TRADING MANUALIdentifying Meteoric Acceleration: The True Momentum

1

TEN years ago, I was working at a hedge fund in New York City, having the same argument with my colleagues day in and day out. I’d let them in on a stock that I invested in, which I knew without a shadow of a doubt was about to revolutionize the way that people experienced at-home

entertainment.

At first my colleagues were intrigued. They wanted to know what kind of company I believed could more than double its business within the next three years.

But once I told them the name of my investment, all my associates thought I’d lost my mind. They called me crazy. They said that I should sell all my shares immediately if I didn’t want to lose every penny I’d invested.

Looking back, I can almost understand why. Wall Street was calling the stock a short. Analysts thought heavy competition and slow subscriber growth were reasons for low sales projections. Critics called the company’s new business model unnecessary.

But it’s never been in my nature to trust what mainstream analysts are saying. I knew that my research was sound — and my indicators were flashing “buy!”

So I stayed in the stock, and it’s a good thing I did.

I don’t want to reveal the exact dollar amount I made. I can tell you that my return on investment was high enough that when I finally sold my shares, I was able to put the money toward a sizable down payment on my house.

But I did get one thing wrong. The company didn’t just double its audience during my three-year timeline. It nearly tripled it, going from 7.48 million users in 2007 to 20.01 million users in 2010. And at the end of 2016, it had a customer base of 93.8 million people. One of those might have been you.See, the stock that I invested in was Netflix.

And while today that might seem like a sound investment idea, 10 years ago, I was a black sheep among my peers.

Since that time, I’ve uncovered plenty of other “risky” ventures that investors didn’t want to touch. But I knew they were about to take off.

For instance, I uncovered a little-known, “down and out” company called Coeur Mining that the financial media was quick to shun. Every technical indicator said that the company was a hopeless investment, yet I ignored Wall Street. I bought in anyway. To everyone’s surprise, a month after I purchased the stock, Coeur Mining’s shares started to tick up. It became a “buy” according to the Bollinger Bands. Then it broke through its 50-day moving average, and got a green light from both the MACD and Relative Strength Indicator. For me, this confirmed the stock had momentum.

Suddenly, everyone wanted in. But because I knew of Coeur Mining’s potential before everyone else, I was able to purchase shares cheaply. That is, right before other investors came in and bid it up. And by the time the stock started to decline, I was already out and walked away with a 738% gain.

Identifying Meteoric Acceleration:

The True Momentum Trading Manual

True M mentumPAUL MAMPILLY’S®

2

Yet if I had waited for Wall Street and the media to tell me to buy, I would have never made such a high return. It’s only due to my 25-year career in finance and the hundreds of thousands of hours I’ve put into researching different companies that I can now spot stocks with that kind of potential.

After years of fine-tuning and countless trial-and-error tests, I’ve created a system that specifically targets stocks that only have one way to go — up! And now that you’re a True Momentum subscriber, you’ll have access to that same strategy, plus an inside look at some of my trade secrets.

You won’t find this information in any form of textbook, or in any online course. That’s because the strategy that I follow is unique. I’ve tailored it to fit my own investing pursuits and expectations. But by joining True Momentum, you’re essentially getting the chance to look over my shoulder at my own model portfolio. I’ll tell you exactly what to buy, when to buy and when to sell your stocks.

So with that, welcome!

I’m excited to show you my system so that you can start pocketing these winning stocks, too. But before I get too far ahead of myself, it’s important for you to understand exactly what “true momentum” really means.

With that in mind, let’s get you underway.

The Heart of Every Stock PickThe first thing you need to know is that the companies I recommend to you in True Momentum will end up

looking very different from one another. One month I may issue a trade alert telling you to buy a social media company. The next month I may suggest a pharmaceutical drug company. Then the next month it might be a robotics maker.

On the surface, none of these businesses will appear to have anything in common. Yet each stock I recommend in this service will share one very important characteristic: They must all be showing signs of extreme acceleration in the growth rate of their business.

That’s the core of this system and what it means for a stock to have true momentum. It’s really that simple. How I find each of these companies, however, is much more complex — and difficult to explain.

