I'm going to share with you one of the most powerful things I have ever read. It made me believe that anything was possible. And that whatever success I wanted to achieve, I indeed could achieve it.
It would not be without hard work. But the concept was simple. And I instantly knew it to be true.
They called it a secret. In fact, it was literally called “the greatest secret in the world”. And that secret was this: the key to success was that you only needed to be a small, measurable amount better than mediocrity to succeed.
Is that really true? In its simplest form it is. They went on to tell of why this was true. And in short, they described how most people give up on the meaningful things they hope to accomplish.
Success
I of course knew that true greatness would take a lot more than being just a few steps ahead of the pack. And that if you wanted to be the Michael Jordan of your profession, it would take a lifetime of dedication and being born with the right genes.
But most people don't need to be the Michael Jordan of anything in their life to have life changing success.
They only need to be a small, measurable amount better in the important things in their life.
Want to pass that test that will get you that promotion? Stick to your study times and don't blow them off for some silly TV show and you'll be better prepared to pass that test.
Want to lose weight? Have one less can of pop each day or one less sugary snack and watch how that can set in motion a metamorphosis.
Want to make more money in the stock market? If all you did was have one less loser each month, and replace it with one more winner, that could transform your portfolio.
You don't need to be as good as Warren Buffett to achieve your investment goals. By simply making a few changes in how you pick stocks, the extra results can quickly add up.
But you have to know where to begin.
Continued . . .
------------------------------------------------------------------------------------------------------
Access Opening to Zacks’ Private, Long-Term Portfolios
For the next 30 days, you are invited to see our restricted buys and sells in real time including Stocks Under $10, Home Run Investor, Value Investor, Income Investor, and more. You may also use Zacks Premium research and tools locked away from the general public.
You’re also welcome to download our just-released Special Report, Invest Like Warren Buffett. It reveals 5 stocks pinpointed by applying Mr. Buffett’s core investing secrets along with the timeliness of the Zacks Rank.
See Stocks Now >>
----------------------------------------------------------------------------------------------------
One Less Loser
Setting a goal to have one less loser may not sound exciting, but the results can be dramatic.
There are over 10,000 stocks out there. So be choosey. One of the best ways to put the odds of success in your favor is to focus on the top industries. Why? Because roughly 50% of a stock's price movement can be attributed to the group that it’s in.
That's why, oftentimes, even a mediocre stock in a top industry can outperform the strongest stock in a weak industry. In fact, in my testing I have found that the top 50% of Zacks Ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
If your last loser was in an underperforming industry, you were betting against the odds.
Instead, stick with the best performing industries and put the odds of success in your favor.
And when you do find yourself in a losing trade, get out sooner.
Nobody likes to take a loss. But don't let your unwillingness to do so ruin your portfolio. Smaller losses are easy to overcome. But big losses, like -30%, -40%, and -50% losers can devastate your portfolio, not to mention your confidence.
If you found yourself driving the wrong way on a one way street, you wouldn't keep driving the wrong way or speed up, you'd turn around and get off. Same thing with stocks. If you bought a stock expecting it to go up, and it's now doing the exact opposite, get out before you crash your portfolio.
One less loser, or even just deciding to take smaller losses, will immediately set you apart from the typical mediocre investor.
One More Winner
Now if you can replace that one less loser with one more winner, you'll compound your success even more.
First, stick with the investing style that's right for you. There are many different investing styles out there. The four main fundamental styles are Momentum, Aggressive Growth, Value, and Growth and Income. You can also apply Technical Analysis to any of these styles, and others as well.
But make sure you employ proven techniques to get the most out of each style. For example, if you're an Aggressive Growth investor; did you know that stocks with the highest growth rates perform almost as poorly as those with the lowest growth rates? It's true.
This is because the companies with the highest growth rates are often unsustainable. And once those sky-high growth rates start to come down, even though they may still be spectacular, the price of the stock will fall back down to earth as well.
For example, a company earning 1 cent a share that is now expected to earn 6 cents, has a 500% growth rate. But, if it receives a downward estimate revision to 5 cents, that’s a significant drop. Even though it still has a 400% growth rate, the estimates were just reduced by -16.7% and the price is likely to follow.
