Two Ways to Invest Like the World’s Best Traders
Two Ways to Invest Like the World’s Best Traders by Justin Spittler – Casey Research
Justin’s note: Today’s essay will help you make superior gains in a shorter time period. And you don’t need to spend countless hours tracking the market’s every move to do it…
As Palm Beach Daily analyst Nick Rokke shows, you can start investing like the “Big Boys” by simply following his two strategies below…
By Nick Rokke, analyst, The Palm Beach Daily
Peter Lynch is famous for coining the term “10-bagger.”
A 10-bagger is a stock that rises 10 times in value after you buy it.
Lynch even wrote a book about finding these elusive types of stocks called One Up on Wall Street.
It’s one of my favorite books on investing… If you’re a serious investor and haven’t read it, go online and buy it right now.
Peter Lynch should be near the top of anyone’s list of greatest investors ever.
He ran the Fidelity Magellan Fund for 13 years. From 1977 to 1990, his average annual return was 29%. He crushed the S&P 500, which averaged 16% annual returns over the same span.
But here’s the thing…
Lynch rarely snagged any 10-baggers.
In fact, Lynch held on to the average stock for only four months. That’s usually not long enough to collect 10 times your money on a single position.
The truth is, if you want to generate higher returns in a shorter amount of time—like the pros—you’ll need to be a much more active trader.
These are guys who make multiple trades daily, weekly, or monthly.
Most people think that you need lots of patience to achieve 100%-plus gains. And usually, you do.
There’s no problem with a buy-and-hold strategy. After all, investing in quality, safe, and income-generating stocks for the long haul is one of our bedrock principles.
But we also like to play the market… and try to make gains in a few weeks or months that takes passive investors a whole year to achieve.
To actively generate profits trading like Lynch did requires a major commitment of time and effort, though.
Today, we’ll show you two ways to trade like the Big Boys with a few mouse clicks.
Two Means… Same End
Both active and passive traders try to make big returns. They’re basically different means to the same end.