The No. 1 Mistake Amateur Investors Make

Amateur traders make this mistake all the time. And it's one of the fastest ways to lose money in the market... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] The No. 1 Mistake Amateur Investors Make By Chris Igou, analyst, True Wealth --------------------------------------------------------------- Amateur traders make this mistake all the time. And it's one of the fastest ways to lose money in the market... It has ruined more portfolios than almost any other mistake an investor can make. But that doesn't have to be you. All you need to do is follow this one rule... It's extremely simple. But if you put it to use, it can save you a lifetime of investment misery. No matter how good an investment is, don't buy it if the crowd is already "all in." You see, the crowd is always late to the party. They miss the huge run-up in price and buy once the big gains are in the rearview mirror. That's usually the best-case scenario for the herd. But it gets worse... --------------------------------------------------------------- Recommended Links: [Do NOT Buy Bitcoin (BTC) Until You See This]( Bigger than bitcoin... take advantage of the most important (and profitable) disruption in the history of the crypto world. A way to generate annual income of 10% to 35% – PLUS capital gains of 1,000% to 2,500% – WITHOUT having to worry about the volatility of cryptos. Don't miss this. [Click here for details](. --------------------------------------------------------------- [Here's the Exact Day Stocks Will Crash in 2021]( Stocks are going haywire – and a small group of investors just got advance notice of a major shift coming to the financial markets. If you have ANY money in stocks right now, this changes everything. [Click here for details](. --------------------------------------------------------------- Once these traders are all in, that often signals a peak is on the horizon – and that a major downturn will follow. Let's take a look at a recent example of this to see what I mean... Coffee prices are up roughly 100% since bottoming in June 2020. That impressive run-up hasn't gone unnoticed, though. After its huge move higher, traders poured into the commodity. We can see this through the weekly Commitment of Traders ("COT") report for coffee. The COT report gives us an inside look at what futures traders are betting on in real time. Under normal circumstances, this indicator doesn't tell us much. But when futures traders are all betting in one direction, it can be a great contrarian tool. That means when these traders all agree, you want to make the opposite bet. Today, these speculators are all betting that coffee prices will continue to soar. Take a look... Today's sentiment is near record highs. And similar cases have happened just a handful of times in the last two decades. For example, we saw record bullish bets on coffee in 2008, 2014, and 2016. Each led to lower coffee prices over the next year. Check it out... Speculators were dead wrong in all of these cases – coffee prices tanked shortly after these previous extremes. The first example of this was in 2008 when the commodity fell about 30%. The 2014 example had a similar result. After speculators piled in on the trade near the top, the bottom fell out... and the commodity dropped 51%. These traders never seem to learn from their mistakes, which cost them again in 2016... Speculators placed record bullish bets that November. And again, coffee prices tanked, falling 40%. This is just one example of amateur traders going all in at the worst time. But the rule applies to nearly every asset you can invest in. Once the crowd is all in, that makes it a trade to avoid... regardless of how good you think the investment is. Good Investing Chris Igou Further Reading "The takeaway is, to make big money through investing, you have to be willing to buy an asset when nobody cares about it, and sell it when everybody loves it," Steve writes. No matter what asset you're investing in, it pays to go against the herd. Get the full story here: [The Simple Moneymaking Investment Formula](. This is not the time to bet on a slowdown for Mr. Market. In the thick of a rally like today's, it's important to remember that bull markets don't die of old age. The Melt Down is coming... but the market isn't out of steam just yet. Learn more here: [This Year's Powerful Start Could Lead to More Gains in U.S. Stocks](. INSIDE TODAY'S DailyWealth Premium It's time to leave this old investor obsession behind... This has been a common misconception for decades. But those who understand the truth can secure stronger results in any market... [Click here to get immediate access](. Market Notes THE CLOUD-TECHNOLOGY TREND PRODUCES ANOTHER WINNER Today, we're looking at a company that's thriving as folks work together online... Regular readers know we love companies that take part in big, secular trends from [semiconductors]( to [electronic payments](. The "cloud" has quickly become another of the world's biggest tech trends, allowing folks to access data and software over the Internet from any device. And many of them count on this company when they do it... Dropbox (DBX) is a $10 billion cloud-storage company. Customers use it to share, store, and back up their files. With more industries looking to store their data online, Dropbox has developed a diverse customer base that includes colleges, retail stores, and construction companies... And its massive reach has helped it perform well. In its most recent quarter, Dropbox sales hit nearly $512 million, up 12% year over year. As you can see, DBX shares are up about 40% over the past year... And they just hit a fresh multiyear high. As more industries catch on to the cloud trend, DBX should continue to succeed... --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers’ feedback. To help us improve your experience, we’d like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. You’re receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberrycustomerservice.com. Please note: The law prohibits us from giving personalized investment advice. © 2021 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or [www.stansberryresearch.com](. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors. Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.