If you’ve ever wondered how a stock with a triple-digit growth rate could possibly go down -- that’s how.
Instead, stick with companies with growth rates above the median for their industry, but less than 50%. That range has produced some of the best results.
If you're a Value investor; do you know which valuation metrics produce the best results? Better yet, do you know what valuation ranges have the highest probability of success?
In my testing, I have found that the Price to Sales ratio (P/S) is one of the best valuation metrics out there. And that stocks with a P/S ratio of less than 1, by far, produce the highest returns. Between 1-2 still produce stellar results. And between 2-3 also outperform the market. But once you get over 4, there is a higher probability of losing on that stock than winning.
That, of course, does not mean all stocks with a P/S ratio above 4 will go down. But if the odds of winning are greater below 1 (or at least below 3) and worse above 4, then by simply focusing on stocks in the optimum valuation range, you are now one step closer to having one more winner.
And don't worry whether you've picked the best stock on the planet. In fact, the best stock on the planet today may not be the best stock on the planet tomorrow. But it doesn’t matter.
All you need to focus on are good stocks. Or just slightly better stocks than you're picking now to start seeing the kind of success you've always wanted.
And one small better decision will set in motion other better decisions. And before you know it, you'll be achieving your goals.
Stock Picking Secrets of the Pros
Picking better stocks and making better decisions is a lot easier when there’s a proven, profitable way to do it.
One of the best ways to begin picking better stocks is to see what the pros are doing.
Whether you’re a growth investor or a value investor, prefer fast-paced momentum stocks, or mature dividend producing income stocks, there are certain rules the experts follow to maximize their returns.
This applies to large-caps and small-caps, biotech and high-tech, ETF’s, stocks under $10, and everything in between.
Regardless of which one fits your personal style of trade, just be sure you’re following proven profitable methods that work, from experts who have demonstrated their ability to beat the market.
The best part about these strategies is that all of the hard work is done for you. There’s no guesswork involved. Just follow the experts and start getting into better stocks on your very next trade.
Where to Start
Here's a simple way to find more winning stocks:
I invite you to enjoy 30-day access to the long-term buys and sells of our Zacks Investor Collection.
This means you can look inside private portfolios for various investor styles from growth to value to income:
• Stocks Under $10 finds companies with low share prices that have vastly improving fundamentals and earnings outlooks. Buy early before Wall Street reacts, and then ride them for maximum gains. This exclusive portfolio cannot be subscribed to directly.
• Home Run Investor turns up the best Zacks Rank growth stocks for the long haul. This portfolio discovers companies with robust earnings momentum that leads to a string of quarter earnings surprises and a thriving share price.
• Value Investor tracks stocks selling at 25-50% discounts and pounces just as the market is starting to notice their attractiveness. Then it patiently rides winners to their maximum long-term potential.
• Income Investor leverages the Zacks Rank to find the best dividend-paying stocks and other income-producing investments for the long haul. The goal is outperformance with a smoother ride and lower risk.
• PLUS you can access ETF Investor, Top 10 Stocks hand-picked by our Director of Research, Zacks Confidential with hot buys, and Zacks Premium which gives you the full Zacks #1 Rank List, Equity Research Reports, our long-term Focus List and more.
From 2018-2019 these services have closed 103 double- and triple-digit gains. Your cost for full 30-day access? Only $1.
FREE BONUS: You are also invited to download our just-released Special Report, Invest Like Warren Buffett. It exposes 3 secrets followed by one of the world's greatest living investors.
Even better, this report also reveals 5 stocks based on those core principles plus the Zacks Rank. Valued at $99, it's yours free. Deadline is Sunday, November 17.
Start now with Zacks Investor Collection and Free Buffett Report >>
Thanks and good trading,
Kevin
Kevin Matras serves as Executive Vice President of Zacks.com and is responsible for all of its leading products for individual investors. He invites you to access the Zacks Investor Collection.