See, my True Momentum strategy acts like an X-ray machine. It’s capable of seeing through all the layers of skin, tissue and organs to reveal the real story under the surface. It ignores what Wall Street is telling you to do. It shuts out all the gossip from the media. And True Momentum even goes beyond the technical analysis of the stock price.

Other technical traders will spend time trying to figure out if a stock’s price will go up or down. And that’s fine if you’re looking to make a quick return in the market. But that’s simple, shallow research compared to all the True Momentum indicators that I look at, because, frankly, I’m in this to make big gains.

I want to turn thousands into hundreds of thousands, and hundreds of thousands into millions. But to do that, I have to analyze the true momentum of every single potential investment to determine if the company has true momentum.

So, no matter how much I might like a business, its current market or its future potential, if I don’t see immediate signs that it has true momentum, then I’m not going to invest in it — at least not at that time.

But to find stocks that have signs of extreme growth acceleration, I have to look at dozens of indicators. These include things like gross and net revenue, earnings, debt, current assets, operating cash flow, market sector, EBITDA, insider ownership and consumer need for the product or service. The list goes on and on.

In fact, the full list of indicators is much, much larger than that. Therein lies the difficulty in determining which stocks are showing signs of real true momentum. There is no set number that you can track that will tell you when to invest, or when it’s time to get out of the stock.

My colleagues at my hedge fund didn’t see the massive potential that Netflix was presenting to investors

3

on a silver platter. That’s surprising because these were very well-respected financial analysts who had years of experience under their belts and who knew how the industry worked. So, for the everyday investor, spotting a company with true momentum is a monumental challenge.

And that’s because it requires the perfect set of circumstances for both the company and the investor to succeed.

To explain this a bit further, let’s go back in time.

How I Knew Netflix Was a BuyWhen Netflix first came onto the scene in 1997, it was only an online DVD rental service with just 1,000

DVD titles for people to choose from. But the company always had grander plans than that in the works.

Aiming for convenience, founder and CEO Reed Hastings knew that the future of Netflix didn’t involve shipping physical discs to people’s homes. At one point he even said: “Because DVD is not a hundred-year format, people wonder what will Netflix’s second act be.”

As it would turn out, that second act was online video streaming.

But while the way forward was clear to the company, the path to get there was littered with obstacles. At the time, Blockbuster stood in the way as a huge competitor. With thousands of retail locations, a massive customer base and a trusted business model, many people wondered what benefits Netflix could offer that this Blockbuster couldn’t.

On top of that, when the company first started out, the technology to stream videos wasn’t there. The bandwidth wasn’t strong enough for videos to come in clearly without freezing. And there was the constant threat that larger digital cable companies like Comcast or Verizon might steal customers with their video-on-demand services.

In fact, I remember when one of my colleagues asked me this question: “If you want to watch a movie at home and not go out to get it, why wouldn’t you just use pay-per-view?”

Whenever someone starts a counterargument with the words “why wouldn’t you,” that’s my cue that they haven’t researched the topic at hand and that I’m actually on to something really good. And it turns out that I was correct.

Netflix went full steam ahead and disrupted its own business model, and reinvented itself into an Internet movie distributor. It didn’t take long for the service to gain momentum. Its streaming service got faster as the internet got more advanced. Its subscriber base started to grow rapidly, drawing customers in with its low- cost streaming delivery. The concept of late fees was no more.The shift was a major success. In a few years’ time, the company’s subscriber base nearly tripled and continued to ramp up from there. It was also able to keep its operating costs at a minimum because of not having to maintain physical store locations with thousands of employees. As a result, its revenue began to surge.

The more I tracked Netflix, the more that I liked the company. And when I heard of its plans to move its content online, I knew that I was looking at something revolutionary. See, part of identifying true momentum comes down to understanding when it makes sense for a company to change its business structure. It’s this rapid change in structure that tells me the company is setting itself up for a massive new surge in growth, which means that the stock is soon going to profit from huge gains.

The Pinnacle MomentThis point of rapid expansion is what I refer to as the pinnacle moment. It’s my cue that the company has

built its business out and is ready to grow.

Often this comes at a company’s “second stage” of development. This is where the company has already

4

established itself before its newest expansion venture, and has experienced an initial growth spurt. The stocks that we invest in with True Momentum will often have a market cap of $2 billion to $3 billion, and can go as high as $10 billion. So. they’re not completely new businesses on the market.But by the time these companies have reached their second stage of growth, they’ve set themselves up to experience rapid acceleration, or what I like to call true momentum.

