Legendary speculator Rick Rule tells me that my pre-production sweet spot (PPSS) research is the most important work I’ve done in the resource sector. But the idea that the most readers have thanked me for is my Upside Maximizer.
We all know (if were honest with ourselves) that no one really knows in advance when a market or a stock is going to peak.
This is why we need a strategy for making sure we don’t let big wins slip through our fingers—while not cutting off our upside by selling too early.
That’s the Upside Maximizer.
Here’s a message on the subject from a reader (who happens to be named Louis—great name!) who game me permission to share his story. It illustrates the power of the idea with actual experience better than I could with theoretical explanations.
I read the Upside Maximizer and really liked the premise. However, after being one of your subscribers for just two months, many of my investments were up 50-60%. That’s a lot for me in just a couple months. Gold was rocketing to 2100. I even invested in your "Go To" companies. I'm watching my bullion reach ridiculous values. Seeing so much money in my account I started to get nervous about all the gold euphoria in the news.
Doug Casey once told you, "When a golden bull is on the cover of Time magazine I’ll know it is time to exit." Well, no one reads magazines anymore, let alone Time. I know he wasn't being literal, but when gold news was on everything from CNBC to MarketWatch to Fox Business, I started to panic. I couldn't believe I’d been at this just a couple months and it was already over.
I set complete stop losses on all my picks. Not Upside Maximizers, like you recommend. Why? Because I didn't want to lose any money… I was sure this was it, and Lobo was crazy to not exit. I mean you have 20+ years of experience and I have two months, so of course I'm right. :)
The day gold dropped $100, everything I was invested in sold off automatically. I made big gains, but I ended with zero mineral stocks in my account. All I had left were traditional S&P funds. I thought I’d made a bunch and could now watch gold collapse like it did in 2012.
Well, as we know, mineral stocks bounced back the next day and as of today are much higher. I'm back into some of the things you alerted us to recently but, in essence, I'm starting over.
You wrote that you think this is not like 2012. I should have listened. Many others also believe we will trade sideways for a while before going higher again. “Who knows?” is a key point you said in your Q & A over and over. The lesson, for me, was to not be emotional and use an Upside Maximizer to keep some invested, because "no one knows what is going to happen."
I made a bunch so I'm thrilled, but now if I want to be back into those same stocks it would be at higher rates. I'm waiting for the pullback that may or may not ever come. Who knows.
I'm kicking myself.
Thanks, Louis, for letting me share your story.
So, what is the Upside Maximizer?
Briefly, it’s a trading strategy that uses something like a stop loss—but for locking in gains, not avoiding losses.
How does it work?
I’m happy to tell you.
In fact, I’ve written a detailed, free report with the full rationale, step by step explanations, and examples.
All I ask is that if my ideas work for you, you remember who gave them to you, and consider doing business with me in the future.