Above All, Protect Your Capital

[Cycles Trading With Phil Anderson]( Welcome to Cycles Trading with me, Phil Anderson. My aim with this three-day-per-week e-letter is to introduce you to the most powerful knowledge for building wealth. And that’s the 18.6-year real estate cycle and its key relationship to stocks. Every 18.6 years, property, economy, and stock markets move through a repeating series of peaks and troughs – like clockwork. And the market has followed this cycle for over 200 years. Using this knowledge, I’ve been able to forecast every major market move over my 34-year career. If this is your first time tuning in, catch up on my[background]( how I [predict the markets]( and how I’ll help you avoid [false alarms]( from the mainstream media. Above All, Protect Your Capital By Phil Anderson, Editor, Cycles Trading with Phil Anderson Let’s get practical today. In the past, I’ve talked about how my [18.6-year cycle]( helped me understand the markets and invest. It was the biggest breakthrough I have made as an investor, and it helped me and my readers immensely. But today, I want to talk about the investing process. Namely, how to make sure that you protect your capital and remove any emotion from your trading. Emotions get in the way… this is why I don’t rely on any “hunches.” From a bigger perspective, I use the 18.6-year cycle to guide my knowledge of where the economy and the stock market are headed next. From a practical standpoint, when I invest, I am aware of two emotional risks… Recommended Link [This A.I.’s predictive power can bring you a rich retirement]( [image]( A brand-new A.I. algorithm recently came onto the scene that can predict stock prices one month into the future with astonishing accuracy. Imagine if you had this kind of predictive power. It could be a complete retirement gamechanger. [Click here]( to get the full story and to see what this algorithm is saying the price of AAPL, NVDA, TSLA will be one month from now [Click here to learn more.]( -- This Advice Could Put You Ahead of the Investing Crowd On the one hand, you need to take profits when they’re due. If you buy shares of a company and it doubles, you need to take some money off the table and let the rest work for you risk-free. For example, if you buy a stock at $5 and it doubles, sell half. By doing this, you recover your initial capital, and now you’re playing with “house money.” This is your “risk-free” upside. And nothing should give you a greater sense of calm as knowing that even if everything goes wrong with the second half of your trade, your original capital is safe. Nothing. On the other hand, you need to use stop-loss orders. [In 20 years, this little-known trader didn’t have a single losing year…]( Letting your losing positions sit there destroys morale and capital. “Ηope” for an eventual rebound is toxic. You may never see your position recover, and you’ll be anxious in the meantime. This is why we use stop losses. The Stock Market Is Not a Supermarket A lot of people approach the stock market like it’s a supermarket, always looking for bargains. This is precisely the wrong way to trade. They get caught up in the idea they’re paying a high price for a stock. At my [brand-new newsletter The Signal]( we search for new highs… combined with chart analysis and matching the sector to the stage of the 18.6-year real estate cycle… and we ride them up. We don’t aim to “buy low and sell high,” we aim to “buy high and sell higher.” But if a stock doesn’t move how we expect it to… we’re getting rid of it, no questions asked. Just like firing an employee who’s putting out subpar work. We’ll always stick to this principle: “an uptrend should never become a downtrend.” And that’s why trailing stop losses are the best way to manage risk. The Best Way to Manage Risk Trailing stop losses work like this… If you buy shares of a company at $100 and decide to put a 15% stop loss on the position, your position will be sold if the share price drops to $85. But let’s say the stock price rises to $120 before that. Since you set up a trailing stop loss order, now your sell price is adjusted to $102. The 15% trailing stop loss is adjusted to the highest price the stock gets to. So even if the share price dips by 15% and your sell order gets triggered, you’ll sell your shares at a 2% profit. Trailing stop losses are like an automatic braking system for your car. You need them for every “buy” order you place. (Call your broker and ask how to do it if you don’t know how.) They can definitely save you from a crash… so use them. Regards, [signature] Phil Anderson Editor, Cycles Trading with Phil Anderson --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Cycles Trading Feedback). IN CASE YOU MISSED IT… Millionaire Trader Reveals: [How to Make One “Backdoor” Currency Trade – Every Month – And Start Making All the Money You Need to Fund Your Retirement]( [Click here for the name of the currency trade.]( [image]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. 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