What gets difficult is determining whether or not a business is actually at this pinnacle point.

Many companies try to revitalize themselves and fail. It requires constant monitoring and careful consideration of each one of my indicators to determine whether or not a stock is a good investment.

According to my historical analysis, there are an average of 24 stocks that display true momentum a year. This means that we have 24 opportunities to capture gains of 100% or more each and every year. The best part is that I’m able to determine these portfolio winners no matter what sector the company is no, no matter how large or small the company is, and no matter where the stock price of the company is at.

Targeting Massive WinnersThe main goal of this service is simple: to target stocks that are on the verge of massive acceleration. While I

always look to capture gains of at least 100%, the stocks that I put into our True Momentum portfolio will have the potential to return 300% within a year’s time.

To achieve this goal, we’re going to use my overall GoingUpness system with a focus on my True Momentum indicators. Many of you may know my overall GoingUpness system if you read either Profits Unlimited or Extreme Fortunes, but I’ll go over it again in this report.

The main difference is that in True Momentum, we’re going to focus on my indicators to find companies that are on the path toward momentous acceleration. Then, once we’ve gotten a stock in our sights, we’re going to monitor its ability to maintain this acceleration based on my six cues of GoingUpness.

That’s how we’ll generate gains of at least 300% in the next year.

Now, don’t get me wrong. I’m not perfect. While I would love for every single investment that I recommend to be an absolutely phenomenal winner, every now and then one is going to fall short. But the number of big winners that I’ve experienced in my long trading career show that we’re going to get more right than we do wrong.

Having said that, there are a couple more things that I want you to be aware of before I dive into the guts of my GoingUpness system. So please keep these points in mind:

• Trading Frequency: My strategy has identified 24 stocks per year, on average, that are on the verge of reaching true momentum. I’ll analyze a handful of these each month — and, after considering the market conditions, I’ll pick the best stock to recommend. That means you’ll get about one pick a month, or 12 a year. Of course, we want our stocks to be winners ... so this does depend on the market conditions we experience.

• Stop-Loss Strategy: We’ll be using a stop-loss policy with all of our stocks. We’ll place a stop at a 30% loss for most. However, there may be stocks where we set our stop-loss a bit higher or a bit lower. Ultimately, the goal is to make sure that we’re in the stock when it’s ready to rocket higher and to ensure that market insiders don’t bamboozle us into gifting our stocks to them cheaply.

• Buying Back Positions: Just as with my other two services, Profits Unlimited and Extreme Fortunes, we’re going to buy the stock back if it recaptures its GoingUpness trend, and I feel we can make money in it again.

• Weekly Podcasts: I will send you a weekly podcast that either includes an update on the portfolio and market conditions, or other timely financial news.

• Trade Alerts: When the conditions are right to add another stock to our portfolio, I will send you a trade

5

alert with an “action to take” telling you to buy that stock. On the other hand, if a stock has reached our 30% stop-loss point, or there are outstanding conditions that warrant us taking the stock out of our portfolio, I will send you an alert with sell instructions. Please keep an eye out for the trade alerts so you can initiate a position in time.

• Answering Your Questions: From time to time, I will gather together the most-asked questions that I receive and answer them in your weekly updates so that you are completely confident and comfortable trading our system. You can always reach out to me at truemomentum@banyanhill.com. Just please be aware that due to the volume of emails that I get a day, I will not be able to answer your questions individually, nor can I give personalized financial advice.

With that said, I’ll now lay out my GoingUpness system in full in case you aren’t familiar with it yet. Those of you who follow either Profits Unlimited or Extreme Fortunes don’t necessarily need to read what follows.

However, I encourage you to brush up on the pages below because this system lies at the heart of all three of my services.

Remember, we’re using the same basic system as both Profits Unlimited and Extreme Fortunes. True Momentum just has additional indicators that allow me to target stocks that are going up quickly no matter their price, size or sector.

For those who are new to my services, let me get you acquainted with everything you can expect from me.

The GoingUpness SystemAs I mentioned, I look for stocks that have explosive potential.

