The Market Will Sucker Punch You (If You Let It)
You know what the biggest difference between boxing and football is?
A boxer has to play both offense and defense, while a football player gets to specialize in one or the other.
The craft of investing is a lot more like boxing than football.
You’re gonna get some good shots in.
You’re also gonna take your share on the chin.
And when the bell rings, your success depends on the net difference between the punches you land and the punches you take – determined in part by how much “guts” you can muster through the torture.
Most people have a hard time balancing these two competing goals when investing.
A lot of people play it way too safe. They try to avoid volatility and risk altogether. They feel safe, but they never make any money.
I’ve also seen smart people invest far too aggressively.
They’re always swinging big, hoping to land that one knockout punch that ends the match. But when the knockout punch misses… they find themselves pitifully off-balance and unable to defend counterpunches.
If you let your guard down in either boxing or investing, you’ll get knocked on your a$$.
So, there’s a fine line between offense and defense. It’s a tricky balance to strike.
Finding the balance that works for you will be the key to your success.
How much risk must I take to reach my goals?
How much defense must I play to stay in the game?
These are the questions we grapple with as investors. So, let’s talk about how to strike the perfect balance between offense and defense.
I’ve designed a new strategy that does just that. It’s a simple system that instantly switches between offense and defense as market conditions warrant.
How I Designed the Simplest Trading System Investors Have Ever Seen
It’s not easy investing in today’s environment…
We’ve got access to markets all around the world…
We can buy stocks, bonds, mutual funds, ETFs, options… literally thousands of different things to invest in and hundreds of different strategies to keep track of.
And once you do find something to invest in, you still have to decide when to buy and when to sell… and get the timing darn-near perfect.
That’s why I’ve spent the past year back-testing what I call the “10X Switch”.
My goal with the 10X Switch was to find the safest and simplest way to play the market in both good times and bad.
I wanted a trade that was so easy it was literally like flipping a switch. You’re either in the market or you’re out.
It’s really that simple.
When stocks are rising and investors are happy, volatility is low.
And when uncertainty starts to creep in and markets turn lower, the fear gauge spikes, sometimes dramatically.
Volatility is driven by one thing only: investor sentiment. Because of this laser focus, when the volatility moves, it usually does so in a BIG way.
The 10X Switch tells me when to bet on either direction.
When investors are confident in the economy and the markets, they’re willing to take on more risk and invest more aggressively. This is what we call flipping the 10X Switch to “Risk ON.”
And when politics get murky, the economy gets jittery and investors get nervous, they’ll often remove money from the markets… so we flip the Switch to “Risk OFF.”
The 10X Switch
My extensive back-testing has shown that if you had started using the Switch in ANY RANDOM MONTH since all the way back to January 2005, and then continued using the strategy for five years, you would have made money 100% of the time.
The average total return over any five-year holding period since January 2005 was 1,043% versus just 41% for the S&P 500.
That’s enough to turn a $10,000 portfolio into $104,300 or a $100,000 portfolio into a cool $1 million!
In fact, just flipping the 10X Switch on or off when told could have resulted in you outperforming the average five-year return of the S&P 500 by a whopping 25-to-1 advantage!
For example, in 2016, we would have flipped the 10X Switch “ON” and “OFF” a total of eight times… and yet you could have seen your account grow by an additional 59.9% compared to just 9.5% for the S&P 500.
Let’s get into the details with another example…
September 1, 2005 to August 31, 2010
Let’s say you decided to buy stocks while markets were still rallying in 2005, a couple years before the Great Recession began…
- Buying and holding the S&P 500 would have resulted in a 14.4% loss as you dealt with a nearly 50% market meltdown and the early stages of the recovery. If you were brave enough to hold on, you would have lost only $1,440 of a $10,000 portfolio.
- But using the 10X Switch, you could have turned every $10,000 invested into $122,184 – despite one of the greatest market crashes in history.
All it takes to achieve these kinds of results is trading just two simple positions that trade just like stocks! You just flip the switch on or off.
And that’s how you can use the 10X Switch to make money as the market goes both up AND down.
I’ll share all the details and dozens of case studies with you on Monday, July 17th, during our special live event at 1 p.m. EDT. Don’t miss it.