Why I always invest like I’m wrong

Why I always invest like I’m wrong

Where Innovation Meets Investing

You do stocks, huh?... I’m thinking about ploughing a few grand into GameStop… that thing’s going to the moon, bro!”

The guy on the treadmill next to me was clearly excited.

Then he told me all about another opportunity as he wiped sweat off his face.

The next Tesla,” he said, grinning from ear to ear.

And he wasn’t the only one…

I had at least four conversations about stocks at my local gym last week.

(It’s not exactly a hotbed of investors. In fact, I’ve never talked about stocks there… until recently).

Another guy told me he bought $5,000 worth of Royal Caribbean Cruises. Why? It “went down a lot”… and he thinks it’s a “lock” to bounce back.

And unfortunately, it’s not just at the gym.

An acquaintance told me he’s “dropping a bunch of money” into an electric car startup that hasn’t made a single car.

Another guy told me he’s thinking about getting a quick loan to buy Bitcoin.

One thing’s for sure:

  • Making money in stocks feels really easy right now.

Stocks are on a great run.

And we’ve taken full advantage of this boom at RiskHedge:

My Disruption Investor subscribers are sitting on gains of 137% in Albemarle (ALB), 128% in Virgin Galactic (SPCE), 105% in ASML (ASML), and 119% in PayPal (PYPL).

Justin Spittler’s IPO Insider subscribers are up 343% on Fastly (FSLY) and 340% on Cloudflare (NET).

And Chris Wood’s Project 5X subscribers are currently enjoying eight triple-digit winners.

I personally think stocks are headed much higher... and even bigger things are ahead for 2021.

(If you haven’t yet, check out our new RiskHedge All Access passes to profit off our top moneymaking ideas this year.)

But that doesn’t mean I’m loading up on risky stocks like my friends at the gym…

Instead, I’m doing what I’ve always done…

  • I’m investing like I might be WRONG.

Again... my research suggests stocks are headed a lot higher.

And certain sectors could hand out a lifetime’s worth of gains in the next few years.

I personally have a lot of money invested in disruptor stocks. And I’m still buying today.

But no matter how bullish I am, I still invest like I might be wrong.

What do I mean by that, exactly?

First, don’t lose sight of why we invest in the first place…

We invest so we can live comfortably… own lovely homes… enjoy wonderful vacations, and eventually live fulfilling retirements.

  • We invest to build lasting wealth.

We’re making a lot of profits in the stock market right now.

To make the new wealth you’ve likely generated in the past few month last, you must avoid significant losses.

In my experience, this is the #1 thing that separates investors who grow rich from those who never reach their financial goals.

There are a lot of “one hit wonder” investors who strike it big during a stock market rally... only to give it all back on the other side.

Because they didn’t invest like they might be wrong.

Don’t be that person.

Respect the market and always remember—stocks fluctuate.

As I said—I’m convinced stocks are headed a lot higher.

But there will be 10%... 20%... 30% bumps along the way.

So today, I’m sharing two proven strategies to help you come out on top… no matter what happens next.

  • Are you sick of hearing about “free rides” yet?

A “free ride” is a simple strategy we often use to lock in profits when one of our recommendations shoots up 100%+.

The idea is you sell enough shares to take your initial investment off the table, and then let the rest “ride” risk-free.

It’s the best way to eliminate any risk… while still going after big gains.

Our microcap specialist, Chris Wood, locked in an incredible eight free rides in January alone.

And I recently told my Disruption Investor subscribers to take free rides on PayPal and Albemarle after they shot up over 100%.

But not everyone was happy with me. One subscriber even said we were “leaving significant money on the table.”

And it’s true: This time, you could argue that not taking a free ride on PayPal was the right move. We’d currently be up a little more if we didn’t take the free ride.

  • But if I had to do it all over again, I’d still take a free ride—no questions asked.

A free ride gives up a little upside in order to guarantee 100% that a trade will be a winner.

I’ll make this tradeoff every time.

In short, you can never go wrong taking out your initial investment when you’re up 100%+.

Keep in mind, you don’t have to be up more than 100% to apply this strategy. If you’re up 50% on a stock, you can sell two-thirds of your position to recoup your initial investment. Then let the rest ride with zero risk.

My subscribers can sleep well at night knowing that whatever happened with PayPal, they had locked in a substantial profit, and this trade could never go against them.

You simply can’t beat that.

  • Smart position sizing is another surefire way to build lasting wealth.

Investors get excited when they read about a game-changing stock with huge upside. Their minds instantly race toward the big profits they could make.

But often, they forget to stop and ask: What’s the right amount of money to invest in this stock?

I’ve talked to folks who’ve had so much of their wealth tied up in one stock they can’t sleep at night.

You never want to be this person.

You never want to bet half your account on one position.

Think about how you would feel to watch it sink, say, 40%...

It would be crushing to lose a big chunk of your wealth because of one dumb decision.

Remember, it’s impossible to know what will happen on any given day in the markets. So it’s important to keep your position sizes small so that it won’t hurt too much if one doesn’t go your way.

  • In short, to consistently WIN you must always invest like you’re WRONG.

Right now, making money is the easy part.

Dodging losses is what separates successful investors from amateurs.

Nobody ever went broke taking profits. So if you’re sitting on huge gains from one of our portfolio picks, consider taking some money off of the table today.

And if you currently have too much money in one stock, make sure to spread your risk around by allocating that capital into your other positions.

Don’t be like the guy at the gym…

Being smart in times like these will let you come out on top no matter where the market’s headed next.

As I said, I think the trend in stocks is UP. But I’m ready for a pullback, and you should be too.

Here at RiskHedge, we’ll be here to guide you every step of the way.

Stephen McBride
Editor — Disruption Investor

P.S. We still have a few RiskHedge All Access passes left… If you’re interested, now’s the time to take advantage of this incredible offer.

This is your opportunity to claim ALL our premium advisories for less than the regular price of one advisory.

That includes my moneymaking stock recommendations along with Justin Spittler’s, and Chris Wood’s… at a savings of $9,549.

But time’s running out… so if you want to capitalize off this, I suggest making your move today.

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