Dear Fellow Investor,

Many investors were hoping and praying that 2008 would bring an end to the market volatility that plagued the end of 2007, but no relief has come. It has truly been a frustrating few weeks as the market has whipsawed back and forth, leaving many scratching their heads as to where to put their money. And that's what I want to talk to you about this week.

I must stress that now, more than ever, is the time to be very clear in your investment planning and decisions. I have some specific thoughts on how you should structure your strategy today.

Even though I was well-trained as a trader at Goldman Sachs, the most successful firm on Wall Street, I've found that investing instead of in-and-out trading in Chinese stocks with long-term potential is the most profitable route to take—especially in a volatile U.S. market. Although as a professional trader I'm used to buying and selling the same stock over and over to take advantage of various short-term price levels, I've found that you can miss out on the big winners with that strategy—especially when it comes to investing in China. I don't want you to miss out on a potential 1,000% gain in the next 10 years just to avoid a temporary 20% dip.

China Is on a Roll

Stocks across the globe have been having a rough time lately–except for Chinese shares. Last week, the only major Asian market that climbed was China's! The Shanghai Composite A-share Index gained 2.3%. China has avoided losses like we've seen here in the U.S. because the Mainland Chinese stock market is mostly closed to foreign investors. I expect to see more divergence between the two markets going forward as the Chinese economy continues to strengthen while the U.S. economy weakens. This means robust balance sheets for our China Strategy companies that are based in the Mainland. Become a China Strategy member now and I'll give you instant access to all 22 names on our buy list. A whopping 13 of these companies are true China plays with headquarters in the Mainland. Diversify your portfolio with companies from one of the world's strongest economies!

This is a very real possibility, and many investors don't realize the damage that selling a stock out of panic can cause. To take a recent example, if my China Strategy subscribers had sold the solar play that I was recommending through the August sell-off, they would have missed out on the gain of about 67% that the stock has provided since then. If they had sold our advertising play in that same sell-off, they would have passed on a gain of nearly 20%. Are you interested in learning more about these long-term opportunities that can weather both up and down markets? Click here for details.

If the opportunities you could miss by short-term or panic selling aren't enough to get your attention, here's something else to ponder: You could be unnecessarily handing over your money to Uncle Sam. The U.S. tax system definitely favors long-term investing over short-term trading. Long-term gains are taxed at only 15% while trading gains are generally taxed at much higher rates—up to 35%. Unless a trader is really skilled, it doesn't pay to trade in and out of a high-quality stock that's likely to move up sharply over time. Don't let the government get more of your money than you absolutely have to.

This is not to say that you shouldn't sell stocks that don't have what it takes to grow in the coming months and years. I'm a strong proponent of cutting your losses when you need to and letting your winners ride. However, in a market like we're in now with wild swings in both directions, stop losses may hurt your portfolio and cause the consequences I've just talked about. If a stock reverses its upward trend, a stop loss can protect your profits and get you out before it falls farther. But I've generally found that you can get in much more trouble by letting an automated program sell for you.

This is why I don't recommend stop losses in China Strategy. Instead, we're earning our big gains by focusing on the long-term potential of our stocks and the unstoppable trends that are driving them. As long as those remain positive, the best strategy for us is to endure short-term volatility in exchange for bigger profits over time. Click here to learn about all of the benefits of becoming a China Strategy member. Each of the stocks in our portfolio gained an average of 35.6% last year.

We're extremely lucky to live in a time when unprecedented wealth is being created and shared by so many people around the world. Even though the major market indexes in the U.S. are down so far in 2008, there are opportunities to make money in global markets. I hope that you will join me at China Strategy as I continue to recommend stocks that are set to profit from the unprecedented growth happening in China today.

P.S. While the market has taken a hit this week, one of our China Strategy plays has been climbing. Shares of our online game operator have jumped about 16% since Friday's close. If you want to make similar market-beating returns in your own portfolio, join China Strategy today. Don't miss this opportunity to profit from China's historic growth!