Investing in stocks is a way to set aside money while you are busy with life and have that money work for you so that you can fully reap the rewards of your labor in the future. Legendary investor Warren Buffett defines investing as “the process of laying out money now in the expectation of receiving more money in the future.” The goal of investing is to put your money to work in one or more types of investment vehicles in the hopes of growing your money over time.

The key is that you don’t need to be an expert to invest like one. What you need is a good source that explains what is happening in the markets and then makes recommendations, telling you WHY you should invest in that stock or sector.

Since 2002 the Trend Letter has delivered average returns of over 40% per closed trade. We help people just like you understand what is happening in the markets and what sectors, and stocks make the most sense to invest in.

What Are the Risks of Investing?

Investing is a commitment of resources now toward a future financial goal. There are many levels of risk, with certain asset classes and investment products inherently much riskier than others. However, essentially all investing comes with at least some degree of risk: it is always possible that the value of your investment will not increase over time. For this reason, a key consideration for investors is how to manage their risk to achieve their financial goals, whether they are short- or long-term.

Key rule: Have an Exit Strategy

The first rule in being a successful investor is to not lose money. That might sound obvious, but the truth is most investors have no exit strategy for when they are wrong.  Basic human emotion is perhaps the greatest enemy of successful investing. But whether you’re a long-term investor or a day trader, a disciplined approach to trading is key to profits. You must have a trading plan with every trade. You must know exactly at what level you are a seller of your stock—on the upside and the down. Before we buy any stock or Exchange Traded Fund (ETF) we always set a SELL Stop in case the market moves against us.  When the stock starts rising, we raise our SELL Stop to ensure we lock in gains when we get a pull back.

The bottom line

Being a successful invest requires having the tools necessary that give you the best information to understand current and future market trends. At Trend News we offer three services for investors:

  1. Trend Letter is a weekly service that covers stocks, bonds, currencies, commodities, and precious metals. Trend letter has been publishing since 2002 and has an incredibly successful record over that 20+ year span.
  2. Trend Technical Trader (TTT) is an online service that was originally designed as a hedging service, allowing investors to protect their investment during down markets.  We have expanded TTT service to include trading long positions in precious metals, commodities, and other sectors as well.
  3. Trend Disruptors is our service for investors interested in investing in technical sectors. Disruptive technology propels us into the future at a rapid and increasing pace. Virtually no industry goes untouched, as the boundaries between the physical and virtual worlds are erased, transformed, or re-imagined. New technology can re-shape existing business around the world, and create entirely new business models never before thought of.

Whatever you  experience, we have a service that can help you become a very successful investor. It’s your money – take control.

Market Notes

Market Notes – April 12/22

The market opened strong,  but couldn’t hold the intraday gains. The S&P 500 continued to trade with lower highs and lower lows, and has now fallen through  both the 50-DMA (red wavy line) and the 200-DMA (blue wavy line).  The inflation numbers were the main problem for the markets, as US inflation came out at 8.5%, which will put more pressure on the Fed to raise rates.

With US rates rising faster than the other main economies (Europe and Japan) capital flows out of those regions and into the $US.

There is usually a strong correlation between energy stocks and crude oil, but recently we are seeing a price divergence. The recent weakness in crude oil may suggest a growing sentiment among investors that inflation may be topping and a recession is a more likely occurrence.  This correlation will return, we just now need to see if oil resumes its rally and joins the XLE, OR if XLE starts to decline along with oil.

Gold had been trading in a tight range and it has been disappointing that it hasn’t been able to rally with the war and inflation.  It has now broken through near-term resistance, which is encouraging.

Stay tuned!