The Biggest Mistake You Can Make With a Trading System
Did you know buying stocks near all-time highs is one of the most dangerous things an investor can do.
And yet with the market setting records lately, it may seem like you might have no other choice!
But here’s the thing – you can still make a ton of money at current prices… but only if you follow a few basic guidelines.
The system I’ve developed I use to find stocks ready to enter small but lucrative profit windows.
Today, I want to tell you a little more about how this system helps me find the best pockets of the market to invest in…
Whether the market is soaring, crashing or staying flat as a board…
And with no care whatsoever for what’s going on in politics or the economy.
I’ll also reveal why I’ll never stray from my system again.
As a technical trader with a short-term mentality, my strategy pinpoints mini-cycles that often get totally overlooked by investors.
And what I ended up finding and creating exceeded all of my expectations.
I didn’t just come up with a way to identify “mini cycles” occurring over a period of months instead of years…
I also discovered a “ GO trigger”… a signal that tells me which of these mini cycles are worth investing in and which ones I should avoid.
This trigger is the key to both minimizing risk and maximizing profit when one of these opportunities arises.
And get this…
It turns out when my system detects this GO signal, it is the most opportune moment to collect double and triple digit gains, and get back out, cash in hand, before the cycles head rolls over.
And since I’ve started tracking this GO signal, I’ve been able to successfully pinpoint 68 of what I call my “Green Zone” profit windows.
But it’s not just individual stocks…
How I Use My Cylcle 9 System to Find the Best Pockets of the Market
You see, I’m a math guy. And when I set out to find these mini cycles I knew that whatever system I came up with had to be generic enough to apply everywhere.
I didn’t want a system to just find tech stocks, or blue chips, or U.S. stocks.
Instead, I wanted a system that came out of the underlying data – a purely mathematical system – and would work for any investment I could chart.
So when I finished developing it, I set it up to help me review and rank all of the market’s sectors based on two key metrics.
These two metrics aren’t the only ones my system looks at, but they are the most important. And what they helped me create is my Leaders & Laggards Board.
Simply put, my system helps me identify the strongest sectors in the market at any given time.
And we can make a ton of money when we can identify a hated sector or stock ready to turn and make a run.
That’s exactly what happened in late 2014 and early 2015 to help me create my Cycle 9 Alert service.
As you can see above, my Leaders and Laggards Board from that period had the Consumer Discretionary sector near the bottom in terms of market strength. Investors hated it.
But my system sent a signal that we were on the verge of a major rally in the sector…
My Cycle 9 Alert readers that bought based on this signal could have pocketed 74.4% in just one month.
That’s the power of listening to a proven market signal.
But I also want to tell you…
Why I’ll Never Ignore My System Again
I don’t know a single person who’s never lost on a trade.
I’m not immune to it either, even with my system backing me up.
So I want to tell you about possibly my worst trade decision ever. Not necessarily because of the decision I made, but why I made it.
You see, back in January 2016 I recommended long positions on both the U.S. dollar and the Japanese Yen.
My Cycle 9 Alert system told me it was a great trade setup and I confirmed it.
But three days after I opened the trade, the Bank of Japan announced negative interest rates.
The Yen fell sharply overnight and so did our investment.
I panicked. There’s no other way to say it. And I recommended we close the trade to minimize the damage.
Boy was I wrong!
The Yen bounced back and then some… and the trade we closed for a loss would have ended up returning a profit of more than 200% in a matter of months!
Over a year later, I’m still kicking myself over that trade.
Now granted my system still produced the opportunity for gains of 111%, 93%, 114%, 106%, 80%, 116% and 336% among others in 2016…
But I still absolutely hate leaving money on the table.
And that’s why I’ll never forget that valuable lesson…
ALWAYS trust the system.
After all, I designed it to help people avoid these kinds of mistakes… to not panic and make emotional decisions… and to not react to the news and what we think might happen.
I’ve learned my lesson and put my full faith behind the Cycle 9 Alert system I developed, even when I have some doubts.
And over the past few years, many of myreaders have put their faith in it too – and have been richly rewarded for it.
— Adam O’Dell