At the moment, the areas with the biggest growth prospects are the Internet of Things, the millennial generation and even geothermal energy. Each of these emerging trends can provide massive profits.

We want to get in now — at the forefront of these trends — before anyone else realizes how massive the opportunities are. To do that, we’re going to utilize my system.

So how do we use the GoingUpness system to monitor stocks about to make big gains?

Well, I’ve spent thousands of hours researching how to get the best out of the stock market. And with my unique professional experience as a Wall Street insider, combined with my lessons from countless trial-and- error trades in which I tested this system with my own money, I’ve created something that works.

Of course, there are no guarantees in the stock market, so we won’t pocket a winner every single time — that’s simply the nature of the beast. But more often than not, we’re going to pick a winner instead of a loser. Here’s how we’re going to do it…

When you boil it down, GoingUpness is a simple system that looks to find cues to tell you if a stock will rise.

As I researched and tested this system, I found that there are six main cues.

It’s possible to find a stock that has all six cues, but just keep in mind that it is exceedingly rare. If we waited for that, we could end up waiting years in between opportunities, all while perfectly good trades pass us by. So most of the time, we’re looking for stocks with at least a couple of cues. And the most cues we’ll likely ever see is four — but that’s fine. In the end, more cues don’t necessarily mean a better opportunity. In fact, depending on the stock, one cue can be more important than the rest combined.

Think of it as if you’re a detective sniffing out clues. In one case, one great clue can solve the case. In another case, you might need three small clues to solve it.

That’s why I like to say that successful investing is not a pure science. Ultimately, it’s an art — one in which you connect possibilities and make inferences between observations. So the key is not in connecting the dots, but in finding the right dots.

6

With that said, let’s turn to our six cues of GoingUpness.

They are broken up into two sets. I’ll list them out and then give you the details of each one. The first set is comprised of the qualities you look for in a stock, and each quality ends in “ness.”

1. InDemandness

2. Insiderness

3. Buyness

The second set are the three abilities that a stock needs to have. Each factor ends in “Ability.”

4. ScarceAbility

5. ValueAbility

6. ManageAbility

Now for the details. Let’s start with the first set:

• InDemandness means that a stock is in demand by buyers. Essentially, someone keeps buying the stock at current prices or higher. My GoingUpness system has two ways to measure, monitor and track this.

1. Most of the time, an InDemand stock trades at or above its trend line. The 10-day moving average is the best example of the short-term trend line.

Keep in mind that “trend” is just short form for supply and demand. A dip, for example, means too many shares are being sold in the market, and that there’s no demand for those shares at current prices. That’s not good if you own the stock. It means that supply is too much for the current demand. As a result, the current price of the stock plummets.

Most of the time, once it falls below the trend line, you can expect it to keep dropping. Because of this, we want to buy stocks that are at or above their trend lines — aka their 10-day moving averages.

2. We also want stocks that are at least 20% above their 52-week lows.

We use those numbers because an official bull market is one where a stock has gone up by 20%. And the 52-week low is an important indicator for investment analysts because if a stock hits it, it’s probably headed lower.

On the other hand, if a stock hits a 52-week low and then climbs 20%, it’s officially in a new bull market— which is what we’re looking to benefit from. Once a stock is in a bull market, we’ll want to see it rise steadily to its 52-week high, because then it’s a good bet that it will keep going higher.

Now, there are special cases in which this doesn’t signal a solid stock: Stocks with very low prices can jump around by 20% or more in a single day. So you have to use your common sense and judgment with this element of InDemandness.

In the end, you can see that a stock has InDemandness when it goes up two days in a row, with rising volume. In other words, more people are willing to pay higher prices for the stock one day later. When you see this happening three days out of five, for two or three weeks, that’s a sign the stock is going to keep climbing.

• Insiderness means that one of these things has happened to the stock recently, which reveals insider knowledge:

1. Insiders, namely the company’s management, bought shares in the last six months, or they granted options to themselves.

A good sign, in particular, is if management buys back stock after a rapid decline. It means that they don’t believe whatever put pressure on the stock is going to be permanent. It’s also a sign that they think the stock is cheap and likely to go up soon.

2. If you see one company buying another company during a down cycle in the industry, or when stocks

7

are in a bear market, that’s another sign of Insiderness. Good management knows its business, so it can tell when the industry is bottoming out and when stocks are cheap.

