Let’s get something clear from the start.
If you’re an average private investor, then what I’m going to say is going to contradict almost everything you’ve read or heard about how to be a sensible investor.
Compared with mainstream investment advice, what I’m going to say is not just different. It’s the complete opposite.
I’ll be telling you things that the majority of investment advisors, professionals, gurus and financial journalists will say are unwise, misguided, deluded, foolhardy, costly, dangerous or impossible.
So it’ll probably take you a little while to adjust.
Please be patient. Don’t jump to any hasty conclusions. Please stick with me as I explain, because I believe you’ll find it incredibly worthwhile.
Though you might well say to yourself, “At last! Something that finally makes sense!”
That’s what I felt when I got the Saltydog system to work, and proved to myself that it did make money – and far more money than anything my financial advisors had ever achieved.
I’d like to begin with two key principles which underlie the whole Saltydog system.
According to our approach, to make more money safely:
- You actively respond to market trends, identifying the best sectors in the market and moving your money into them, and
- You actively manage your level of risk.
These two principles differ enormously from the way that most private investors – especially passive investors – think about the stock market.
First, market trends.
Most investors are absolutely helpless in the face of the ups and downs of the market.
They don’t think they can do anything about them except passively sit them out – even if the market drops by more than 45%, which has happened twice in the last fifteen years. The majority of investors assume you just have to sit and take it, watching your wealth shrinking by the day.
From this point of view, to try and take advantage of market trends would be “timing the market” – something that only whizz-kid traders can attempt. For anyone else it’s seen as impossible and not worth contemplating.
Essentially passive investors are trusting in the fact that over the very long-term - i.e.
decades - the market has always gone upwards… and hopefully will do so again.
Not very comforting if you don’t have decades ahead of you, is it?
There’s a very similar type of attitude towards managing the risks of investing – which is what our second Saltydog principle addresses.
The most common approach investors use to manage the risks of the market is also very ‘static’. In other words, they have a rough idea of which investments are more or less risky – e.g. small cap shares (risky), blue chip stocks (less risky), bonds (safer), cash (safest) - and they keep a certain percentage in each category, which probably never changes very much. Or if the percentages do change, it’s not for any particularly well thought-out reason.
The Saltydog approach is a complete contrast to this. There’s nothing passive or static about it. The practicalities will become clear soon. But what’s important to understand now is:
Saltydog is all about actively responding to market trends, in two main ways:
- You can ride upward market movements, and also get out of the downturns, and
- At any one time, there are some market sectors doing well and others doing less well or badly – and you can move in and out of these.
The Saltydog system is also about actively managing the level of risk in your portfolio, in response to changing circumstances – and according to clear, rigorous guidelines. (It’s not random, or based on personal whim).
Here at Saltydog, we believe this will make you more money. Our demonstration portfolio has proved it.
And it will do so without exposing you to unnecessary risks. In fact, we’re confident it will keep your money much safer.
Read next > PART 1 How to use the Saltydog system