By Matt McCallAug 16, 2017
My search for a better way to invest began as soon as I decided to make it my career. I knew investing was my passion, but I also knew as soon as I got my first job as a stock broker that the way Wall Street did it wasn’t right for me. Call me crazy, but I actually wanted to make money for my clients. They wanted me to make money for the firm.
That was nearly two decades ago now, and it started me on the path of developing the NexGen investing system that has been so successful for me, my money management clients and my subscribers through the years. And now, I’m super excited about the enhancements I’ve recently made to the system to make us even more money. Think of it as the next-gen of NexGen investing!
Let me start with the basics. Our biggest advantage – and what separates us from Wall Street and just about everybody else – is that we look at any potential investment through multiple lenses. Wall Street tends to limit itself to one layer of analysis. It works for them. They still make a ton of money even when their clients don’t. The Street uses what’s called a bottom-up approach, meaning they focus on the company. That’s fine in and of itself, but it’s really all they focus on, which is why they miss out on so many other important factors that go into making a good investment.
We go beyond Wall Street’s tunnel vision, and I know that’s the main reason we’ve been successful on such a high percentage of our investments – more than 80% over the last few years. Wall Street couldn’t come close to that.
Yes, we do a deep dive into the fundamentals like Wall Street, but that’s only one layer of analysis. We also rely heavily on charts and technical analysis to know when to buy and sell. This works for both longer-term holdings as well as shorter-term trades.
The third layer of analysis is the one Wall Street really misses, and it’s actually where I begin. It’s the really big picture – the catalysts set to drive a stock higher. Most often these are mega-trends that are changing our world. But catalysts can come in all shapes and sizes, like an acquisition, an innovative new product, a breakthrough drug set to be approved and more. I call these big-picture items the intangibles. It seems obvious how important they are, but believe it or not, they won’t show up in the stock screens used by 99% of Wall Street.
This is the system we use in the NexGen Investor and NexGen Trader services I launched earlier this year. I wanted to offer investors something new, exciting and most importantly profitable. I also wanted to help folks like you move on from the old ways of doing things that just make the fat cats richer while individual investors struggle to keep their heads above water. Our track record is a combined nine out of nine in the stocks we’ve sold since we started in May, so we’re doing exactly what we set out to do.
Here’s where I feel like I should be the announcer on a late night infomercial: But wait, there’s more!
No, I’m not introducing the latest and greatest stain remover or carving knife. But, in my never-ending quest to keep coming up with better ways to invest, I am introducing a new approach that takes the foundation of my investment system and adds new levels to make even more money. I call it NexGen Profit Multiplier.
It’s brand new – I literally just started it on Monday for a small group of select investors – and while I can’t give you all of the details, I’m so excited that I have to give you at least a taste of how it works.
Step 1: As we just talked about, my investment process is a top-down approach. I start with the big picture, which is those mega-trends changing our world. Within those mega-trends, there are sectors ready to make the biggest impact. The best way to invest most broadly in a mega-trend is through an exchange-traded fund (ETF), which is the first level of our Profit Multiplier. ETFs are baskets of stocks, and with their growing popularity, you can find one for just about any theme. Not all are created equally, so we need to look under the hood at the stocks within each ETF, but they are diversified, lower-risk ways to invest in a sector, theme or trend. They also give us access to NexGen themes not always available through individual stocks. These are solid longer-term holdings, usually many months or even longer.
Example: One of my favorite themes right now is online retail, and there is a good ETF called Amplify Online Retail ETF (IBUY). So I put it through my NexGen analysis and focused on five criteria: holdings, liquidity, expenses, technicals and intangibles. It passes on all counts at the moment, so it’s a matter of using the charts to find the right entry point, target and critical support level to watch on the downside.
Step 2: Here’s where we again separate ourselves from what everyone else is doing. Within each sector, and often within an ETF we may already own, there are stocks that are on the move. This is where our technical analysis comes in. Using the charts and what they tell us, we can hop on stocks set to move higher for shorter-term gains – probably several weeks to a few months – to add to the longer-term gains playing out in the ETF.
Example: Digging into the Amplify Online Retail ETF, I would look for stocks on the move to multiply our profits. My criteria here include support levels, relative strength, volume, fundamentals and intangibles. Shopify (SHOP) would be a leading candidate.
Step 3: Let’s keep going. Within those individual stocks, there are times when a chart will indicate such a strong certainty of a move – either up or even a very short-term pullback – that we can add in another profit multiplier: options. I know options sound scary to some people, but I’m not talking wild speculation here. That’s crazy in my book. There are simple, lower-risk strategies we employ to make fast and outsized profits on even small movements in the underlying stock. For example, an option we just added to the service would bring us 50% profits on just a 3.5% move up in the underlying stock. That’s why they are such a great profit multiplier!
Example: GrubHub (GRUB) is another top holding in IBUY, and it is potentially well-suited for options. My options analysis looks at charts of the underlying stock, options volume, the spread between the bid and ask prices (which can be dangerously wide in options) and the price and time to expiration for the contract. When all of those factors line up, we make our move and look to get out soon after that with nice, juicy profits.
As you can tell, I’m very excited about this new way to invest and make even more money. If it sounds interesting to you, I’ve made it possible for you to try NexGen Profit Multiplier at a discounted price. Simply click here to claim a risk-free Charter Membership before it’s made available to investors outside of the MoneyWire family.
Either way, we’ll continue talking in MoneyWire about all of the ways you can make even more money in your investing.
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