FROM THE DESK OF PORTER STANSBERRY
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The results can be absolutely incredible. Just look at this chart. The black line shows the original performance of an actual investor who lost more than $100,000 over about an eight-year period. The blue line shows what this same exact same time and ONLY changing the amounts invested so that more money went into the safer stocks using the Position Size Calculator… This tool helps you determine the position size of one stock or multiple stocks at the same time. investor could have made on the exact same stocks, bought and sold at the It never fails to amaze me that something so simple as changing the amounts you invest could have such a profound impact on your results. Here’s another example of a real investor’s portfolio we analyzed... In this case the
PORTER: Just to be clear, Keith... In those charts you showed, nothing changed about when the investor bought or sold the stock... and the stocks didn’t change either. All that changed was how much was put into each stock, based upon their VQ? KEITH: That’s exactly right. PORTER: Well, I want to just put a stop to the proceedings because having worked with everyday Americans who have money in the markets and been an investor for 30 years, the two mistakes that everybody makes is that they sell their winners… they hold onto their losers… and you’ve built the VQ to help deal with that problem. The other problem, which is related, is that they put way too much of their portfolio into really volatile stocks. KEITH: Yes. PORTER: And they claim, of course, that they’re gonna have the risk tolerance to handle it, but nobody can. And so if you cure those two things, I bet you there isn’t anyone you can’t turn into a very good investor. KEITH: Porter, we have looked at portfolios. We’ve seen people who buy what I would call terrible stocks at the worst time and sell those terrible stocks at the worst time. And just by applying these things, we’ve turned massive losses into runaway winners. It’s incredible. AMY: That’s remarkable. And the Position Size Calculator is built into Trade360 ? KEITH: It is. Each of the tools I’m mentioning today are all in the same place, on the exact same website. PORTER: I can’t emphasize this point enough – everyone should be using this technology to track their investments . In fact, I would go so far to say, is if you’re not willing to use Trade360, then you really should not have any money
investor had started with an account of about $113,000. And over a 15-year period, this investor’s portfolio had lost
$36,000. But by making one change, using risk-adjusted position sizing, instead of losing nearly 30% of their money, they could have actually grown their portfolio by 56%. Remember, that is buying the exact same stocks at the exact same time. It’s incredible when you see the difference this one change can make. I could show you dozens of back tested
examples like this. Like this investor, who could have turned an $81,000 loss into a $228,937 gain... Or this investor, who could have turned a $70,000 loss into a $130,000 gain... But you get the point. It’s so important.
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