Trends – they are all around us, and there is a way to make a ton of money from them…
…but ONLY if you are paying attention. Let’s break down the 4 major ways to recognize trends in the Stock Market so that you can invest in them and be ahead of the curve.
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I want you to be able to recognize major trends so that you are able to recognize them and invest before they become main stream.
What is a trend?
A general direction in which something is developing or changing. (I am not speaking about a trend in respects to a stock chart, that is another category. This is in regards to life circumstances or specific industries.)
The key to spotting any trend is knowing what’s going on in the world around you.
If you do not pay attention to what is going on, you may miss some major trends. There are a few things to especially pay attention to in order to provide a unique investment opportunity or at least insight into a trend or new process is developing or changing.
You especially need to be aware of…
1.) A Revolutionary New Product / Category
Is there a product that is making big noise and gaining attention as the next big thing?
For example, when the first automobile was created – that was revolutionary! You are getting around with horse and buggy then all of a sudden you have this thing with an engine.
In that era, it created a new product AND a new category – that thing did NOT exist before.
I think about my parents who migrated from the south to Michigan in order to get jobs in the automobile industry, because Detroit was the “motor city”.
And I remember thinking – how in the world did we not get any shares of stock? My dad worked for GM. People were moving across the United States in order to get jobs in order to build cars.
You have to be aware.
I remember asking why we didn’t snatch any stock and she said, “We were just worry about getting a job and paycheck”.
How many people to this day are right in the middle of something huge, of a major trend, and they just don’t see it?
Think about when computers rolled out. You have these new small machines that are able to transform the ways things were typed, and they especially took off when the internet became a major success. This was another revolutionary category – because this category did not exist before that!
Then you have all of these internet boom companies that came from it – like AOL and Yahoo! just to name a couple. Then you have the Googles of the world start to come about.
And we LIVED through that! If you’re like me, you remember dial-up internet. You remember downloading music off of Napster. We would download it at night because it took so long to download anything you had to leave it on overnight to get it downloaded!
Then it morphed… we could get an album downloaded in 15 minutes. Then it became 3 minutes. Now it’s like 60 seconds or LESS.
Another HUGE new category that we are currently in is Social Media. There was never as something as big as “Facebook” before. And back in the day you needed to have a college email to open one, then they opened it up and it BLEW UP – now it’s a billion dollar company.
Then YouTube came along. And Google bought it for 1.65 BILLION bucks.
But are you paying attention? Did you think to yourself, “Hmm why would a company literally spend billions of dollars on another company?”
Here is one last example: Think about when Apple invented the iPad. Again – this was an ENTIRELY new category. If you were only on the consumer side and thinking about buying it, you missed the entire run up with that stock.
2.) Revolutionary Enhancements to an Existing Product
This would be something where the category already exists – but the product is super enhanced.
I used to work for Sprint and then Verizon Wireless, and I remember when I was at Sprint and we had all those phone with the green screen. And Blackberry came around and they were the baddest awesomest smart phone around. We were selling them like crazy! They had the corporate and family game locked in as the customers.
At this point I am into the Stock Market. I had bought like 100 options contracts on Blackberry. It was the day before their earnings were due, and I remember thinking, “We are selling a ton of these phones we can’t even keep them on the shelves. Every type of customer loves them.” So I paid attention and got 100 contracts with them. They announced earnings and they blew it out of the water!
I was just aware of the trend of all of the phones being sold with Blackberry and got a piece of the pie. I made about $45,000-$50,000 in 24 hours.
And then all of a sudden, something called the iPhone came out. I remember thinking… they can’t take over our Blackberry clients. But then they did. They checked off all of the boxes of everything someone wanted in a phone. Blackberry couldn’t keep up with what the iPhone did.
I saw the growth and death of Blackberry. They started missing earnings and no one wanted one anymore.
Typically there is a winner and a loser when is comes to revolutionary enhancements.
Apple didn’t invent the cell phone – but they did invent the iPhone. Blackberry was the loser, and iPhones took off as the winner.
As another example… remember when cameras went digital?
Before we had to develop our film, get it at the store, had to find your envelopes of photos…. Then it went DIGITAL. You could see it right here, right now.
This is a clear shift that made no one want to buy the Kodak cameras with film anymore. Companies who made memory cards were now the winner.
You have probably lived through a few major trends already – but you haven’t capitalized on them.
I want you to now start to pay attention. Sometimes it is not until we look back that we realize that it was a big deal.
There is a current potential trend that I want you to be aware of in the automobile industry – and thats from moving from gas to electric. It may take awhile for it to catch on. But if you think about the fundamental shifts… you may see the decline of GM and Ford and start to see people shift over to electric cars and start to see electric cars.
Cars themselves aren’t new… but I think some car developers need to pay attention so they do not become the next Blackberry.
3.) Revolutionary New Process / Delivery System
Just as an example – the Cloud comes to mind. People used to store things on their floppy disks or hard drive. Now you see a digital transformation where you can now access information from anywhere in the world. That is starting to happen with government documents and other major companies.
This is a new process – storing old information in a new way.
Another example is Netflix – this is a new delivery system, a new way to watch movies.
There is no more going to the video store and then popping it in the DVD player and then needing to drop it back by a certain time. They made it super easy… Netflix takes it from their servers and now you can watch it on your TV. You don’t need to buy a DVD player anymore.
I made a nice penny off of Netflix. When I worked at Bestbuy… we used to push a free subscription to Netflix… and I used to think, “These guys might be on to something”.
4.) Changes in Law
This is a big one. Typically changes in law create new opportunities.
Ask yourself, “Is something illegal that is now being made legal? Is there something that used to be optional and now it is mandated by law?”
Who stands to benefit for it? From a money stand point, where is this trend going to take us?
Take for example health insurance, when it became mandated by law. All of a sudden, you saw health care and insurance companies take off.
Or another big one that is currently happening – medical and recreational marijuana. At first it was all controversy, and then one by one you have countries and states approving it legally. It just passed in Michigan. This is a thing! I need to pay attention to it.
In fact, we just did a whole case study with our members inside of Power Trades University where we made a hug return on a marijuana stock, you can click here to check it out.
This was one where Canada was partnering was US companies for states that were legal. As soon as I reviewed the stock with the members, we pulled a 100% return in 7 days.
Are you paying attention to changes in law and these trends, so you can be ahead of the curve?
Here are questions I want you asking yourself when you review these 4 topics:
- Who is the clear winner and who is the clear loser? – Because not only can you make money on a stock going up, you can also make money on a stock going down when you use put options.
- Who supplies the parts that the main company that is spear-heading the new product or category? – For example, when Apple created the iPhone and iPad, find out who supplied the chips, chords, etc for them to create those products.
- If this law is passed, who stands to benefit from it and who stands to lose from it? – Typically when there is controversy, there is opportunity.
- If a new process is adopted, will it make sense to use the old system and how long until the new system is in place? – For example, with the Cloud is there any reason for people to keep using file cabinets?
These are all of the different ways that you will be able to take advantage of GETTING AHEAD of the trend.