Six Keys to Unlock Successful Investing

Six keys to unlock successful investing start with a good plan.

In this case, the plan has been proven during the past 46 years as a way for investors to know when to be in the market and when to leave it. The technical indicator has helped to protect investment gains and reduce the risk of big losses.

Roughly 20 of the 27 current Successful Investing recommendations in its three portfolios are profitable, and many are up by double-digit percentages. Multinational technology company Nvidia Corp. (NASDAQ: NVDA), of Santa Clara, California, has soared 226.54% since its recommendation in Successful Investing.

Chart courtesy of www.stockcharts.com

Six Keys to Unlock Successful Investing: 1, Use a Good Plan

The first key to unlock successful investing is to have a good plan and to use it, said Jim Woods, who heads the investment newsletter. As a featured presented at the Global Financial Summit at last week’s FreedomFest conference in Las Vegas, Wood suggested that investors ask themselves the following questions.

What’s Your Plan?

• What’s your plan to get into the market?
• What’s your plan to get out of the market?
• Do you just buy randomly?
• Do you sell randomly out of fear?

We don’t do any of these things, because we have a proven plan, Woods said.

Six Keys to Unlock Successful Investing: 2. Proven Plan Patterns

The second key to unlock successful investing is to follow a proven plan like the one he uses. The plan that Woods recommends is the Successful Investing newsletter’s trend-following strategy.

Not only does the plan’s track record top 46 years, but it clearly signals when investors should be in the market, as well as out of it. By following a specific timeline with a specialized measurement tool, investors can be guided in how to navigate the market’s vagaries.

Six Keys to Unlock Successful Investing: 3. 40-Plus Years of ‘Genius’

The third key to unlock successful investing is using a proven plan that has maneuvered within the markets well enough to conjure up thoughts of tapping the expertise of a “genius.” That genius began with Dick Fabian, founder of the Successful Investing newsletter. He identified the market-following strategy and used it effectively before turning the newsletter over to his son Doug Fabian, who ultimately handed the reins to Jim Woods.

   Successful Investing Signaled These Moves:

• October 15, 1987, Pre-Black Monday Sell
• January 1995 Bull Market Buy
• April 2000 Sell
• January 2008 Great Recession Sell
• March 2009 Buy
• February 28, 2020, Sell
• June 2, 2020, Buy 
• January 21, 2022, Sell
• December 2, 2022, Buy
• October 25, 2023, Sell
• November 15, 2023, Buy

Six Keys to Unlock Successful Investing: 4. Track the Domestic Fund Composite (DFC)

The Domestic Fund Composite (DFC) is used to provide a current snapshot of U.S. stock markets. To do so, the following funds are tracked to determine the direction of those markets.

• iShares Select Dividend ETF (DVY)
• iShares Core S&P Small-Cap ETF (IJR)
• iShares Core S&P US Value (IUSV)
• iShares Russell 1000 Growth ETF (IWF)
• SPDR S&P 500 ETF (SPY)

“The five funds that comprise the Domestic Fund Composite (DFC) represent a much better, and more accurate, measurement tool than merely using the S&P 500 or Dow,” Woods said. “By incorporating small caps, value, growth and dividend stocks, we are able to better assess the movement of the markets in relation to their key, long-term moving averages.”

Six Keys to Unlock Successful Investing: 5. Model Maneuvers of Moving Averages

Woods, a music lover, uses the word key not only to explain its vital role in the market-trend signal plan he champions, but as an indicator of the right note to keep the market in perfect pitch.  Woods elaborated accordingly:

• What key are we in?

DFC: 39-Week Moving Average

• The Key of “Buy” or “Sell”
• The Key is to Listen to the Charts…
• We are in the key of “BUY” in domestic stocks when the DFC is trending ABOVE its 39-week moving average.
• We are in the key of “SELL” in domestic stocks when the DFC is trending BELOW its 39-week moving average.
• It is when the DFC is below this key moving average that you know it is time to sell.

Six Keys to Unlock Successful Investing: 5. Three Successful Investing Portfolios

Current favorite recommendations touted by Woods in his three Successful Investing portfolios are:

Income Portfolio:

iShares Core High Dividend ETF (HDV), +14.04%

VanEck BDC Income ETF (BIZD), +8.26%

SPDR Gold Shares (GLD), +28.79%

iShares Floating Rate Bond ETF (FLOT), +4.91%

Growth Portfolio:

Invesco QQQ Trust (QQQ), +28.60%

Vanguard S&P 500 ETF (VOO), +25.50%

Vanguard Total Intl Stock Index Fund ETF Shares (VXUS), +11.07%

iShares Core S&P Small-Cap ETF (IJR), +20.55%

Tactical Trends Portfolio:

VanEck Pharmaceutical ETF (PPH), +53.56%

Global X US Infrastructure ETF (PAVE), +55.54%

Communication Services Select Sector SPDR ETF (XLC), +24.53%

CrowdStrike Holdings Inc (CRWD), +81.11%

NVIDIA Corp, (NVDA), +226.54%

To simplify the plan, Woods provided the following cheat sheet for investors to follow.

Successful Investing ‘Cheat Sheet’

• Be IN the market when the trend is bullish
• Be OUT of the market when the trend is bearish
• Track the market with a more complete tool
• Use the Domestic Fund Composite
• Think Musically
• Know the “Key” of the markets (Bull or Bear)
• Follow the 39-week moving average
• Follow the Growth, Income and Aggressive/Tactical Trends Portfolio recommendations
• Rely on Woods to track the trend each week
• Follow the Plan’s Buy and Sell Signals

Six Keys to Unlock Successful Investing: Skousen’s Forecast

Mark Skousen, PhD, who heads the Forecasts & Strategies investment newsletter, served as chairman of FreedomFest and offered his own insights about the market. He predicted that bitcoin investments could “skyrocket.”

Skousen also asserted that the technology sector is still a “very exciting area,” as well as the artificial intelligence (AI) area.

In addition, Skousen said he generally favors the stock market. Specifically, Skousen spoke of a brightening outlook for mining stocks. He singled out uranium as a “long-term” play, and also praised the prospects for copper.

The “best-performing commodity” right now is gold, Skousen said.

Six Keys to Unlock Successful Investing: Gilder’s Guidance

The investment opportunities in technology are “larger than ever before,” said George Gilder, another FreedomFest speaker who heads the Gilder’s Technology Report investment newsletter.

Gilder is a huge fan of graphene, a material that he expects to spur the world economies in the future. Graphene is a “foundation” for a whole new economy, he added.

Geopolitical Risk Includes Assassination Attempt Against Former President Trump

Geopolitical risk rose during the past weekend with an assassination attempt against former U.S. President Donald Trump, who was shot in the right ear by a gunman during a campaign rally last Saturday in Butler, Pennsylvania, near Pittsburgh. The shooter killed one attendee who drove to cover his wife and daughters but took a bullet in the head while protecting them.

Two other attendees were seriously wounded. Secret Service agents fired at the gunman and wounded him fatally. The president showed resilience by appearing on Monday, July 15, at the Republican National Convention with a bandage covering his right ear.

Sen. J.D, Vance, R-Ohio, accepted an offer from President Trump to run on the same ticket as the vice-presidential candidate. Sen. Vance, once a critic of President Trump, subsequently became a supporter. Both have criticized U.S. government funding to help Ukraine defend itself against the invasion of its sovereign territory by Russia, contrary to President Biden staunch support for the American ally.

The six keys to unlock successful investing start with a good plan and end by following it consistently. The rewards can be heightened total returns and significantly reduced risk.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Special Sale for Graduation Season! Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for reduced pricing on multiple-book purchases.