Find These Moneymaking Treats Instead of the Tricks Have you stocked up on your candy for the trick-or-treaters coming on Thursday? Perhaps more importantly, have you avoided eating the candy you bought to give to the trick-or-treaters? That would be my challenge. I loved making the rounds and loading up on candy. I still remember getting back home with my loot and trying to figure out what to eat first. I already had multiple pieces of candy just making the rounds, but those were appetizers. The real treats started when you got home. So many candy choices to send your blood sugar soaring. Where to start? There are also enough stock choices to make your head spin – typically more than 10,000 trading on U.S. exchanges at any given time. Which are the best to own? The ones that will send your account soaring instead of your sugar. There’s a lot more to it than reaching into the bag and grabbing whatever you can, hoping it’s something good. Or even spreading your treats out on the table and analyzing them to make your choice. (Not that I would ever do that.) When it comes to stocks, you need an entire process. A system. I start by looking for well-run companies – those defined by superior fundamentals. I want shares of those great companies to also have great technical metrics. And then, I want those fundamentally and technically strong stocks to also be ones that the smartest investors want to own. In other words, I want “Big Money” chasing them. These are the stocks that offer the highest probability of big profits time and time again. Especially right now, when a rare accelerator window has opened to make significant progress to your retirement planning or any other big financial goal. Believe it or not, you’re talking about only 50 or so stocks that meet these criteria on any given day. It’s weird to think about, but that’s probably fewer choices than many kids will when diving into their Halloween candy. Getting from 10,000 stocks down to 50 turns into an almost impossible exercise. You have to know what to look for, and you need the resources to do it. In truth, it’s impossible for any one person – and probably an entire team. That’s why I developed a system that relies on massive computing power to collect and analyze data. Zooming In on the Best A bunch of those 10,000 publicly traded companies are either penny stocks or are so thinly traded (illiquid) that they are not viable investments. They’re too risky for your hard-earned money. Eliminating those immediately brings us down to about 6,000 stocks. That’s still a numbing challenge. My Quantum Edge system layers on fundamental “screens” (filters) to find companies that are beating analysts’ forecasts and delivering blowout sales and earnings. I developed algorithms to look for companies with double-digit sales and earnings growth, hefty profit margins, and low levels of debt. And to find companies that are reasonably valued or even selling at a discount. From there, we add more screens. This time based on a whole other discipline of stock analytics – the technicals. I’m not talking about most would call technical analysis, which is based heavily on chart patterns. I’m talking about the mechanics of how a stock is trading, or what’s really going on under the hood. Think back to your high school or college physics class, and you may remember Sir Isaac Newton and his First Law of Motion – “an object in motion tends to stay in motion.” My system relies on the most important technical metrics that indicate strong price action – stocks in motion that are likely to stay in motion. They have momentum as both growing businesses and rising share prices. Adding the Big Money Detector Then comes what some people tell me they call the “secret sauce.” Through data analysis, I can track the financial footprints of Big Money investors – right down to the specific stocks they’re buying. My career as a trader gave me a front-row seat to how the big institutions accumulate stocks – while trying to cover their tracks as they did so. They used to pay me to do that, so I can tell you firsthand that they take great pains to keep stocks they’re targeting from shooting up too dramatically – a mistake that could trigger a buying stampede. But because I spent years matching up these buyers and sellers, I know how to assemble the puzzle pieces to give me a clear picture of Big Money flowing into – and out of – individual stocks. I wrote algorithms into my Quantum Edge system to identify these hidden signals of institutional buying. When a big player buys a stock, it creates more demand than there is supply. That means there is only one way for a stock to go – up. When all is said and done – when we’ve eliminated the too-small and too-risky stocks, run our fundamental and technical screens, and identified which of the remaining stocks have Big Money flowing into them – we’ve found the best of the best. These are the top stocks to own because they have the highest probability of making you money. Back testing and real-world use show that I can count on seven out of 10 stocks identified by my system being profitable investments. You can build real wealth repeating that process over and over again, stacking profits on top of profits. And the coming six to 24 months represent a rare opportunity to accelerate those profits. I have spent years – decades, to be honest – and millions of dollars developing and testing my Quantum Edge system, and the results really do speak for themselves. It’s a technology-based method for rating stocks that TradeSmith testing showed beat the S&P 500 over 32 years by 7-to-1. It helps finding the best stocks at the best time to buy for the best returns. And that’s a treat at any time of the year. Talk soon, Jason Bodner Editor, Jason Bodner’s Power Trends |
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