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The Sjuggerud Secret to Triple-Digit Gains

By Brett Eversole
Monday, October 14, 2013

The opportunity for triple-digit gains doesn't come around often.
 
But my colleague Steve Sjuggerud has discovered what he calls "the secret to triple-digit gains."
 
By using this secret, he's able to eliminate a mistake many investors make that guarantees they won't cash in a big winner. And if you put this secret to work today, you'll be in position to make the most of your winning trades...
 
The secret to triple-digit gains is simple: Cut your losers short, and let your winners run.
 
I know that sounds basic. But the truth is, many investors just can't get it down. They want to close a trade once they see a little profit. And they ride their losers down farther and farther... waiting and hoping for a rebound that rarely comes.
 
Steve's True Wealth readers have executed this "secret" perfectly through shares of Blackstone Group (BX). Blackstone is one of the planet's biggest "alternative" asset managers. Basically, people pay Blackstone to manage their money for them.
 
Steve recommended buying shares back in November 2012. And as you can see in the chart below, Blackstone soared over the next six months. But selling early and taking profits off the table would have been a big mistake...
 
 
After climbing so much, Steve figured Blackstone was due for a correction. So when shares fell 16% over the summer, he didn't tell readers to sell. (Of course, we closely watched our trailing stops. But the story hadn't changed, so we didn't sell early.)
 
As you can see from the chart above, Blackstone shares have started to soar again. Steve's True Wealth readers are up nearly 100% in around 11 months.
 
That kind of gain doesn't come around often. But it will never come around if you sell your winners early. You can't make 100% gains by cashing in when you're up 10% or 20%.
 
Stocks are up more than 40% over the past two years. So you may be sitting on winners like Blackstone in your portfolio. And you'll have more winners throughout your investing career. That's why it's vital that you hold those winners and make big money rather than sell too early and take a small profit. It's a simple lesson... but it's so important, Steve calls it his "secret to triple-digit gains."
 
Good investing,
 
Brett Eversole




Further Reading:

If you're like most people, you have trouble deciding when to take some money off the table. Dr. David Eifrig says "the strategy for selling is determined by why you bought in the first place." Learn how "Doc" plans his trades here: Before You Sell a Single Share of Stock, Read This.
 
Steve Sjuggerud urges readers to put as much thought into their exit strategy as they put into the decision to buy an investment. And if you're concerned about potential losses, Steve calls The Trailing Stop Strategy "the best last-ditch measure to save your hard-earned dollars."

In The Daily Crux
Market Notes
It's a bull market in "offense contractors"... sector fund ITA is up nearly 70% over the last two years.
 
German, Japanese, and Italian stocks are all up 15%-plus this year.
 
Gold and silver continue to fall... prices are down another 10% over the last two weeks.
 
Steelmaker U.S. Steel is up more than 35% since April.
Market Watch
Symbol Price
Change
52-Wk
S&P 500 1703.20 +0.6% +18.9%
Oil (USO) 36.75 -0.9% +7.2%
Gold (GLD) 122.60 -1.3% -28.4%
Silver (SLV) 20.52 -1.5% -37.6%
U.S. Dollar 80.30 -0.2% +0.8%
Euro 1.36 +0.4% +5.0%
Volatility (^VIX) 15.72 -4.6% +0.8%
Gold Stocks (^HUI) 212.18 -2.4% -57.9%
10-Year Yield 2.68 +0.0% +60.5%

World ETFs
Symbol Price
Change
52-Wk
Japan (EWJ) 11.94 +0.2% +35.4%
Israel (ISL) 16.30 +1.8% +28.5%
USA (SPY) 170.26 +0.6% +21.4%
Taiwan (EWT) 14.58 +0.2% +14.2%
S. Korea (EWY) 63.87 +0.7% +11.4%
China (FXI) 38.36 +0.6% +9.4%
S. Africa (EZA) 65.70 +0.9% +5.4%
Singapore (EWS) 13.62 +0.4% +5.4%
Canada (EWC) 28.51 +0.4% +1.3%
India (IFN) 20.72 +0.9% +0.3%
Russia (TRF) 15.23 -0.6% +0.0%
Lat.America (ILF) 39.56 +0.9% -4.8%

Sector ETFs
Symbol Price
Change
52-Wk
Alt. Energy (PBW) 6.58 +2.5% +65.4%
Defense (PPA) 27.81 +0.8% +42.7%
Biotech (PBE) 34.30 +0.1% +42.6%
Media (PBS) 23.36 +0.7% +41.7%
Retail (PMR) 33.87 +1.6% +38.0%
Transportation (IYT) 118.85 +0.5% +35.3%
Semis (PSI) 17.40 -0.6% +32.2%
Industrials (IYJ) 91.23 +0.6% +31.7%
Construction (PKB) 20.48 +1.6% +30.8%
Consumer Svcs (IYC) 110.74 +0.8% +30.7%
Health Care (IYH) 107.81 +0.7% +28.7%
Financials (IYF) 74.80 +0.7% +27.2%
Water (PHO) 23.88 +1.2% +24.6%
Software (PSJ) 32.90 +1.1% +20.7%
Big Tech (QQQQ) 79.21 +0.8% +20.4%
Insurance (PIC) 19.01 +0.1% +18.3%
Telecom (IYZ) 28.13 +1.0% +14.6%
Nanotech (PXN) 6.98 +0.9% +14.2%
Basic Mat (IYM) 75.06 +0.8% +13.2%
Utilities (XLU) 38.12 +0.5% +8.0%
Real Estate (IYR) 65.23 +1.0% +5.6%

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