Turning $10,000 into $2.7 Million
Friday, April 6, 2007 | Teeka TiwariRating:
Editor's Note: Today we decided to give Teeka a respite and re-publish one of his previous articles. As you read this, he's in what we here at Tycoon jokingly call "The Matrix" ... putting the finishing touches on a letter that he'll be sending out on April 16th to all of you who've joined his Inner Circle VIP waiting list.
In just 10 short days, Teeka will be revealing the secret to using ETFs to turn a paltry $10k trading account into a nest-egg worth more than $2.7 million.
I've gotten a few emails of the "yeah, right" variety concerning these numbers. After all, you probably see outrageous profit claims every day from one guru or another.
I understand - and actually applaud - skepticism. But remember who you're dealing with here.
As a firm, Tycoon was created to help individual investors, and any one of you who's read The Tycoon Report for any amount of time can personally attest to the fact that we are not in the business of outrageous, indefensible claims.
So I selected the following article from Teeka's archive to show you exactly what I mean ...
It wasn’t until I read this study below that I truly appreciated the profit power of sector rotation.
$10,000 invested into the S&P 500 back in 1990 and left there until 2004 would be worth $34,293. Not a bad return for what is essentially a passive ,“no-brainer” approach to investing. However, if you owned the best performing sector each year instead of just the S&P 500, your PROFIT would have BALLOONED to a whopping $2,726,652!!
When I read this, I absolutely had to find an approach that would ensure I was always in the right sectors at the right time. My analysis told me that these were not pie-in-the-sky numbers; these were attainable investment profit goals.
By now, you can probably guess that I did, in fact, find my “Rosetta Stone”. The key that would ensure that my clients and I were always in the best performing groups when the risk was LOWEST and the PROFIT potential was HIGHEST!
Well, I happened to stumble upon a little known form of technical analysis, essentially a lost art form that, once followed, absolutely guaranteed our success. I am, of course, referring to Point & Figure Analysis.
ONCE I WAS BLIND, NOW I CAN SEE, John 9:24-25
Like a man who has seen the light, I can never go back, nor can I ever imagine investing without these tools. Using statistical regression testing, this approach has been extensively back-tested using historical price data. What does that mean in English? It means that by strictly adhering to the principles of this approach, my average trade on the long side is profitable 83.7% of the time! On the short side, it’s even better: it’s 86.9%!
So, by now, you should be able to see that without a clear, usable methodology to guide you in selecting the right sectors, you're going to be leaving massive profits sitting on the table.
The market doesn’t care who makes this money. Many investors personalize their experiences. DON’T!
There is a limitless supply of money for you to make. Having a methodology in place that will absolutely insure that you’re participating in these sector moves will make you a millionaire many times over.
The key to investment success is finding an investment approach that works for you, and sticking with it through thick and thin.
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Teeka Tiwari
Chief Investment Officer
ETF Master Trader
