Ask Doc In 2011, our firm did something Porter still regrets.
At the time, Netflix had plunged nearly 75%... from about $42 per share down to $12.
The company – then known for its rent-by-mail DVD service – had just released its new online streaming service. Everybody in our office loved it. But none of our publications here at Stansberry Research officially recommended it.
It was a huge mistake. Since then, Netflix is up 1,500%. What's worse, we could have gotten in on those massive gains... had we paid attention to one simple indicator.
Recently, Porter sent his team hunting for a method that could have identified this huge rally... It's a continuation of his 18-year search: how to find triple-digit winners in a short period of time.
And earlier this year, one of Porter's analysts found an anomaly in the stock market.
It looked like a triangle... a certain pattern that developed when you compared certain prices for certain companies. Then the analyst realized that this triangle only appears during specific windows of time. And when it appeared, the stock often shot up 100% or more. (And it always produced a profit.)
Porter has said that "this is probably the most brilliant idea I've ever seen us produce."
On Wednesday night, the two analysts who made this discovery – what they're calling the "Golden Triangle" – explained why they believe this pattern could make you a fortune in the stock market.
If you missed the special presentation, you can still learn how to use the Golden Triangle and which stocks have the potential to generate huge gains.
Q: I recently watched a show on Amazon Prime about fasting. The show states that fasting could help cure several diseases and also help with chemotherapy outcomes. Do you have any info on this topic? – P.D.
A: Researchers found that fasting just one day a month can cut your risk of heart disease by 58%. The belief is that fasting shrinks fat cells and prevents insulin resistance. This helps lower your risk of heart disease and even diabetes.
A few of my friends have tried the "five two" fasting diet. That's where you eat a regular diet five days a week and then on two non-consecutive days, you cut your calorie intake to about 25% of what you normally consume.
Personally, I fast a few times a month. I like to sip water and hot herbal teas on those days. I also make sure to cut back on vigorous activity and instead read, walk, and meditate.
I've also written in my book, The Living Cure, about the benefits of fasting while on chemotherapy. Fasting deprives your cells, including the cancerous ones, of energy. Healthy cells slow down to preserve themselves, but cancer cells can't do that. You can buy a copy right here.
Q: Is the 25% stop loss action based on my cost of the stock, or 25% of the daily quote price? Which makes it change daily. – K.C.
A: There are two types of stop losses: hard stops and trailing stops.
Hard stops are based on a set price or percentage below the purchase price. If the stock falls to that amount at any time, you sell. Let's say you purchase WidgetMaker shares at $10 and set a 20% hard stop at $8. No matter what the stock price rose to for WidgetMaker, once it fell to $8, you would sell.
Trailing stops are based on a percentage below the purchase price, but they don't stay the same. As the price rises, the trailing stop follows it. For a trailing stop, let's say you would initially set it at 20% below your purchase price. So for WidgetMaker, you'd start out at $8, the same as a hard stop.
Here's the difference... As WidgetMaker's price rises, the trailing stop also rises. So if the stock rises to $11, the stop would rise to $8.80. If WidgetMaker kept going up to $15, the stop would be $12.
Trailing stops only adjust upward and stay set on the highest price the stock hits. So in this example, if the stock hits $15 and then goes down, you would sell at your trailing stop of $12. But suppose the stock falls to $12 and you sell, and then it shoots up much higher. In that case, you've still made a $2 profit ($12 minus your $10 purchase price), but you've forfeited any future gains.
Have an investing question you want answered? Send it to us at [email protected].
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What We're Reading...
- 99% of investors don't do this... Here's how to be the 1%.
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- Something different: This fellow wanted payback for collectors calling about a debt he didn't owe... He got it – and uncovered a conspiracy.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Retirement Millionaire Daily Research Team
Baltimore, Maryland
December 8, 2017