Investing Systems Beat Shortcuts in the Long Run

Here's why… Published By Money & Markets, LLC. October 08, 2024 Published By Money & Markets, LLC. October 08, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Adam O'Dell]( Editor, [Money & Markets Daily]( Investing Systems Beat Shortcuts in the Long Run Money & Markets Daily, When I began studying for my Chartered Market Technician (CMT) designation more than a decade ago, I recall being more enthusiastic about reading some of the books over others. To me, the material on Gann time cycles and Fibonacci ratios were a bit too “voodoo.” Their analyses more closely resembled a fortune teller reading the lines on a client’s palms than a prudent method of making buy and sell decisions on the markets. On the other hand, I was drawn to the more rigorous quantitative methods of analysis; techniques that really study the numbers that drive financial markets. I was a biology and chemistry major in college. So, when I saw some of the books on my CMT required reading list … Evidence-Based Technical Analysis, (Applying the Scientific Method and Statistical Inference to Trading Signals)… I couldn’t wait to dig in! I got through that material more quickly than any of the other dozens of books in the curriculum. But by the end of it … I was grossly disappointed by this book’s overall conclusion: Which was: Most “trading signals” we’ve heard of don’t work. At least, they don’t work well enough to stand up to the rigor of the scientific method and statistics tests of significance. Bummer! At the beginning of the book, I expected to learn a handful of “Holy Grail” investing strategies. Ones that the book would prove to me “works.” By the end of the book, I came to realize just how difficult it is to find consistent, market-beating trading signals. But not all was lost! I’m a stubborn dude, and after getting over that book’s sober conclusion, I was determined to discover simple ways to successfully trade the markets. And, of course, I’d learned that if I wanted to achieve lasting success … I’d better come up with scientifically rigorous quantitative models, rather than relying on my eyes to make judgments about “little wiggles on stock charts,” as skeptics often characterize the craft of technical analysis. Fortunately, I can now say — more than a decade later — that I’ve been successful at that. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Paradigm Press. [A.I. 2.0 to Open a Brief "Wealth Window" by Oct. 9?]( Genius investor James Altucher is predicting a new generation of A.I. will create a brief "wealth window" in America. It could make crypto look like [pocket change](. [Click here now to see.]( --------------------------------------------------------------- My Own Investing Systems In 2012, I presented my bosses “backtest” performance metrics of a momentum-based trading system I developed. It was based on an age-old principle (sector rotation) and strategy (momentum), both of which I learned throughout the course of earning my CMT. We ultimately launched that strategy in late 2012 … and have been running it live ever since. The service is called Max Profit Alert … and it has helped thousands of everyday investors rack up dozens of double- and triple-digits profits over the years. All I had in 2012 was a statistically-rigorous backtest of my strategy. But now, almost 13 years later, we have hundreds of closed trades under our belts … proving it works quite well! Since then, I've launched multiple other strategies including Green Zone Fortunes, 10X Stocks and Infinite Momentum Alert. All of these services are based around a specific approach to garner outsized gains from the market. Why Systems Work Of course, these strategies aren’t perfect. They go through rough patches, with losing trades and drawdowns. But the thing is … no strategy is perfect. As I learned when I read Evidence-Based Technical Analysis, there’s no infallible “Holy Grail” strategy. The best you can do as disciplined investors is to find a small handful of time-tested strategies … ones that have proven themselves in both academic research and live trading … and then stick with them for the long haul, through their ups and downs. Still, this approach is far better than shooting from the hip … taking “tips” from random folks on internet message boards … or trying to visually “read the tea leaves” in stock charts. If you’re looking for a place to start with longer-term investments in my best high-conviction stock recommendations … then [you should have a look]( at my Green Zone Fortunes service. I use my six-factor Green Zone Power Ratings model (a scientifically rigorous “quant” model) to hand-pick these stocks each month. We provide guidance on the best time to buy and sell each pick as well. No matter what you do, I hope you’ll learn something that took me a while to figure out: there are no “shortcuts” to success in the stock market. Trading a time-tested strategy with discipline is the closest thing you’ll find to a “Holy Grail.” It’s no magic bullet, but it’s your best chance at lasting success in the markets. To good profits, [Adam O'Dell]( Editor, [Money & Markets Daily]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [CHINA'S $1.8 TRILLION SURPRISE OCTOBER COMEBACK]( - [WHAT I LEARNED ESCAPING HURRICANE HELENE]( - [THE LEADING SECTOR IN 2024 IS NOT WHAT YOU THINK]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, 702 Cathedral Street, Baltimore, MD 21201. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. 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To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. 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