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The Single Most Devastating Investing Mistake

July 11, 2008

By Michael Murphy, Editor, New World Investor

Meet the Expert
Michael Murphy

Michael Murphy

As editor of New World Investor, Michael is one of the nation's leading experts in exciting technology industries. He began his career in the industry's infancy, first as COBOL programmer and mainframe systems analyst, then as the technology stock analyst for American Express in 1970, and later as the CEO of two software companies.

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Millions of investors are making a crucial mistake right now.

When the Dow dips over 1,200 in a month, it hurts. But what investors do immediately following a major selloff will make or break them for years to come.

You see, when the market free falls, investors scramble for the next hot stock tip that's going to get them back on top. They want a quick fix and start jumping on stocks that are "about to turn around any second." What they don't know is that not all stocks will return to their previous glory. The truth is, you can't just look at blips on a screen to know where to put your money.

If you're looking to make some serious profits, avoid investing in short-term guesses and companies built on hype (see also, "You Still Need Stocks, Just Not the Headaches!").

Instead of putting all of your faith, and money, into fast trends that could potentially leave you and your investments in the dust, I recommend investing in MegaShifts. Unlike fads, MegaShifts are unstoppable trends with the ability to change people's lives–no matter what the market does.

By searching long and hard for companies belonging to sectors that are continuously benefiting regardless of the current market environment, these sectors do more than just survive today's volatile market, they flourish.

Let's take a look at winning sector, I call the New Energy Technology MegaShift.

New Energy Technology MegaShift

This MegaShift originally started with Hybrids & Hydrogen stocks, and we made a good deal of money in Toyota (TM) and Energy Conversion Devices (ENER). Recently, we expanded it to a Green Tech MegaShift to include solar, wind, geothermal and ethanol stocks. But the transition from the oil-based economy to the hydrogen-based economy is going to take decades, and there is a lot of new energy technology coming along to find more oil and ways to use it more effectively (see also, "Can General Motors (GM) Pull a U-Turn?"). For example, the hybrid car is both a way to use oil more effectively now through higher gas mileage and to road-test the drivetrain for the hydrogen fuel cell motor, which is coming later.

I kept my eyes on the bigger technology and energy picture, and realized that any part of the energy chain where applying new technology will make a major difference can bring in massive amounts of profit. With this realization, I decided to expand in order to avoid limitations in this sector that seems to have endless opportunities. Thus the New Energy Technology MegaShift was discovered.

In the New Energy Technology MegaShift, I've been able to recommend such profitable stocks as Energy Focus (EFOI), the world's leading supplier of fiber optic lighting, as well as Fuel Cell Energy (FCEL), a company that focuses on stationary fuel cell power plants for industrial and office applications. It doesn't take much to realize that cheap and natural energy sources and suppliers are going to rake in the profit as the price of oil soars. The trick is to discover and invest in this shift in energy technology before the rest of the market.

Michael Murphy helps investors realize their financial goals by investing in the profitable opportunities from new technology MegaShifts. Be among the few who are alerted of the overwhelming possibility to profit by investing in long-lasting hot sectors. Join New World Investor today and begin investing in companies that are about to be part of the next big market MegaShift. You don't want to miss out on these stocks!