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
Big Book Of Chart Patterns: https://reports.tradingtips.com/big-book-of-chart-patterns

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:

Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...

Investing is a lifetime journey, and getting started can feel frustrating. That can be the case with income investing, where the first dividend check might just be for a paltry few dollars.

While growing a dividend over time can lead to a powerful return, if you’re looking for high income now, there are plenty of opportunities available that can start showing you a much larger pile of cash relative to what you put in.

These high-yield plays, typically paying in the 5-10 percent range, are companies that tend to be structured to pay out most of their income to shareholders. There are some tax differences between these companies and traditional ones, but that’s well offset by the higher income these companies provide.

Areas with high-yielding opportunities for investors include real estate investment trusts (REITs), business development companies (BDCs), and master limited partnerships (MLPs). By passing through most of their income to shareholders, they pay sky-high yields.

They may not see the kind of share growth of a traditional company, but they do offer current income now… exactly the kind of opportunity that could turn a modest portfolio yield into a sizeable one, and help balance the lower-yielding stocks that you own.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
Big Book Of Chart Patterns: https://reports.tradingtips.com/big-book-of-chart-patterns

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:

Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...

A good investment policy is one that allows you to profit, reinvest those profits, and follow from a virtuous cycle of increasing returns over time.

That’s the policy essentially used—in various forms—by Warren Buffett over the decades to become one of the world’s wealthiest individuals.

Whether buying individual shares of stock or entire companies, the principle is the same. You want to find companies that can continue to grow over time at a somewhat steady and predictable rate. Growth companies won’t do. They may end up hitting the skids, and growth companies that fall out of favor tend to get hammered by the markets.

But companies in mature, steady markets, tend to have slower, but more predictable growth. More importantly, well-managed companies can throw off plenty of cash flow to investors. Whether reinvested or paid out in dividends, this cash flow provides new investment opportunities. And those new opportunities can in turn provide even more opportunities.

Much like compound interest, excess cash flow can allow modest early returns to expand into truly great wealth. There’s no real secret behind this process, other than buying right and having the patience to see things through. That kind of discipline is what separates Buffett from thousands of failed disciples and others in the investment industry who thought they could outperform the markets hugely and consistently.

Most small investors don’t want to face the big setbacks of a bear market. But using this strategy of focusing on great cash-flow generating companies can allow investors to learn to adopt one of Buffett’s maxims: Buy when others are fearful.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
Big Book Of Chart Patterns: https://reports.tradingtips.com/big-book-of-chart-patterns

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:

Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...

Most folks think you need a few thousand dollars to start investing.

If you follow a traditional route, that’s probably true. You’d need that much to fund a brokerage account and start buying a few stocks to start a nest egg.

But there’s a way that you can get started investing for as little as $50. In many cases, it’s more. But the secret is a simple one. Companies that pay out dividends to investors often have a plan that lets you directly invest in their shares. And you can set up recurring payments to add to your stake.

In return, the company will reinvest those shares for little to no fees—a far cry from the fees charged by most brokerage accounts. That’s huge. It provides income investors with an additional benefit that they can’t get from traditional brokerage investing.

This plan, where the company takes on the fees associated with recurring investments, can allow you to get started building a dividend portfolio for less than a nice dinner out for two or a tank of gas. Where it goes from there is up to you, and there is a risk to owning any single stock. But the advantage of getting into investing in high-quality companies throwing cash out to shareholders on a regular basis is too good to pass up.

These dividend reinvestment programs or DRIPs are a secret way to get your investment portfolio started on a budget. Many companies will even throw in some advantages that a brokerage account just can’t offer. For the right companies, this may be the best, lowest-cost way to start compounding your wealth with dividend stocks.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
Big Book Of Chart Patterns: https://reports.tradingtips.com/big-book-of-chart-patterns

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:

Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...

There are plenty of ways to beat the market. Warren Buffett knows them all. For the most part, he’s also tried them all.

Investors with small sums of money can fare well following the modern equivalent of the strategies a young Buffett used to outperform the go-go market of the 1960’s.

For example, Buffett often made trades based on arbitrage opportunities. That’s where a stock has one price in one exchange, but a different price in another. Buy in the lower priced and immediately sell in the higher price, and you get an instant profit.

Today’s fast-trading, information-efficient markets have made such opportunities rare. But when one company announces an acquisition offer for another, there’s usually a low-risk, moderate-return way to use merger arbitrage to your advantage.

Say company A offers to acquire company B at $50 per share. And say shares move to $48 on the news. There’s a $2 opportunity there to buy shares of company B. As long as the merger goes through, there’s a low-risk way to make a moderate return in a short period of time. Just beware—not all mergers go through.

Another strategy is to follow a deep value investing. Young Buffett looked to buy sizeable stakes in smaller companies that were trading incredibly cheaply. But instead of looking entirely at earnings or profit margins, there would also be an analysis of the company’s cash and cash equivalents. In the 1960’s, it was possible to find many small companies often trading for less than the value of their cash per share!

While the opportunities aren’t as extreme like that today, markets are mostly focused on large-cap companies. Finding deep value in smaller-cap companies can still lead to plenty of opportunities to outperform the overall stock market.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
Big Book Of Chart Patterns: https://reports.tradingtips.com/big-book-of-chart-patterns

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:

Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...

There’s more to actionable trading ideas than just earnings season. Companies often report extraordinary projects well outside their mandated reporting period. And by doing so, they can give investors some timely tips on when to buy—or when to avoid, or even sell, their company’s shares.

For instance, a company reporting a new, lavish headquarters building may look like a great investment. They’re clearly growing and need the space, justifying the multi-million (or even multi-billion) dollar investment.

But that’s also a sign that a share price is going to lag—or drop entirely. Even great companies like Apple (AAPL) saw a lackluster trading period in their shares that lasted most of the time they were working on their new headquarters building.

But for lesser companies, or even more cyclical ones, the decision to expand a headquarters tends to be made near the top—at a time when they should be looking at how to scale back or defend from a market decline, rather than overextend themselves for some swank office space (at shareholder expense).

Other times, companies near a peak may decide the best way to grow is to simply buy up another company. While that may make sense, most mergers are sold as something that will move the bottom line far more than it actually does. And acquiring companies tend to overpay, leading to underperformance later. We just saw this happen with a $15 billion value write down at Kraft-Heinz, the food conglomerate that merged just a few years back.

Companies that make certain announcements may as well be broadcasting to the investment community that their shares will underperform for a while— and possibly even cause a company to go bankrupt.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
Big Book Of Chart Patterns:  https://www.tradingtips.com/book-of-chart-patterns/
The Ultimate Stock Trading Toolbox: https://www.tradingtips.com/ultimate-toolbox/ 
10 Great Stocks Under $10: https://www.tradingtips.com/10-great-stocks-to-buy-under-10/
7 Cheap & Good Stocks: https://reports.tradingtips.com/7-cheap-stocks 


Step #2 - Join Our Premium Advisories:
The Next Superstock: https://www.tradingtips.com/3-disruptors
Triple Digit Returns: https://reports.tradingtips.com/pot-mania/



Step #3 - Connect With The Community:
Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradingtipsdotcom/