Capital Structure: Projects that have a sufficient sponsor equity contribution will receive more interest than those projects looking to move aggressively up leverage curve.

Entitlements: Projects that are fully entitled and permit ready will attract more interest than early stage projects.

Market Feasability: How many units are you building vs. how many competitive units are currently available for sale. How many competitive units are coming online during time period that your project is being built and how many units does market absorp each year? What are your per square foot sales prices, how do they compare to market, and is your location, construction quality and ammenity package in line with that of comparably priced projects?

Marketing: Who is going to sell your units and do they have a strong track record of selling condos within market you are building in?

Presales: What type of presales have you been able to generate? The higher percentage of presales, more are lender interest you will attract.

The bottom line is that good projects from good sponsors will always receive interest from capital markets.

If in marble game your portfolio had grown from starting $100,000 to $200,000, and you want to stick with your 5% rule, then instead of investing $5,000 on your next investment, you'd go with $10,000. Your risk stays same (a $10,000 investment in a $200,000 portfolio is same as a $5,000 investment in a $100,000 portfolio), but your potential for profit escalates because you have more money in play. Similarly, if you happen to start out with some losses, you only risk 5% of what remains in your portfolio.

For your initial investment and for all subsequent investments, you should never take on a bigger risk than you're comfortable with. And you should have a systematic way of investing that ensures that no matter how size of your portfolio changes, you'll continue to maintain that same risk level.

We advise never to have more than 2% of their capital at risk in any one position. But remember, that doesn't mean that you can only invest 2% in any one position–it means you shouldn't have more than 2% at risk.

To illustrate this 2% rule, let's look at a $100,000 portfolio. If you follow The Oxford Club's rules for 25% trailing stops and 2% risk, maximum you can invest in any one stock at any one time is $8,000. Here's formula for figuring that out... [(.02 x 100,000)/.25]. Now here it is "spelled out": .02 times 100,000 = 2,000, divided by .25 = 8,000.

If you decided you wanted to put less at risk–1% of your capital–our formula would be [(.01 x 100,000/.25] and your limit would be $4,000 in any one stock.

The central message here is consistency: Decide on how much you want to risk... and then stick with that number no matter what. Stay with low-risk ideas... have a consistent exit strategy for stock market... and you'll begin to make money just like world's greatest investors.

Let Your Winners Run–"Scale" Your Way to Ultra-High Profits

The basic reasoning behind scaling technique is that once you've found a winner, you absolutely don't want to sell it. Instead, you want to put more money into it...

So far we've seen exactly how your portfolio will benefit from strictly following The Oxford Club's 25% Trailing Stop Strategy. And you've seen how following position-sizing opportunities keeps your capital safe while letting you rake in maximum amount of profits available. That's a perfect combination.

In scaling in, you'll be using a similar rule to what you learned in our look at trailing stops. Only this time, instead of selling when your stock falls 25%, you'll be adding to your investment when–and every time–it rises 33%.

At about this time, average investors will begin to worry. That's because to them idea of adding money to a stock that's rising is every bit as frightening as selling a stock that's falling. Once again, emotion has come into play, and it threatens to get in way of your profits.

But by this time, you should be beyond that. You've seen how being afraid to sell a falling stock can hurt you, so you understand negative role emotion can play in investing. What's more, you should be able to appreciate how investing more money into a rising stock can help you...

One of best examples that we can use to illustrate power of scaling in involves French telecommunications giant, Alcatel. When we first recommended this company to members it traded at a price of $22. We rode stock all way up to a 108% gain before selling it on way down when we ultimately pocketed 78%.

The fact that we gave back 25% off stock's top didn't bother us a bit. After all, every $10,000 our members invested in Alacatel had blossomed to $17,000–and this money was safe from any further erosion in stock's price. But here's how you could have done much, much better with Alcatel.

Rather than just sitting back and watching their winning positions climb, world's best investors will "feed" their successes more money–so that there's more capital on table to take advantage of high profit that will be thrown off by these winning rides. And, of course, they always know how much additional capital to add because they're using position sizing technique.

As you've seen, our advice is to not put more than 1% or 2% into any one stock market investment or 1% in subsequent scale-ins of that investment. In other words, you put 2% in to start investment, and then if it climbs 33% for you, you add another 1%... another 33%–another 1% goes in, and so on. I'll illustrate this principle using a very simplified scenario, but I will use a 2% scale-in to emphasize effective use of scaling in...

Let's suppose that after your initial investment in Alcatel–and for subsequent 14 months–the size of your portfolio was such that 2% equaled $4,000. That would mean that if Alcatel had gone up 33%, you'd be in a position to feed this investment with another $4,000.

As we saw, Alcatel in fact rose 108% after The Oxford Club recommended it. Which means that you would have had opportunities to do three "scale-ins" of $4,000 each. This scenario is played out in chart above.

By adding $4,000 each time this stock went up 33%, you would have maximized your profit from it during 14 months The Oxford Club recommended it. So instead of a $10,000 investment growing to a very respectable $17,000, your total stake in Alcatel would have skyrocketed to $43,514.95!

The reason we recommend you wait to do initial scale-in until your investment has risen a full 33% is that by that point you're guaranteed never to lose any money on stock as long as you get out at trailing stop. Because you'll be using a 25% trailing stop, very worst that could happen to you at this point would be for stock to return back to point at which you bought it–a wash, in other words.

An Ideal Profit and Safety Scenario Unfolds...

These secrets are used by 99% of world's most successful investors, and are now yours to apply to your own investments.

At end of day, these secrets–limiting your losses and maximizing your profits–seem to spring from just plain common sense. The problem, of course, is that common sense is an extremely rare commodity in world of investing. Many investment advisors, newsletters, mainstream media financial TV shows, and Internet "gurus" make a living out of complicating process with their own forms of investment advice, rather than simplifying it.

After all, more complicated they make it, more mysterious it seems. And more mysterious it seems, more it can play on emotions of investors. And more emotional investors get, more they'll turn to these very same self-proclaimed experts for "investment advice." It's a vicious circle.

Good investing,

Dr. Steve Sjuggerud

(See Parts 1 and 2 of this white paper by searching this web site by Author's Name for ‘Steve Sjuggerud.’)