Money Talks

April 2023

Position Management: Have a Plan and Stick to It

April 7, 2023TradeSmith Editorial Staff

A Note from Keith: Today we’ll wrap up our special four-part series, “Foundations of Wealth.” After careful consideration, I’ve decided that today will be the last Money Talks article for a while as we look to focus on some new and exciting endeavors. I wanted to share my sincere gratitude for your support, readership, and feedback over the years. You can continue to hear from me regularly through the TradeSmith Daily e-letter. (If you aren’t subscribed, you can sign up

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March 2023

Position Sizing: How Much You Buy Matters More Than What You Buy

March 31, 2023TradeSmith Editorial Staff

Editor’s Note: In this special four-part series, “Foundations of Wealth,” we spotlight the miscues to avoid, the hype to ignore, and the powerful basics to embrace. The goal: To help you win in good markets and bad — and to deliver that “edge” Wall Street hopes you’ll never find. In my last essay I talked about asset allocation — how it’s important to have a diversified mix of assets. Different economic climates affect different businesses and asset classes differently, so some assets “zig” when

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Asset Allocation: How a Balanced Investment Diet Builds Up Money Muscle

March 24, 2023TradeSmith Editorial Staff

Editor’s Note: In this special four-part series, “Foundations of Wealth,” we spotlight the miscues to avoid, the hype to ignore, and the powerful basics to embrace. The goal: To help you win in good markets and bad — and to deliver that “edge” Wall Street hopes you’ll never find. In my previous essay, I discussed how in the financial research business, “stock picking” gets most of the press. People love to learn about interesting stocks with huge potential. People love to talk about stock

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Foundations of Wealth: Three Power Moves That’ll Keep You Safe – And Deliver That Winning Edge

March 17, 2023TradeSmith Editorial Staff

Editor’s Note: In this special four-part series, “Foundations of Wealth,” we spotlight the miscues to avoid, the hype to ignore and the powerful basics to embrace. The goal: To help you win in good markets and bad – and to deliver that “edge” Wall Street hopes you’ll never find. If you’ve been a TradeSmith reader for a while, you’ve seen my face on dozens (maybe hundreds) of emails, research pieces, and promotional messages. I try to stay in touch with you so often

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Searching for Income: The Entry-Level Options Trade That Can Put Cash Right into Your Pocket

March 10, 2023TradeSmith Editorial Staff

When I talk or write about trading options on stocks, the most-frequent reaction I get is that they’re just too risky – that it’s just too easy to lose money with them. That’s actually not true. In fact, there’s a bigger risk in not trading options. By avoiding this slice of the capital markets, investors are missing out on one of the best income opportunities available today. In fact, one of the biggest investing secrets is that you can create “income on

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As Uncertainty Becomes the ‘New Normal,’ We Give You Two Stocks for Your Watchlist

March 3, 2023TradeSmith Editorial Staff

When I spotted a report that bacon prices in December had experienced their biggest one-month decline since 2019, it was like the words lit up and then jumped off the page. You have to understand… I’m a “bacon guy.” I’m the guy who believes you “fix” a salad by heaping on chunks of crispy bacon… with a generous sprinkle of bacon bits added for good measure. I’m the guy who — when COVID-19 created supply-chain mayhem — walked past the paper towels

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February 2023

The No. 1 Investment Factor I’m Focused on Today

February 24, 2023TradeSmith Editorial Staff

Between surging inflation and stocks and bonds plunging in unison for the first time in decades, 2022 was incredibly challenging for most investors. Unfortunately, 2023 could be shaping up to be even worse. You see, the outlook for markets this year is arguably even hazier than it was this time last year. On the one hand, we’re seeing some “green shoots” for the first time since the bear market. Inflation has been steadily easing for several months. Both stocks and

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A Stock Strategy for Every Market Season – And an Income Game Plan You Can’t Afford to Miss

February 17, 2023TradeSmith Editorial Staff

If you’re a longtime investor, I’m betting you know the name Peter Lynch. Lynch was the author of the mega-bestseller “One Up on Wall Street.” And he popularized the mantra: “Invest in what you know.” His fame – his credibility – was based on some really impressive work in the stock market… as the manager of Magellan, the flagship mutual fund of giant Fidelity Investments. Between 1977 and 1990 – under Lynch’s stewardship – Magellan generated an average annual return of 29%.

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My Three ‘Rules’ for Winning with Options

February 10, 2023TradeSmith Editorial Staff

Longtime Money Talks readers know I’m a huge fan of options. In fact, as I mentioned in my year-end note to you, if I had just $5,000 to invest in the markets in 2023, I wouldn’t invest it at all. Rather, I would use options trading strategies to generate consistent gains of around 1% on that money each week. As I mentioned, those kinds of returns don’t sound particularly exciting – until you consider they can add up to as much as 50% a

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This Simple Exercise Can Help You Reach Your Financial Goals

February 3, 2023TradeSmith Editorial Staff

Last week, I introduced you to the idea of a “position audit.” Using this strategy is as simple as taking a hard look at each of your investments and deciding if they still deserve a place in your portfolio. Yet doing so regularly – once a month, once a quarter, or even once a year, depending on your investment approach and portfolio size – can dramatically improve your results. That’s because a position audit forces you to be objective and

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January 2023

One Question Every Investor Needs to Ask Themselves Today

January 27, 2023TradeSmith Editorial Staff

Longtime Money Talks readers know I don’t consider myself a financial “guru.” I’m just a regular guy who’s made a bunch of mistakes and learned a lot of critical money lessons the hard way. But as CEO of TradeSmith, I’ve also been fortunate to work with some brilliant investors, traders, and entrepreneurs over the years. And I’ve learned a great deal from these folks as well. This week, I want to share a lesson I learned from my friend Brian Hunt, CEO of

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The New Year Means Another Chance to Beat Inflation Without Taking Big Risks

January 20, 2023TradeSmith Editorial Staff

Last spring, I introduced Money Talks readers to a simple way to protect a portion of their savings from inflation while taking virtually no investment risk. I’m referring to Series I savings bonds, or “I bonds” as they’re commonly known. As I explained, I bonds are a type of savings bond designed to keep up with (or even beat) inflation. (If you missed my full explanation, you can catch up right here.) In short, unlike traditional Series EE savings bonds, which only pay

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