These days, investors are bombarded with a lot of chatter from the market.
On any given day, you might come across a dozen articles online claiming the market is in-store for a major bull run, only to see a news report claiming the next recession is just around the corner, not even an hour later.
With the market presenting you such a mixed bag of opinions, how are you to know what investments you can actually trust?
Simple: just ignore it completely.
Now, I know that might sound like a stretch, but trust me, it isn't.
The market -- and its thousands of pundits -- often panders to what I think is an investor's absolute worst enemy: their emotions.
Whether its fear, optimism, excitement or panic, many investors have a way of letting their emotions completely cloud their judgments. And often times, that can cost them a big gain or lead them to some hefty losses.
The truth is ignoring the market allows to you completely take the emotion out of investing. And by doing so, you are able to make much more rational decisions on how to position your portfolio.
Just think back to 2008: the financial crisis was in full-swing, the market was down 43.4% and overly optimistic investors were taking huge hits waiting for a potential rebound that would take months to come to fruition. And even when the upside arrived, investors had to wait five years to get back to even.
Yet rational investors, who focused on the numbers, rather than on what the "experts" were anticipating, would have cut their ties with the market five months before it hit its bottom -- completely sidestepping what surely would have been crippling losses.
And those same rational investors could have noticed the market's rebound just four days in and set themselves up to prosper from what has been an epic five-year bull run.
So you might be wondering, "How do I do it? How do I take the emotion out of investing?"
The answer is a new investment system we, at StreetAuthority, have been quietly beta-testing for more than 18 months. And after a year and a half of research, we're finally bringing it to the masses.
We call it the Maximum Profit system. And it solves one of the most common problems every investor faces -- how to get bigger gains in a shorter amount of time.
It does so by focusing on two distinct characteristics that every stock possesses. These indicators signal when a stock is about to enter a "growth window," alerting you that now is the optimal time to buy.
After doing some back-testing, we found that the Maximum Profit system would have earned investors a whopping 570% over the past decade.
So how does it work? Well as I said, Maximum Profit uses two unique indicators.
They aren't widely-known. You won't find them on any balance sheets, income statements or SEC filings. Yet when you combine them, they can help you get in on a stock's upward trend, earn bigger gains in half the time and avoid substantial losses.
The first indicator is relative strength (otherwise known as momentum investing).
Simply put, relative strength tells us how fast a company's share price is moving upward by comparing the past six month's performance of a stock to the entire market.
Stocks outperforming 70% of the market are considered "strong" relative to their peers. And studies have consistently shown over the years that stocks that are currently performing well are likely to continue doing so in the future.
Take Sasol (NYSE: SSL) for example. Our system flagged it on September 13, 2013, right as it was beginning to show an uptrend. As expected, it quickly jumped higher. Then, after about a year, Sasol's run came to an end. This caused its relative strength to drop, signaling a sell.
There have been hundreds of academic studies performed on relative strength to prove its effectiveness. One in particular found that stocks with relative strength -- essentially those in an uptrend -- produced compound annual returns of 15.2%. Meanwhile, stocks with no relative strength returned just 4.5% per year.
You see, there's no need to watch the latest news report or read dozens of in-depth analysis on where the stock market is headed. Using proven indicators like relative strength helps us take the emotion out of investing to return some truly outsized gains.
And if you think relative strength is impressive, then our second little-known indicator might just be even more-so. In fact, stocks that showed strong numbers in this category have crushed the market nearly 3-to-1 over the last five years.
Now, I can't give you the name of this second indicator right now. But I can tell you that by combining these two triggers, our Maximum Profit system has delivered investors some incredible gains like...
...all in less than 13 months.
It's not complicated or gimmicky. It simply takes the guess-work out of investing and allows you to make rational decisions. That way you can get the majority of a stock's return with a fraction of its losses.
In truth, Maximum Profit was our most profitable investing system at StreetAuthority in 2014. And now, we want to share it with you.
To get more information on how to take the emotion out of investing -- and learn the second key indicator we use to crush the market -- simply click here.