• Buyness means that a stock is hard to buy. See, when a stock is being accumulated by insiders, they make the stock unattractive to other investors.

An example is if the difference between the ask price (the price you pay to buy the stock) and the bid price (what you would sell the stock at) is higher than normal.

The difference is typically 2 or 5 cents, maximum. So in my picks, I look for a difference of 10 or 20 cents.

A wide gap between the bid/ask price makes the stock unattractive to naive buyers who don’t understand what’s going on. So this tells me the stock is probably being accumulated by insiders who really don’t want outsiders involved.

You may also find that when you go to buy the stock, the price keeps jumping higher or your order never gets filled — more deterrents. Another sign is sharp up-and-down spiking in the stock within the same day, which tends to scare people into selling their shares.

So, those are the three qualities that you want to see in a stock that has GoingUpness.

Now, let’s move on to the three abilities that a stock needs to showcase to have GoingUpness.

As you might have noticed, I’m using different terms when describing the second set. These are “abilities” instead of “qualities.”

The difference between a “quality” and an “ability” is that an ability is something that relates to the company’s stock, rather than the people associated with it.

Let’s start with the first ability...

• ScarceAbility means there’s a limited quantity of the stock — and that the quantity is staying scarce, which is exactly what we want.

See, companies that constantly issue shares, especially ones that have just launched their IPOs, are making their stock less scarce and, therefore, less valuable. For example, many companies use shares to pay compensation and bonuses to their employees — and this can run in the millions.

The technical term for this is dilution, and most investors don’t track this watering down of the shares. But diluted shares hit stakeholders hard. It’s like invisible selling, or a tap that’s dripping water all the time. And you’ll mainly feel it when a bear market hits or investors are panicking for some reason — because then these diluted stocks crash.

We want to avoid these companies.

It’s actually fairly easy to do so, since ScarceAbility is simple enough to track. You just look at the shares outstanding that a company reports every quarter. It’s that easy. By tracking this number, you can see if a stock is getting watered down from quarter to quarter.

Now, there’s one more element to ScarceAbility that you need to track: share buybacks. This adds to a stock’s scarceness, but you have to figure out the reason. Context tells us a lot in this instance. For example, a company may buy back shares to offset the watering down of its stock from compensation and bonus plans. In this case, that’s not improving a stock’s ScarceAbility — it’s just evening out the playing field. And now many companies have a policy to that extent.

On the other hand, some companies are opportunistic. They realize their shares are valued at extreme discounts, so they go in and buy shares. That kind of stock buyback is what we look for.

Finally, large investor holdings can also make a stock scarce. For example, Warren Buffett has held over 9% of Coca-Cola for 29 years now.

Buffett’s gains are so large, and the dividends he collects are so big, that he’s likely to never sell a single share. That means 400 million shares of Coca-Cola are unavailable. So anyone who wants to build a big holding will

8

be forced to bid up the price to get their shares. Bottom line: Buffett’s large holding of Coca-Cola makes it scarcer, giving the stock ScarceAbility.

• ValueAbility means that a stock has to control something of value, and there are two main types:

1. It owns a growing business, where sales are rising, profits are expanding and free cash flow is soaring. That’s the best kind of ValueAbility.

That’s because most people buy stocks for growth. So as growth becomes more reliable — for example, we continue to see sales rise in the company’s quarterly earnings reports — a stock rises in ValueAbility. More investors are simply going to want it.

Apple is a good example. Its profits have been growing by 64% for five years, while its sales have been rising by 32% for 10 years. It’s a steady blue-chip company — and most investors would kill to have bought a nice stake in the business early on.

2. It owns a highly valued asset, such as prime real estate, a big stake in another company, a huge amount of gold or silver, a collection of valuable art, etc. Sometimes, the value could be in the company’s large cash holdings.

The key to this kind of ValueAbility, though, is that the stock must be selling at a large discount (20% or more) to the value of these assets.

• ManageAbility means that a stock’s primary business is easily managed. Essentially, this means there’s nothing innately wrong with the economics of the company. So we should feel that it could be led by a regular person and still do well.

