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Pro Investors Do This... Amateurs Don't (But They Should)

By Marc Chaikin, editor, Power Gauge Investor


Investing isn't easy. Don't let anyone tell you otherwise.

Having access to the most powerful analytical tools available helps – a lot. Great investing requires great data and evidence-based analysis. But there's something more basic underneath that, too...

It determines, right from the outset, whether or not an investor will find long-term success in the markets. And it's frustratingly simple...

I'm talking about having a process.


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Seriously, every successful investor has a process. None of these big shots just shoot from the hip.

Sure, on TV, these high-profile investors might come across as cavalier. But don't let that fool you... They all have a process. Having a repeatable process is simply the way to be successful on Wall Street.

I know, I know... this might sound painfully obvious. Or it might sound like a Yogi Berra truism. But I can't count the number of times I've talked to individual investors who have little to no process. It's shocking, really.

Think about it...

Most everyday investors have goals. And some even have a general workflow. Despite that, the majority of the folks I've come across just kind of "poke around for opportunities."

The truth about great investing is that it's tedious...

In fact, it's so tedious that most mom-and-pop investors simply can't keep up with it. I don't blame them. It's a monumental task.

Be honest... Do you have a defined exit strategy for every stock you own? Is it written down? And is it more than just saying, "I'll take gains when it feels right"?

Even after you decide all of that, you have to deal with a flood of information for every stock in your portfolio. The world doesn't stop when you buy a stock.

What about earnings reports? Do you take those into account? How about insider activity or expert analyst ratings?

We've just scratched the surface. And I bet it already feels overwhelming.

Even if your investing strategy is technical in nature (meaning it's based on the price action of the stock instead of business fundamentals), you're still confronted with mountains of information.

Unless you love spreadsheets, it's probably too much. And most mom-and-pop investors end up making compromises. They rationalize "gut feeling" decision-making.

That might work occasionally. But it's not a path to consistent success. Again, the foundation of reliable success on Wall Street is having a process...

This is why I developed the "Power Gauge" system.

The Power Gauge crunches data on 20 individual factors, as I explained last week. And it puts out clear and actionable recommendations based on those factors. The Power Gauge has a process built into it.

Imagine that a friend turns you on to a small-cap stock. It's getting almost no attention from analysts. But the story he tells you about it sounds great...

You want to invest. And you're about to click "buy." But then, you notice the company's earnings are just a week or two away.

If you're like me, just thinking about taking a big hit on an earnings play makes your stomach turn. Your friend made the stock sound like a great opportunity... but you don't want to lose your shirt.

So... what's your process? How do you evaluate a situation like this?

With our Power Gauge, you have industry-leading quantitative tools at your side. You can drop in the ticker and get an instant reading – a reading that takes the company's earnings trend into account and will put you ahead of the crowd for your decision-making.

You don't have to use the Power Gauge to succeed in investing. But I know where many individual investors suffer...

The issue isn't finding great ideas. Instead, the problem is having a process for owning them... and for knowing what to do as things change.

The Power Gauge solves that problem. But even if this tool isn't for you, make sure you have a process when investing.

Understand why you're buying... and what you'll do if and when things change. Have a plan for when you'll sell, and stick to it.

If you can do those things, you'll be a much more successful long-term investor.

Good investing,

Marc Chaikin

P.S. Today's the last day you can check out my presentation detailing exactly how the Power Gauge works. I also share how you can use it to find triple-digit winners in the market, time after time. I urge you to check this out if you haven't already... Because it's going offline at midnight tonight. Click here to watch it now.

Further Reading

In his quest to level the playing field for individual investors, Marc has created an incredible tool. Read his real-life example of just how powerful it can be right here: Giving Jon Najarian a Great Call.

The "smart money" has an unfair advantage. And if you want to have a fighting chance in the markets, it pays to know what they're doing. That's why Marc focuses on this one tool to "look over their shoulders"... Read more here: This Is Like Sitting in on Private Board Meetings.

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Market Notes

HIGHS AND LOWS

NEW HIGHS OF NOTE LAST WEEK

Nvidia (NVDA)... chipmaker
Automatic Data Processing (ADP)... payroll giant
Intuit (INTU)... tax-prep software
American Express (AXP)... financial giant
JPMorgan Chase (JPM)... financial giant
American Homes 4 Rent (AMH)... rental properties
CBRE Group (CBRE)... real estate services
Invitation Homes (INVH)... real estate "landlord"
Public Storage (PSA)... self-storage REIT
ABB (ABB)... automation
Crown Castle (CCI)... 5G infrastructure
Motorola Solutions (MSI)... telecom
Coca-Cola (KO)... beverage giant
Rayonier (RYN)... timberland
Hess (HES)... oil and gas

NEW LOWS OF NOTE LAST WEEK

Heartland Express (HTLD)... trucking