How to find the most explosive stocks in the market … while sidestepping the emotions that tend to trip us up
It was in early 2015 when I got greedy.
A friend had told me about a new trading system he had developed which was allegedly printing money. I’m like everyone else — the idea of easy money was alluring.
So, after some cajoling, he filled me in on the details his system. It was a risky day-trading approach that had me in-and-out of trades lightning fast, sometimes in as little as 10 minutes. The system was partially based on charts and partially based on “gut feel,” which I was told I would develop.
How did it turn out?
Now, sure, there were some problems with the system. But there was another, even bigger problem …
What happened a great many times is that I would hop into a trade, which would go well for a few moments, only to reverse against me. This would lead to sudden panic, visions of homelessness, followed by an emotional, fear-based “sell” at almost always the worst possible time.
The trade would then re-reverse, and climb higher. Of course, on the days when I mustered the fortitude to remain in the trade if it went against me, it would seem that the selloff would only intensify, and I would lose even more money.
I learned something important through that process — there’s no way I could ever master the markets until I first mastered my emotions.
Frankly, I still haven’t mastered them … which is why I’ve increasingly become a believer in quantitative investing — basically creating smart, rules-based systems that make the buy/sell decisions for you.
In essence, it’s a way for me to short-circuit the biggest threat to my money — me.
***Our own Louis Navellier is one of the most respective, successful “quants” in the investment world
That’s why I’ve found myself gravitating toward Louis’ market approach for a long time now.
In his four decades of investing, Louis has always been a numbers guy. Even in his early days, he was using Wells Fargo’s powerful mainframe — in those days it filled an entire room — to create algorithmic models that outperformed the market.
In the years since, he’s further developed these models, resulting in one of the most respected track records in the investment community.
And for good reason — his models forecasted some of the biggest stock market winners of the past 40 years. They identified Apple at $1.38 … then there was Oracle, when it was trading at only 51 cents per share … they even forecasted the rise of Amazon when its price was just $46.
MarketWatch called Navellier “the advisor who recommended Google before anyone else.” And Forbes gave him the title “King of Quants.”
Louis’ decades of experience and the refinement of his quantitative approach to the markets have resulted in a core takeaway: better investing comes through computerized market analysis.
With this in mind, I want to put an event on your radar that’s happening next week. It’s something Louis calls Project Mastermind. It’s happening on Wednesday, October 9, at 7 p.m. Eastern time.
In short, Project Mastermind is a market approach that uses the predictive power of computers to identify stocks that are on the cusp of price breakouts.
Unlike the system my friend told me about, there’s no “gut feel” involved, no room for our emotions to trip us up. It’s an objective approach rooted in cold, impartial numbers as well as one fundamental belief — mathematics and computers offer a tremendous advantage in the investing world.
So, in today’s Digest, let’s look at Louis’ new project in more detail before the big event next week.
***Better investment results come from a smarter approach
Regular Digest readers are familiar with how I usually describe Louis — he’s a “quant,” or a numbers guy. Given this, his market approach is rooted in math, models, and impartial rules.
Now, the benefit of this approach isn’t just that it circumvents our human emotions, which often trip us up. A computer/numbers approach also is able to perform analysis on a far more robust scale than any individual investor would be able to do on his own.
Let’s take a peek at what goes into Project Mastermind to see how this works.
Every public company has millions of data points that are related to its business and its stock price. There are data points related to its fundamental business, then data points related to the macro environment, then there’s timing — are we looking at data that’s more relevant to shorter-term price movements or longer-term movements?
Frankly, the volume of information that could be analyzed is dizzying.
Louis’ new system sorts through this huge universe of factors and focuses on the select few that are most predictive of the stocks that are most likely to make big moves in a short period of time. We’re talking months — not years.
But to do that, you need superior computing power. And that’s where Project Mastermind comes in.
***Creating Project Mastermind and the early results
Louis began creating his system based on his four decades of investment experience. This informed his understanding of which factors make the biggest difference in short-term price movements.
With his team, he then tested and refined his model, focusing on a handful of inputs — the essential metrics that best-predicted a major jump. These are now the foundation of Louis’ model.
So, what are the results?
Louis has already found a pharmaceutical company called Depomed, which delivered 169% gains. There was also a biotech called Repligen that jumped 311%. The model also found Santarus just before it went on a 613% run. There were a great many others as well.
***This is just the overview of Project Mastermind
I hope you’ll be able to join us next Wednesday, October 9, at 7 p.m. Eastern time for more details. If you’re like me, and you find your emotions getting in the way of your investment goals, join us to see how Louis’ system combines data and technology to find stocks that can skyrocket quickly — often in only a matter of weeks or months.
Louis will show you how his approach can remove speculation and guesswork, and enable the predictive power of a quant system to work for you.
(Project Mastermind is) unlike anything you’ve ever seen from me before. Now, for the first time ever, I’m finally ready to unveil it to the public.
Completing Project Mastermind was a huge milestone — the culmination of my life’s work …
The impact this could have on your wealth is incredible … enabling you to “catch up” on your retirement in no time.
Click here to RSVP for the event.
Have a good evening,
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