Stock Investing

How To Always Pick A Winner When Investing In Stocks

This is the last article of the miniseries about the basics of investing in the Stock Market. In order to fully understand the mechanism behind choosing a good investment, make sure you check out the first three articles :

  1. The Stock Market – How Can You Make Money Investing In Stocks
  2. Value Investing – How To Master The Investing Game
  3. How To Eliminate The Risk Of Losing Money When Investing

In this article, I’m going to share with you my well-kept SECRET on how to always pick a winner when investing in the Stock Market and how to generate a passive income that could lead to your early retirement.

Investing in the Stock Market is not gambling!

The educated ones which know their way around the stock market make millions, some of them even billions. Once you have learned how to master the game, you would have achieved an important skill to help you grow your net worth.

Starting today you will be able to use my strategy which allows me to find the most profitable shares and you could be entering the game at the same time as the best investors do.

What Is A Hedge Fund?

According to Wikipedia, a hedge fund is a pooled investing fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio construction, and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing except to institutional investors, high net worth individuals, and others who are considered sufficiently sophisticated.

And these millionaires pay huge commissions to the hedge funds and, of course, they have big expectations. If the hedge fund doesn’t deliver, its customers who are investing walk away. Not all hedge funds are successful, but there is plenty that has been profitable for years.

How To Use For Free The Analyses Made By The Geniuses Who Work For The Most Trusted Hedge Funds?

The hedge funds have highly performant teams composed of the best analysts, mathematicians, statisticians, and physicists who study the data that comes from the market and put together all the information to find the most promising investment opportunities.

I’ve figured out this simple, yet powerful technique which allows me to copy their investments and lower the risk that is involved in the investing game.

This is the 3 steps method that I personally use and recommend:

1. Find a list of the most profitable hedge funds

For example, search on Google for “top-performing hedge funds for the last ten years”

2. Check out their stocks’ portfolios.

One of the hedge funds that I follow is Baker Bro’s, which invests mostly in biotech. I do a google search for the term “Baker Bro’s portfolio” and I usually pick the results that lead me to the NASDAQ website. In the NEW tab, search for the latest companies that were added to their portfolio.

3.Look for the price that the hedge fund has paid for the stocks.

If a hedge fund buys more than 5% of the stocks issued by a company, they have to declare it at SEC by submitting a form. These forms are available on the SEC website.

If you notice that the actual price is even lower than the price that was paid by the hedge fund, you can buy it even cheaper than the hedge fund did. And if you sell at the right time, you can make an even bigger profit than the millionaires that invested in that fund.

This is one way to filter out the thousands of companies listed on the Stock Market. Of course, you should add more filters, do technical analysis and make an informed decision.

But the most important thing is to take action and use the information that I’ve shared with you.

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