How to Simplify Your Investments
by Teeka Tiwari 08/06/09
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Now That You're Focused, It's Time to Narrow That Focus
To narrow my focus even further, I chose just one ETF from each group and have become an expert in how each representative ETF trades.
Within my five favorite ETFs in the equity sector, I've further narrowed my focus to two to three stocks in each group. So from a global list of 12,000 stocks, I have now gone down to a very manageable list of five ETFs and 10 to 15 of their component stocks.
The moves in these stocks and ETFs are amazing. In the China sector alone, we've seen 100% moves in some of the ETFs!
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So, it pays to specialize -- in fact, it pays very well. Because just as quickly as the markets take them up, they tear them down.
When you start specializing by sector, you gain massive clarity and focus. This clarity provides tremendous confidence as you catch these securities on the way up and short them on the way down.
So, narrow your focus. Get clear about where you want to "spend" your mental focus and energy. Refine your approach to just a few sectors and a few big, liquid, volatile stocks in each of those sectors, and begin to get a feel for how they trade. Do the same for the ETFs that cover those sectors.In short, start to simplify your investment and trading choices.
Due to space constraints I can't go into the absolute detail of how why and when we pick sectors and their attendant stocks and ETFs. If my approach interests you, then you may want to take a look at the education course I created called "ETF Master Trader." In it, I break down every facet of our sector approach and show you exactly how to select the best sectors, stocks and ETFs.Go on to Part II of 8 Easy Ways to Boost Your Profits where I cover one of the biggest areas of confusion for new investors: How much money to place in a trade.
This market is packed with opportunities to make big money … if you know where to look. Find the hidden money-doublers in today's stock market. Learn more in your FREE Options Report.
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