Sunday, March 31, 2013

2 Different Ways to Play a Life-Changing Trend

When you are following a powerful investment trend, I have a technique you can use to quickly and easily expand your investing horizon. If you add this one additional angle to your trading toolbox, you can realize impressive gains along the way to your ultimate long-term payout.I’m talking about adding shorter, more time-sensitive investments to compliment a bigger idea. By playing the long-term and shorter-term facets of a trend, it is possible for you to take faster profits — all while waiting for as your investing trend to finally reach maturity. Technology correspondent Patrick Cox has been following one of these life-changing trends from the very beginning. I’m talking about nutraceuticals. If you’ve been keeping up with this important story, you know that nutraceuticals are substances derived from foods that are either synthesized or purified, and sold for health benefits.Nutraceuticals have been steadily gaining prominence for some time now. But new technology has broadened and accelerated growth in this small industry. And Patrick’s research indicates that the market is getting closer to widespread acceptance and use of these unique products.“Those of us who have examined the science know that this is a world-changing technology. Ultimately, I believe it will prevail.” Patrick says.Patrick has recommended two companies heavily involved in the nutraceutical sector to his readers. With these recommendations, Patrick is looking to ride the longer-term rise in the nutraceutical trend. The companies he has recommended are the best, most innovative forces behind the nutraceutical movement.In short, Patrick believes the companies behind these substances could lead to the biggest market story in history.“Things we thought were impossible are coming to pass on a regular basis,” he writes. “To prosper, we’ll all have to re-examine practically everything we thought we could take for granted…”That’s why Patrick is searching for these transformation companies. He wants to find the firm that can one day become a household name.Patience can be crucial when dealing with these kinds of investments. That’s why I encourage you to supplement your longer-term buys by finding the companies that stand to immediately benefit from the trend. Not only does this offer you the chance to book profits along the way to your ultimate goal, it also alerts you to important milestones in the life of your idea.These positive signals are important. After all, when the shorter-term trends begin to align in favor of your longer-term ideas, you know you’re onto something…That’s exactly the kind of angle we’ve been taking with our small-cap investing strategies. In the last several months, my co-editor Jonas Elmerraji and I have talked a lot about taking a “tactical” approach to buying and selling stocks in our portfolio. From our standpoint, being tactical means seeking out cheap stocks from a value perspective and then entering a position using various market timing techniques.Of course, this strategy sometimes points us in the direction of a much bigger investment trend. This time, our paths have crossed with Patrick and his nutraceuticals. Our research has led us to a shorter-term play on the raw ingredients that go into various nutraceutical products. I’m talking about omega-3 fatty acids. Omega-3s have been found to defend against heart disease, alleviate arthritis, and improve brain and eye function — so it’s no great shock that this substance is in high demand from health conscious consumers right now.This small-cap company’s products are used as everything from feedstock for animals and plants to key ingredients in high-priced nutraceutical for humans like you and I. And with both the timing and fundamental factors lining up in our favor right now, we were eager to jump on this stock for our premium readers.While the time horizon for our investment in omega-3s and nutraceuticals might be considerably shorter than Patrick’s, we’re both after the same goal: to make considerable gains by riding a key health trend.

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