“When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact,” said Warren Buffett. And that’s been my experience as well. A bad business won’t become a better business because of brilliant new management. A bad business is just that — a bad business. And a brilliant new manager won’t make a difference. Sooner or later, the business’s internal problems are going to rise to the surface.

One way to gauge if a business is solid and easily managed is by looking at the language used in company reports or press releases. In my experience, companies that use jargon and technical language are often looking to hide things, such as a sales miss. Straight-talkers, on the other hand, put me at ease. If they can easily explain it to you, there’s probably little to nothing that they’re trying to hide.

As a side note, “ease of understanding” should also go for your trading decisions: You should only buy into stocks where you fully understand the risks and the opportunities.

So if you don’t understand the investment thesis for a stock, that’s OK. Just pass on it. Wait for an opportunity that makes sense to you. That way, you’ll always feel in control of your investment and your emotions in regard to the stock. Because, in the end, that’s the key to being a successful investor: Don’t get too low when you lose, and don’t get too high when you win.

Now that you know how we’re going to select our stocks, let’s go over some basics on how to use the recommendations.

10 Things to Know Before Making My TradesTo make sure you’re completely comfortable and confident using my system, I’ve compiled a list of the top

10 things to know before making my trades:

1. If you haven’t already, you need to open a brokerage account.

You need a brokerage account to buy a stock. Commonly used brokerages are E-Trade, Fidelity and TD Ameritrade — but there are many more. Some brokerages, such as Robinhood, let you trade for free using their smartphone app. Others, such as Tradier, let you trade at very low commissions.

9

We don’t recommend you use any particular brokerage. So choose one that has cheap commissions and whose website or app is easy and convenient to use.

2. There’s a specific set of instructions for putting in your buy order.

When I have a trade for you, I’ll always give you specific instructions that you will find in bold in the “action to take.” In every “action to take,” I’ll give you the name of the company, the stock exchange, the stock’s ticker symbol and the buyzone range of the stock. This will include the price that the stock was trading at around the time I wrote the instructions.

Here’s an example of a fictional stock trade:

Action to take: Buy Mampilly Holdings (NYSE: MAM).

Less Middle Very Cheap Cheap (Current Price) Expensive Expensive

B U Y Z O N E

Use the buy-up-to price based on your preference.

$11 $11 $12 $13 $13 -12.00% -6.00% 6.00% 12.00%

Mampilly Holdings – Symbol: MAM

This is an example of a trading range that I want you to use, based on whatever your comfort level is with the stock you’re purchasing. It shows both the high and the low end of the price that you should pay for your shares. By buying your position in slowly, you’re able to get a range of prices for your stock — this will prevent you from getting stopped out of your trade too quickly.

While I’ll provide you with a buyzone range for every recommendation, I want you to think of this chart as a guide, not as something that’s set in stone. As long as a stock is in our portfolio, you can continue to buy it — even if the stock you’re following has moved above the “Very Expensive” portion of my trading range.

I say this because, following decades of personal experience, a stock that shows signs of GoingUpness will continue to go up. So if you’d like to keep adding new shares, or you missed the opportunity to get into a stock when I first recommended it, you can still buy in. It’s completely up to you.

Of course, if you’re an experienced trader and investor, you know how much to buy already. If you don’t, please follow my guidelines, which are listed below.

3. The best times to buy stocks are during regular hours.

The best time to buy any stock I recommend is during the stock market’s regular hours: between 9:30 a.m. and 4 p.m.

Within this time window, the best period for small investors to buy stocks is often between 11 a.m. and 3 p.m. That’s because big-money investors tend to put their orders in at the open at 9:30 a.m., and then around the close at 4 p.m.

When big-money investors crowd into these times, they tend to drive stock prices higher. By waiting until 11 a.m., you’re not competing with them to buy your stock — and often you’ll get lower prices.

The worst time to buy any stock I recommend is during afterhours trading. This is between 4 p.m. and 8 p.m., when there are few transactions. Since there’s just one or two sellers during this period, they’re going to give you a horrible price, so stay clear of this time. Take it from my 25 years of investing. I urge you to sustain from transacting in the afterhours period unless I specifically instruct you to do so.

4. Buy your shares in small portions until you reach your desired holding amount.

Stock markets can swing around like crazy from day to day. So you have to learn to use this volatility in your favor.

