Yet another fantastic two months for our Top Trade Ideas! Not only did we start the year with 15 of 16 winners (see April's Review), but our only losing trade idea at the time was UNG, which just turned around last week – making us PERFECT for 2016 in our first 16 picks.
Of course, it's been like shooting fish in a barrel since the February dip on the bull side but the really cool thing is we also called the drop on Jan 8th with SDS and SQQQ hedges that paid off huge as we bottomed out the next month. We only started doing Top Trades last August and what we do is simply select one or two trades a week from our Live Member Chat Room at Philstockworld that we feel have a very high probability of success. That then sends out Text and EMail Alerts to our Members, so it's perfect for people who don't have time to be on-line during the day. All PSW Basic and Premium Members have Top Trade Access (just make sure your smart phone number is in the box here).
We don't have a portfolio for our Top Trades as it would be redundant to our 4 Member Tracking Portfolios but many Top Trade Ideas are from trades we do officially add to our portfolios. That's why we do these reviews once in a while – to check in and see if our logic is on or off track. You can't make good future decisions without learning from your past ones – something we emphasize at PSW!
54 of our first 73 (74%) Top Trade ideas were winners and 4 of our 11 losers were Lumber Liquidators (LL) trade ideas – still one of our favorite value plays! Getting 3 out of 4 trades right is plenty to move the investing ball towards the goal line.
Combine that with sensible portfolio management techniques (diversification, managing losses, hedging) and you'll beat the S&P by a mile with no sweat. Generally, with our Top Trades, we're simply picking stocks we feel are underpriced and we're using our various options techniques to give ourselves even better discounts and hedged entries but these are patience plays that can take time to get going, usually our Top Trade Ideas have…