Here we go! All previous tips lead up to this. As mentioned in the last tip, stockpiling is the #1 most powerful investment strategy. This is the strategy that turns every day investors into millionaires and millionaires into billionaires.
Am I promising that tykr will make you a millionaire? No. But stockpiling will help you build wealth faster.
There is a saying that successful investors use “if the stock goes up, we make money but if the stock goes down, we get rich.”
Buying more shares as the stock goes down, lowers your adjusted cost per share. This means, when the stock rises again, you make massive returns.
Here is how you stockpile…
1) Watch the market
I read the news for about 5 minutes every day. When I notice the market falling such as it did during the covid-19 dip in march of 2020, I get very excited. Now keep in mind, we cannot time the very bottom. No software platform or human can predict the bottom so what you do is “Buy into the dip.”
2) With On Sale stocks, I try to buy every 10% down
As my On Sale stocks fall every 10%, I buy more. In an earlier email I talked about keeping 50% of your funds in cash. Well, that 50% is reserved for times like this. You use that 50% to stockpile.
Here are detailed instructions on how to buy into the dip.
3) With Watch stocks, I hold.
As my watch stocks go down, I hold and wait for the stock to go back up. I do not buy more unless I did thorough homework on the 4 m’s. If the 4 m’s check out as a great investment, than I buy more.
4) With Overpriced stocks I sell, set a trailing stop loss, hold, or buy more
If I’m not sure the stock will go back up again, I will either sell or setup a trailing stop loss as long as the share price is higher than my cost basis (buy price). That way I don’t lose money. However, if the Overpriced stock falls below my cost basis, I will follow the lesson “What if the share price drops below my buy price?”
If I did thorough homework on the 4 m’s I may hold the stock and let it go back up.
If I did through homework on the 4 m’s and I’m highly certain the stock will be around in 10 years, has a wide moat, and is run by great leaders, than I buy more.
5) Watch your portfolio go up!
Market pull backs are always shorter than you think. Here are a few examples…
The recession in 2008 only lasted 1 year. The s&p 500 went down 38% in 2008 but it went up 23% in 2009. Although it wasn’t back to its all-time high, if you would have owned On Sale stocks that year, you could have made some massive returns!
The market pull back in march of 2020 due to covid-19 lasted a few months. The s&p 500 went down 30% in march of 2020 and by June of 2020, it already achieved a record high.
Pull backs in the market don’t happen often. You should be prepared with cash on hand to buy on sale stocks as they drop. Taking advantage of opportunities like this can pay off big time!
And that concludes your training! These 21 tips have given you the information to manage your own investments, reduce risk, invest confidently.
As you can see, investing isn’t complicated when you have the right tool (Tykr).
If you have questions or want guidance with your own investments, we’re here to help.
Thank you for joining Tykr and we look forward to helping you achieve your investment goals.