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Is Tech Investing Only for Professionals?

Written by Brian Hicks
Posted October 20, 2006

Dear Reader,

Today I'd like to bring you the third in our ongoing series of reports from Wayne Mulligan, editor of Tech Stock Investor.

In this issue, Wayne dispels one of the most common myths about successful technology investing.

Enjoy . . .

Brian Hicks,
Publisher, Quantum Investor

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Is Tech Investing Only for Professionals?

By far the question I most often get asked about investing in technology stocks involves the level of difficulty.

In short, many folks fear that they might need a Ph.D. in computer science just to understand my recommendations.

Since it's such a popular question, I'd like to address in today's email.

QUESTION: Since you write a newsletter about technology stocks, will I need a Ph.D. to understand it? Will it only make sense to technology professionals?

ANSWER: This is clearly one of those "no worries" situations. The issues are easy to grasp, both for beginners and technology professionals alike.

BACKGROUND: When we began to write about my experience in the technology industry, lots of people were stunned by the complexity of some of the projects I've worked on.

Understandably, I got all kinds of email from people worried that they wouldn't be able to understand my stock recommendations, or that they would need a degree in software engineering just to read the issues and act on my recommendations.

Yes, our technology stock research is in-depth.

Yes, it will often be our detailed research and firsthand knowledge of new and exotic technology platforms that will allow us to bring you stock recommendations with tremendous profit potential.

However, I assure you, you will have no trouble understanding any of our analysis and recommendations. When I write my newsletter, I assume that not everybody reading it may even know what an Intel processing chip is.

Let me give you an example.

One of my favorite people in our office here is Stacy Beth, our customer service super-person.

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THE LUDDITE CHALLENGE

Stacy Beth is very good at handling all of the customer service issues that arise on a daily basis in the publishing business. Those are the details I would surely mess up . . . so thank goodness I don't go anywhere near them, and thank goodness she's around.

But Stacy Beth is one of those folks who has neither an interest in nor an understanding of technology. (She has told me on several occasions that she would trade her new Dell computer for her trusty Smith Corona typewriter in a minute!)

But Stacy Beth is also a fantastic proofreader, and because of that, when I launched Tech Stock Insider back in February, I assigned her the job of being our principal proofreader for each weekly issue I send to members.

In her own words, Stacy Beth was "dreading" it. It's not that she minds the extra work-it's just that reading anything relating to technology is like you or me studying a textbook on botany.

As I mentioned above, she has zero interest in technology, so she was afraid that each weekly issue would be, at best, dry, and at worst completely boring and over her head.

Imagine my surprise (shock, actually) when I walked by her desk about a month later during lunch one day and saw her looking up stock quotes on some of the companies I discussed in the issues.

I couldn't believe it-Stacy Beth went from trying to help me find four other proofreaders to suddenly developing an interest in tech investing? No way!

"Um . . . Stacy Beth," I began to stammer as I watched her staring at her monitor like some possessed trader, "Are you actually following all of those tech stocks?"

"Yeah," she replied casually, as she handed me the napkin. "If the Fed lowers rates that should be really good for tech." Her eyes never lost contact with the monitor.

I knew Stacy knew a fair share about investing. But to hear her commenting on how interest rates would affect the tech sector was . . . unexpected

"You seem to really like many of my China stocks," I said as I noticed she had set alerts for just those stocks. "I even see you're tracking news."

Without looking at me at all, she just nodded.

I stood there for a moment, stunned. Of course, she didn't even notice me. After a moment, I walked away in a daze.

BRINGING NEW MEMBERS UP TO SPEED

Of course, not everybody will read each issue of Tech Stock Insider as carefully as Stacy Beth does.

That's why I've created four bonus reports geared specifically to bringing new members up to speed.

One thing of note is that the techniques that I've always used for finding profitable tech stock investments-and they're all covered in the bonus reports-will work in almost any market at any time. Because we don't just look at the technology in a vacuum-we apply a strict proprietary framework that incorporates both fundamental and technical analysis in addition to a thorough study of the technology.

In fact, in the free bonus reports we use detailed examples based on actual recommendations I've made. And since these are recommendations that were made during bull markets, bear markets and flat markets alike, you'll get a good idea of how I find profitable investments in any market environment.

Of course, behind the scenes we spend a lot of time doing in-depth analysis of tech companies and rigorous studies of their technologies. It's the time we put in and our attention to detail that separates us from anyone else out there recommending tech stocks.

The point is that we do all of that hard work in-house, and then we make it our mission to give you the just the useful highlights, with simple explanations that you can act on confidently and quickly.

This may sound unbelievable, but even if you never learn one thing about technology during your time as a member, you'll still probably know more about making money in tech stocks than 99% of your friends and neighbors!

BOTTOM LINE: While the research we do at Tech Stock Insider is in-depth and very technical, the reports we send will always be very easy to understand. And they work equally well for tech professionals and absolute beginners.

Furthermore, you'll never be left wondering what to do after reading one of our Tech Stock Insider weekly issues. Each stock or option we recommend will have precise Buy and Sell prices, along with target holding periods. So you'll know exactly what to do, how, and when to do it.

Until next time,

Wayne Mulligan
Chief Investment Officer
Tech Stock Insider

P.S. I really hope you've enjoyed this series so far. Please look for the next installment-the most important one yet-in just a few days.


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