Image: Bigstock
One Little Secret for Big Results
I'm going to share with you one of the most powerful things I have ever read. It made me believe that anything was possible. And that whatever success I wanted to achieve, I indeed could achieve it.
It would not be without hard work. But the concept was simple. And I instantly knew it to be true.
They called it a secret. In fact, it was literally called “the greatest secret in the world”. And that secret was this: the key to success was that you only needed to be a small, measurable amount better than mediocrity to succeed.
Is that really true? In its simplest form it is. They went on to tell of why this was true. And in short, they described how most people give up on the meaningful things they hope to accomplish.
Success
I of course knew that true greatness would take a lot more than being just a few steps ahead of the pack. And that if you wanted to be the Michael Jordan of your profession, it would take a lifetime of dedication and being born with the right genes.
But most people don't need to be the Michael Jordan of anything in their life to have life changing success.
They only need to be a small, measurable amount better in the important things in their life.
Want to pass that test that will get you that promotion? Stick to your study times and don't blow them off for some silly TV show and you'll be better prepared to pass that test.
Want to lose weight? Have one less can of pop each day or one less sugary snack and watch how that can set in motion a metamorphosis.
Want to make more money in the stock market? If all you did was have one less loser each month, and replace it with one more winner, that could transform your portfolio.
You don't need to be as good as Warren Buffett to achieve your investment goals. By simply making a few changes in how you pick stocks, the extra results can quickly add up.
But you have to know where to begin.
Continued . . .
------------------------------------------------------------------------------------------------------
Access Opening to Zacks’ Private, Long-Term Portfolios
For the next 30 days, you are invited to see our restricted buys and sells in real time including Stocks Under $10, Home Run Investor, Value Investor, Income Investor, and more. You may also use Zacks Premium research and tools locked away from the general public.
You’re also welcome to download our just-released Special Report, Invest Like Warren Buffett. It reveals 5 stocks pinpointed by applying Mr. Buffett’s core investing secrets along with the timeliness of the Zacks Rank.
See Stocks Now >>
----------------------------------------------------------------------------------------------------
One Less Loser
Setting a goal to have one less loser may not sound exciting, but the results can be dramatic.
There are over 10,000 stocks out there. So be choosey. One of the best ways to put the odds of success in your favor is to focus on the top industries. Why? Because roughly 50% of a stock's price movement can be attributed to the group that it’s in.
That's why, oftentimes, even a mediocre stock in a top industry can outperform the strongest stock in a weak industry. In fact, in my testing I have found that the top 50% of Zacks Ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
If your last loser was in an underperforming industry, you were betting against the odds.
Instead, stick with the best performing industries and put the odds of success in your favor.
And when you do find yourself in a losing trade, get out sooner.
Nobody likes to take a loss. But don't let your unwillingness to do so ruin your portfolio. Smaller losses are easy to overcome. But big losses, like -30%, -40%, and -50% losers can devastate your portfolio, not to mention your confidence.
If you found yourself driving the wrong way on a one way street, you wouldn't keep driving the wrong way or speed up, you'd turn around and get off. Same thing with stocks. If you bought a stock expecting it to go up, and it's now doing the exact opposite, get out before you crash your portfolio.
One less loser, or even just deciding to take smaller losses, will immediately set you apart from the typical mediocre investor.
One More Winner
Now if you can replace that one less loser with one more winner, you'll compound your success even more.
First, stick with the investing style that's right for you. There are many different investing styles out there. The four main fundamental styles are Momentum, Aggressive Growth, Value, and Growth and Income. You can also apply Technical Analysis to any of these styles, and others as well.
But make sure you employ proven techniques to get the most out of each style. For example, if you're an Aggressive Growth investor; did you know that stocks with the highest growth rates perform almost as poorly as those with the lowest growth rates? It's true.
This is because the companies with the highest growth rates are often unsustainable. And once those sky-high growth rates start to come down, even though they may still be spectacular, the price of the stock will fall back down to earth as well.