10

Most investors buy their whole stock position in one day. However, in my experience, you should buy your stock in small portions. Yes, I’m aware you’ll pay more in commissions for this. Still, you’ll find yourself feeling more in control when you buy your shares in small amounts and scale up to the position you want.

For example, let’s say you’re buying 1,000 shares of a stock. Start with an initial position of 200 or 300 shares. Then buy another 200 or 300 at a time, until your position is full.

One more thing: You’re going to want to stop buying when your stock starts going up — but you’ll have to fight this feeling.

See, rising prices are a sign of rising demand, which means there’s not enough supply of the stock in the market. That’s good news.

So even if your stock is rising you can still buy; simply fill your position to the amount you want and are comfortable with, even when the stock has gone up after you’ve bought your first slug of shares.

For the purpose of my portfolio, however, I will only be following our original entry prices. So any prices I mention will be based on that price, which may differ from your individual ones.

5. I’ll alert you when it’s time to sell.

When it’s time to get out of a stock, I’ll immediately alert you with instructions on how much of your position to sell. Sometimes, I may tell you to sell half of your position to lock in profits, while letting the rest ride.

Most of the time, I’ll tell you to sell your stock at the current market price. However, you should still place a limit order at the current market price when you go to sell your stock. That’s because if you don’t specify a price, the market may move on you, and you might get a smaller gain.

Also, keep in mind that alerts are timely, so be sure to keep an eye on your inbox for them. When I tell you to sell, it’ll look like this:

Action to take: Set a limit order to sell Mampilly Holdings (NYSE: MAM) at the market.

If you ever want to look up the current market price yourself, you can get it by searching for the stock symbol in Yahoo Finance, or any other financial website.

6. How much should you buy?

The biggest mistake you can make when making my trades is picking one of my recommendations and betting everything you have on that ONE company. I urge you not to “bet the house” on a single stock. That’s an easy way to lose your money in one fell swoop. Instead, you should diversify and own a series of different holdings in your portfolio to limit your exposure to any one company.

Since this has been a problem in the past, I’ve come up with an easy-to-follow system, essentially based on common sense. I call it my “10/100 approach” …

Let’s say you have $1,000 in your True Momentum account. If you use my approach, you should buy a maximum of 10 shares per stock, or $100 per stock. You want to have between eight to 10 stocks in your portfolio.

If you have $10,000 in your True Momentum account, you should buy a maximum of 100 shares per stock, or $1,000 per stock. Again, you want to have between eight to 10 stocks in your portfolio. However, you can choose to over-diversify and buy an equal amount of each position I recommend. That way any single stock could go up so much that it could more than offset even a string of losers.

The whole idea here is to get you to spread your bets.

Lastly, to make sure that you never miss out on big winners or over bet on a loser, I suggest that you buy all of our stocks in equal amounts. For example, if you put $1,000 into one stock, I suggest you do that for every other recommendation you choose to invest in.

7. How to manage your losses.

11

While our goal is always to make money, I’m not going to bat a thousand. No one does. Not even Warren Buffett.

So at some point, one of the stocks I tell you to buy is going to go down. Stock markets can swing wildly from day to day, and in the last nine years, we’ve had three flash crashes where stocks fell 10% in a few minutes. We’ve also had two mini bear markets. And there have been weeks when the whole financial world looked on the verge of collapse.

Since we can’t make money if we keep taking big losses, we’re going to pursue a 30% stop-loss strategy for most stocks.

Here and there, if there are special conditions that warrant it, we may push this higher or lower. Don’t worry — I’ll send you an alert when this happens.

We always use closing prices to calculate our stop-losses. That’s because intraday prices can swing wildly.

Flash crashes can happen in a few minutes, and then prices recover. So intraday prices are unreliable as a gauge of the true price of the stock on a given day.

However, closing prices are real and backed by volume. That’s why we want to use closing prices to figure out when our stop-losses are hit.

To follow this strategy, you have to commit to being OK with rebuying the stock. Many people have a problem doing this because they think the stock has lost its luster. But just remember that we’re in this to make money — and that I’m working off 25 years of experience. Sometimes, the best stock to buy is one we’ve already sold.

