The-Wiseguy’s marvellous strategy to making a 40% annual return.
Loyal readers will have discovered that we used to have a 35% a year return but since that is already accomplished we now aim for a 40%. To find out how just follow these simple steps and read our blog posts. This is an ever-evolving website for now the information is succinctly but short. In due time we will keep adding more Information and explain the steps more thoroughly to make you wiser and wiser untill you to are a wiseguy !!!
Step 1. Wiseguys – Find stock that are 50%/5y !!
We look for shares that have a minimum gain of 50% a year for a period of at least 5 years. That is the hard part. There are tens of thousands of companies scattered over many markets. Finding the best/fastest growing companies with a proven track recoird is difficult. Only a few will make it. At any given time we have about 10 to 20 companies that qualify for this criteria. We call them our Wiseguys. You can find them in The List page. As soon as we have found new we will post them on the website.
Step 2. Patience – Buy the dip !!
Pure on technical analysis we keep track of all the charts to find the perfect time to buy the shares. Timing is everything and can mean the difference between a huge profit or a loss. Patience is the calm acceptance that things will happen as expected. When and if we see buying signals well post them on the website. Just keep checking the order overview posts. Good timing is invisible, bad timing sticks out a mile.
Step 3. Restraint – Cash is king !!
Do not put all your eggs in one basket. Diversify between cash and stock will protect you from harm. There will always be opportunities to buy and in that case you will need the cash. Register to our website and keep track of our messages.
Step 4. The traffic light – Buy, hold or sell!!
We have developed a traffic light system to keep track of the indexes. That is our way of telling how the general economy is doing. Red means sell, Orange is watch-out and Green means let them run. By keeping track of certain indexes we can see how the markets are behaving. Because of that we can predict wheter to buy, hold or sell. What percentage of our total funds we keep in stock and what percentage we keep have to keep cash. That’s why it is really important to read our posts.
Step 5. Protect – (trailing) stoploss orders !!
Maintaining your stop-loss orders will save your life. Buying stock is hard but it is even harder to predict when to sell. We keep stop-loss orders and continously update them. So when something happens we can protect our profits by selling at the right time. And off course you can find our buy and sell orders on the website. One last time. Stay updated read our posts.
Step 6. Learn the rules lika a pro, So you can break them like an artist !!
Someone once told me: “Draw TA lines not with a delicate pencil but with a thick black marker” (BillBull 2017). Meaning that there are no sharp clear signals accurate on the cent, but that you have to interpret the rules as a whole. Occasionally you will see that we buy stocks that are not in the list of wiseguys. There are several reasons for this. Sometimes companies have not existed for 5 years or sometimes they offer a 49.9% return instead of 50%. In such cases it is important that you can also deviate from the rules. For example, we bought Shopify and Zoom (returns over 100% per year) because they didn’t exist long enough. But are they therefore bad shares, no. “Know the rules well, so you can break them effectively”