The Doctor Is In – Don’t Skip This “Midyear Millionaire Checkup”

D.R. Barton, Jr.
D.R. Barton, Jr.

It seems like only yesterday that we were ringing in the New Year.

But, believe it or not, we’re now halfway through 2017.

Nearly four months ago, we set off on this incredible journey together, and I feel like we are on the cusp of something truly great.

That’s what makes articles like the one I’m about to share with you so imperative for your journey here.

You see, the summer months give most of us a chance to slow down and catch up – on relaxation, on chores and, with a bit of scheduling and focus, on our wealth goals.

Now, as regular readers of my work know, I have a real love for old investing adages and maxims. And there’s one that really applies to today’s story.

Back during World War II, British Prime Minister Winston Churchill told listeners that “he who fails to plan is planning to fail.”

And was he ever right.

So many investors fail precisely because they “wing it” and don’t have a plan or a system of any kind at their disposal.

But it’s not just the plan itself that’s really so important.

It’s the insights that you gain from setting up and revisiting the plan that are the real benefit.

You reassess – and remind yourself of – such things as:

Your risk tolerance Your current financial situation, as well as where you eventually want to be Any ancillary issues (like saving for your children’s college education or making sure you can handle taking care of an elderly parent) And the steps you need to be taking to actually meet all your financial goals

That’s why I always set aside time for a midyear investing checkup to remind me of the “bigger picture,” to reaffirm my goals… and to take a hard look at the health of my investments.

Here at The 10-Minute Millionaire, we’ve already started this invaluable process.

Earlier this month, we took a few moments to look back at some of the biggest money-making lessons we’ve learned so far.

And today, we’re going to look at the final piece of our “Midyear Millionaire Checkup” – a review of our open recommendations.

Let’s get started…

An Inside Look

Now, before we dig into our current trades, I want to give you a quick insight to how I evaluate open trades.

I always ask myself three questions when looking at an open recommendation:

Has the narrative changed? Have the fundamentals of my trade changed? Has the technical premise of the trade changed?

Let’s look at each of these together…

Midyear Checkup Question No. 1 – Has the Narrative Changed?

Understanding the current state of our market narrative is a key step in determining the health of our current trades.

That’s why before I even look at overall performance, I ask myself if the overarching theme changed since I entered the trade.

And if it has, should that change how I manage the trade?

Now, 10-Minute Millionaires know our current narrative is on the verge of a massive shift.

Remember, until now, our current narrative has been the optimism surrounding the Trump administration’s growth agenda on lowering taxes, less regulation, and more infrastructure spending.

From the day President Trump was elected, any news has been parsed by the markets based on whether or not it would help or hurt the president’s economic growth agenda.

From the start, this narrative has been a sturdy and persistent driver of the market. And it isn’t quite finished yet.

However, there is a new narrative that is starting to vie for attention – the Fed.

What’s interesting about that is that we’ve had a Fed-based narrative before.

You see, before the November 2016 election, anything that encouraged or discouraged the Fed from raising interest rates more moved the markets in a big way.

But don’t expect this new Fed narrative to be exactly like the last.

In fact, I call this new narrative “The Great Unwind.”

In “Fedspeak,” they call this “normalizing their balance sheet.”

Now, for us as 10-Minute Millionaires, this creates an interesting time in the market.

That’s because we’re seeing something that hasn’t happened in years – a blended narrative.

That means – since we’re in an “in between” state – there is no immediate impact on any our current recommendations.

Let’s look at this chart to get a better understanding of what I mean…

SPX Midyear Checkup Question No. 2 – Have the Fundamentals Changed?

Before we move on to our second question, it’s important to understand a few keys to fundamental analysis.

This type of analysis strives to understand the intrinsic value of a company.

That means looking at financial statements, the management team, product line life cycles, etc.

For 10-Minute Millionaires, we are only concerned with one thing: Is the company financially solid?

To answer that, we look at a few things:

Has anything changed with new product launches? Has it changed management? Have there been any major outside influences like regulatory problems, accounting probes, etc.

When looking at our open positions, each trade has to get a green light on each of these factors before we can move on to our final question.

Midyear Checkup Question No. 3 – Has the Technical Premise Changed?

Now, much like our fundamental question, it’s important to understand a bit about technical analysis for this part.

Simply put, technical analysis is the study of price and volume related to time.

Now, our 10-Minute Millionaire system goes the extra mile to answer this question for us.

Our system is designed to streamline and simplify this step by framing each trade before we get started.

That’s why our trades require little to no maintenance.

If we have not hit our contingency exit (stop loss) or our first profit target, there’s little to do.

The only major questions to ask in an interim trade review are:

Is the trade close enough to my stop to require additional monitoring? Is my trade close enough to a profit target to require additional monitoring?

With this added insight on how I view open trades, let’s turn our attention to our current millionaire-making opportunities to see how we’re faring…

Join the conversation. Click here to jump to comments…

D.R. Barton, Jr.
D.R. Barton, Jr.

About the Author

Browse D.R.’s articles | View D.R.’s research services

Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.

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