No one has a crystal ball to predict which stocks will go up the most, and nobody can predict which stocks won’t live up to their potential.
That’s why: Rule No. 1: Never make an all-in bet on one stock.
Remember, the volatility of one stock is always higher than the volatility of your overall portfolio.
Because of that, we believe that you have the best chance at big gains if you hold, at minimum, five to ten of our recommendations in your portfolio.
That way, should any single stock go down due to the natural price fluctuations of the market, you’re less likely to be affected because your winners will outweigh any possible losses.
In Profits Unlimited — our America 2.0 model portfolio — we have 43 open positions.
Not every stock will be a winner or rise and fall in the same straight line.
And we’ve seen volatility in all of them before.
It’s not new.
Jason from the Strong Hands Nation even asked:
Paul. Just curious … can you give us one or two examples of companies (stocks) that lost 60%-75% of their value and then recovered completely and turned out to be an excellent investment? As you know, a stock that declines 60% in value has to go up about 150% just to break even. Thank you for considering this question.
Paul replied to Jason saying the truth is, pretty much every stock goes through this at some point. The key is to focus on the opportunity, not the stock price.
But then the following week a fellow member, Michel, researched Jason’s question personally (amazing!) and submitted this reply:
Paul. A subscriber challenged you to name three stocks that did well after falling 50%-70%. Here are six from your portfolio. …Maybe not quite a 50% drop, but close enough and look at the gains afterward from their lows!!!
A big thank you to both Jason and Michel for being ON IT!
As you can see, Strong Hands are needed in a trading environment like this.
Our stocks — which are growth stocks — can be volatile. And we’ve seen them take a nosedive this year. But if you hold 5 or 10 stocks — you’re spreading your bets, you’re giving yourself more chances to win.
Rule No. 1 gives you a buffer against volatility.
You want to spread your money around and give yourself many opportunities to win.
And to achieve the most success, we also recommend to follow Rule No. 2 … coming your way tomorrow.