Investment Philosophy

Investment Philosophy

Make it simple and succeed  or be dragged to the bottom with complications. Sol Palha 

 Investment Philosophy

Our investment philosophy is short, simple and sweet……… It encompasses the following objectives.

Objective # 1  Make the investment process as simple as possible

Our  goal over the years has to been to continuously simplify our investment strategy.  Investing should be fun, especially in this day and age where most individuals have less and less time on their hands to do the things they  truly want.  Thus, It has been our focus to work on a simple and yet effective strategy on making this complicated process as effortless as possible. To achieve this objective, we combined mass psychology, technical analysis and key aspects of fundamental analysis to identify important market turning points.  This trio has enabled us to turn what is viewed by many as a complex subject into one that is exceptionally undemanding, and one that entails little to no stress. Please click  on the following two links to find out why   fundamental analysis  and mechanical systems in general do not work as standalone tools.

Objective # 2 Identify the Trend

The trend is identified with our highly effective and reliable Trend Indicator.  If the trend is up then we open long positions and vice versa.   This indicator took over 15 years to perfect, but the wait was worth it. The Trend Indicator is so effective, that it has made it almost dangerously simple to invest in the markets.  All we need to do is identify the direction the market is trending in, open a position and then sit back and relax. In other words, the mountain comes to Mohammed.

The trend indicator is simple and easy to follow:

If the trend is up, then the general strategy is to use pullbacks to open long positions; the stronger the pullback the greater the buying opportunity.  It cannot get any simpler than this. We have backtested this indicator with over 50 years worth of data and it has never failed to identify key market turning points. The beauty of this indicator is that it does not try to identify the exact top or bottom.  Thus, once the market direction is determined, we have plenty of time to act.  There is no need to rush or panic and we can change our investment strategy with little to no stress.  For more details on the trend indicator please click here

Objective # 3 The Selection process

We combine mass psychology, technical analysis and a bit of fundamental analysis to determine whether we will get into a play or not.  We mainly focus on the Psychological and technical aspect of the stock and or index in question.   To date, this strategy has proved to be invaluable.

1) The structure and trend of the most popular indices S&P, Dow and Nasdaq are examined.  Under the market commentary section, the overall trend of the market is examined and discussed.  If the trend is up, then index traders are told to view pullbacks as buying opportunities and strong pullbacks as even better buying opportunities.  Our instructions are concise and simple.

2) Once the overall trend of the market is identified, we then issue plays that are poised to benefit the most from the stated trend.  If the trend is up, then we look for long plays.  If the trend is neutral, we still long issue plays, albeit fewer plays; for until the trend turns negative we will not short the markets. Even when it turns negative, the advice to conservative players is to sit on the sidelines.

We focus on sectors that the Trend indicator has turned bullish on, and vice versa.   The next stage is to zoom in on  plays that fall under the categories listed below.  You can click on each of the categories for more details.  Many services charge upwards of $1000 a year for each of the categories listed below. At the Tactical Investor, you get all this and more at an incredibly affordable and reasonable price.

Objective # 4  Get into the strongest plays

Once the trend is identified, we select plays that will perform the best in the direction identified by the trend.  If the trend is up, we will look for the best stocks to open long positions in, and vice versa. It is important to note that we do not rely on,  nor do we use simple technical analysis tools/indicators.  We employ a combination of proprietary  tools and Technical Indicators that we have modified, almost all of which have a psychological component built in.   This simple strategy has proven to be very effective to date.  As you can see our investment philosophy is simple, sweet and efficient. Spot the trend and ride it to the end

Higher Risk Portfolio for Speculators

This portfolio is designed for individuals willing to take on more risk.

  •  We look for plays  that offer the opportunity for significantly higher returns.
  • We issue options plays on stocks that we are going to purchase in our regular portfolio (The  Trend Portfolio).  The plays  that fall under the Trend portfolio are lower risk plays, where the idea is to seek sure, but Steady gains that normally fall in the 20%-60% ranges. but can deliver gains in excess of 100%.  Thus the idea in this portfolio is to leverage the power of these plays via options…….. While the risk is higher as we are playing with options, it is also significantly lower than buying an option on any random stock, as these stocks have been hand picked because they are deemed to perform much better than their peers……. By leveraging the power of options, a 20-60% gain can produce gains that fall in the 100%-600% plus ranges for the corresponding options.
  • From time to time we issue entry points for futures plays that offer the individual the opportunity to lock in thousands of dollars in profits.   Some examples are the Euro short trade,  the Dollar long trade, the Gold short trade, the Yen short trade, etc.  Players who followed the general guidelines locked in tens of thousands in profits.   We must state that as this is a not a futures service, we do not monitor the positions closely. We provide general guidelines, and thus this sort of trading is best suited to individuals who are familiar with futures, and can monitor the trades on their own.

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