One thing I’ve learned in my quarter century of investing is that Wall Street loves its axioms:
“Buy low, sell high.”
“Sell in May and go away.”
“Buy when there’s blood in the streets, sell to the sound of trumpets.”
And my personal favorite:
“The trend is your friend.”
That’s because trend following is one of the most lucrative trading strategies around. It’s been around for centuries and withstood the test of time.
Stocks tend to follow a simple Newtonian law: Things in motion stay in motion.
I consider myself a trend follower. The most important piece of my analysis focuses on whether prices are going up or down.
Buy stocks that are on the way up. Sell stocks that are on the way down.
With trend following your downside is limited, and your upside is unlimited.
If the stock deviates from the trend, you sell. If the stock is still in the trend, you hold on to it.
Trend following works because it becomes a self-fulfilling prophecy.
When a stock is moving up, it creates buzz. It’s talked about on the financial news, and journalists report on the story.
This buzz brings in more buyers looking to profit off the uptrending stock. The price keeps going up, and trend followers don’t sell as the stock continues in an uptrend.
That’s what makes trend following one of the most powerful strategies in investing.
And this week, my colleague Brian Christopher unveiled a new way to follow trends — using options to offer unlimited upside with limited downside.
The new system is called Flow Matrix Alert.
I want to explain why this strategy might be right for you.
The Best of Both Worlds
Flow Matrix Alert has two components:
- Stocks that are rising.
- Beaten-down stocks that are ready to rise.
Think of this like the best of both worlds.
You invest in the stocks in an uptrend and also stocks ready to start a new uptrend.
You buy stock options on stocks that are trending higher. Because they’re trending, they’re likely to keep going higher in price.
Brian looks at the strongest market sectors and then chooses the stocks that are showing the strongest momentum.
This process of super-selection produces the strongest available stocks and provides a higher probability of winning options trades.
It cuts out the stocks that could move and focuses only on the stocks that are moving.
The other part, the beaten-down stocks, typically has cheaper options available because no one wants them. He buys these cheap options before a new uptrend starts.
It doesn’t matter what industry these stocks are in. Brian simply follows his proprietary indicators to pinpoint the next massive uptrend.
And the results have been exceptional.
Flow Matrix Really Works
Flow Matrix Alert helped investors pocket 70% gains on Inovio Pharmaceuticals Inc. in less than a month.
During the extensive beta testing of this new system, Brian showed readers how to earn peak gains of 254% on Howard Hughes Corp. — in 16 days.
They had the chance to make 200% on retailer J.Jill … and 105% on tech firm F5 Networks … both in just six days.
One of his most impressive wins was with cloud computing firm Cloudera. That trade took a little longer to play out — 75 days — but it was well worth the wait.
Brian closed that trade during the last Total Wealth Symposium event … landing a whopping 767% on that one recommendation.
As you can see, the trend is always your friend.
And Brian’s Flow Matrix Alert will help you find those trends and capitalize on them.
To watch his brand-new presentation, simply click on the image below:
Editor, Automatic Fortunes