For example, a company earning 1 cent a share that is now expected to earn 6 cents, has a 500% growth rate. But, if it receives a downward estimate revision to 5 cents, that’s a significant drop. Even though it still has a 400% growth rate, the estimates were just reduced by -16.7% and the price is likely to follow.
If you’ve ever wondered how a stock with a triple-digit growth rate could possibly go down -- that’s how.
Instead, stick with companies with growth rates above the median for their industry, but less than 50%. That range has produced some of the best results.
If you're a Value investor; do you know which valuation metrics produce the best results? Better yet, do you know what valuation ranges have the highest probability of success?
In my testing, I have found that the Price to Sales ratio (P/S) is one of the best valuation metrics out there. And that stocks with a P/S ratio of less than 1, by far, produce the highest returns. Between 1-2 still produce stellar results. And between 2-3 also outperform the market. But once you get over 4, there is a higher probability of losing on that stock than winning.
That, of course, does not mean all stocks with a P/S ratio above 4 will go down. But if the odds of winning are greater below 1 (or at least below 3) and worse above 4, then by simply focusing on stocks in the optimum valuation range, you are now one step closer to having one more winner.
And don't worry whether you've picked the best stock on the planet. In fact, the best stock on the planet today may not be the best stock on the planet tomorrow. But it doesn’t matter.
All you need to focus on are good stocks. Or just slightly better stocks than you're picking now to start seeing the kind of success you've always wanted.
And one small better decision will set in motion other better decisions. And before you know it, you'll be achieving your goals.
Stock Picking Secrets of the Pros
Picking better stocks and making better decisions is a lot easier when there’s a proven, profitable way to do it.
One of the best ways to begin picking better stocks is to see what the pros are doing.
Whether you’re a growth investor or a value investor, prefer fast-paced momentum stocks, or mature dividend producing income stocks, there are certain rules the experts follow to maximize their returns.
This applies to large-caps and small-caps, biotech and high-tech, ETF’s, stocks under $10, and everything in between.
Regardless of which one fits your personal style of trade, just be sure you’re following proven profitable methods that work, from experts who have demonstrated their ability to beat the market.
The best part about these strategies is that all of the hard work is done for you. There’s no guesswork involved. Just follow the experts and start getting into better stocks on your very next trade.
Where to Start
Here's a simple way to find more winning stocks:
I invite you to enjoy 30-day access to the long-term buys and sells of our Zacks Investor Collection.
This means you can look inside private portfolios for various investor styles from growth to value to income:
• Stocks Under $10 finds companies with low share prices that have vastly improving fundamentals and earnings outlooks. Buy early before Wall Street reacts, and then ride them for maximum gains. This exclusive portfolio cannot be subscribed to directly.
• Home Run Investor turns up the best Zacks Rank growth stocks for the long haul. This portfolio discovers companies with robust earnings momentum that leads to a string of quarter earnings surprises and a thriving share price.
• Value Investor tracks stocks selling at 25-50% discounts and pounces just as the market is starting to notice their attractiveness. Then it patiently rides winners to their maximum long-term potential.
• Income Investor leverages the Zacks Rank to find the best dividend-paying stocks and other income-producing investments for the long haul. The goal is outperformance with a smoother ride and lower risk.
• PLUS you can access ETF Investor, Top 10 Stocks hand-picked by our Director of Research, Zacks Confidential with hot buys, and Zacks Premium which gives you the full Zacks #1 Rank List, Equity Research Reports, our long-term Focus List and more.
From 2018-2019 these services have closed 103 double- and triple-digit gains. Your cost for full 30-day access? Only $1.
FREE BONUS: You are also invited to download our just-released Special Report, Invest Like Warren Buffett. It exposes 3 secrets followed by one of the world's greatest living investors.
Even better, this report also reveals 5 stocks based on those core principles plus the Zacks Rank. Valued at $99, it's yours free. Deadline is Sunday, November 17.
Start now with Zacks Investor Collection and Free Buffett Report >>
Thanks and good trading,
Kevin
Kevin Matras serves as Executive Vice President of Zacks.com and is responsible for all of its leading products for individual investors. He invites you to access the Zacks Investor Collection.