So understand that if a stock regains its GoingUpness, we’re going back in — even if we were previously stopped out. This is where you’re going to have to trust my system. I’ll only put us back in if I truly think the stock is back on track. Of course, if you don’t like this strategy, you don’t have to follow it. That’s your prerogative.

Investors who track their portfolios every day can use more advanced strategies to manage their losses. One strategy that I like is selling a stock when it drops below its 10-day moving average. If you want a longer time frame, you can sell if the stock drops below its 50-day moving average.

In the end, this strategy will save us money when a stock doesn’t have GoingUpness anymore. In fact, this is why the elites on Wall Street disapprove of it. They say you can’t time the markets that way. You should just know that this is, to be blunt, BS. They need you invested to make their fees, commissions and bonuses, so they never want you to sell. But sometimes, selling is simply the right path.

8. How to manage your profits.

Let’s say your stock has rocketed, and you’re greedy for more — but you don’t want to lose your gains. While many people believe that they should hold onto their stocks forever and milk out every last penny, that’s not the best idea for most people.

The No. 1 rule in gains management is this: If you’re losing sleep over your gains, sell until you stop worrying.

Now let’s move on to rule No. 2.

Let’s say a stock you own has surged, and you’ve found a second stock you want to buy. However, you don’t have the extra money. No problem! Simply sell some of the shares that’ve climbed, and use your returns to buy the new stock.

A rule of thumb is to sell half of your position when a stock becomes bigger than 25% of your portfolio.

Then, put your gains to work in a new stock.

9. How to use “house money.”

What’s house money? House money is when your stock goes up 100%. In other words, you’ve made so much

12

profit that you can take your own money off the table. To do that, sell half of your position when a stock you own goes up 100%.

Let’s say you put $1,000 into a stock. It’s now worth $1,000. So if shares rise and you sell $1,000 worth of stock, you’re suddenly playing with house money. In other words, you have nothing to lose. The stock might go up another 100% or stay at its current level. Whatever happens, you can only gain.

For True Momentum, I’ll let you know when we have “house money” in the portfolio, and if we should make a “house money” sell.

10. Finally, use your stocks to live a little better than you would without them.

So many people believe they need to hold their stocks forever. Personally, my philosophy is that when you make money in stocks ... use your return for something useful. For example, I’ve used gains to buy houses, land, cars and vacations.

It’s my philosophy of life. My father had money but never enjoyed his life, and on Wall Street, so many of my business associates never used their profits to enjoy their lives. But our lifetime is limited. No one knows the future for certain, so, for me, a good experience is worth a lot. The whole point of having money or wealth is to make our lives a bit better.

So sell your stocks when you have gains from time to time. Use it to buy a house, a car or a vacation, or pay for college. Buy your sweetheart a beautiful gift. Because you can’t eat your stocks or live in them. You can’t hug your stocks. And they won’t love you back.

Stocks are a means to an end, and our time is more valuable than any stock. To that end, I plan to make your time using this service valuable and worth it. With the GoingUpness system, in addition to my True Momentum indicators, you’ll get the chance at the big gains Wall Street doesn’t want you to know about — and the chance to make your life a little better. Let me guide you to it. I promise you it’s never too late to get rich or to improve your life through the stock market.

Again, welcome to True Momentum. And please know that if you ever have any questions, you can always reach me at truemomentum@banyanhill.com. As I said earlier, I will not have time to answer your inquiries individually, but I’ll at least make sure to address your concerns in my writing.

Regards,

Paul Mampilly

Editor, True Momentum

13

Banyan HillP.O. Box 8378 Delray Beach, FL 33482 USAUSA Toll Free Tel.: (866) 584-4096

Email: http://banyanhill.com/contact-us

Website: www.banyanhill.com

LEGAL NOTICE: This work is based on what we’ve learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It’s your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don’t trade in these markets with money you can’t afford to lose. Ban-yan Hill Publishing expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers. Such recommendations may be traded, however, by other editors, its affiliated entities, employees, and agents, but only after waiting 24 hours after an internet broadcast or 72 hours after a publication only circulated through the mail. Also, please note that due to our commercial relationship with EverBank, we may receive compensation if you choose to invest in any of their offerings.

(c) 2018 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and treaties. This report may only be used pur-suant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482 USA. (TEL.: 866-584-4096)