This week, I want to tell you the story behind the most powerful investing strategy we've ever seen...
Those who are familiar with this incredible investment system may already know how it works, but few people actually know we practically stumbled on it by accident.
If you know your history, then you know that so-called "accidents" have led to many breakthroughs.
For example, Alexander Fleming stumbled upon penicillin when he found mold-killing bacteria in one of his Petri dishes. John Hyatt accidentally invented plastics while coming up with a replacement for ivory in billiard balls in 1862.
Fast-forward to today, and you'll find that innovative companies like Google understand this all too well.
Google's engineers spend up to 20% of their time working on their own pet projects. And some of the company's biggest successes -- including Gmail -- have come as a direct result of this policy.
They call it "blue-sky" research. Truly innovative companies must provide their employees with this kind of workplace. They have to give their employees the time and freedom to work on projects even if the benefits aren't immediately clear.
I could go on and on with other examples, but the point is when you let smart people work on big ideas that they care about, good things happen... often in unexpected ways.
The Greatest Discovery We've Ever Made
Here at StreetAuthority, our Maximum Profit system was discovered in a similar way. The idea was to gather as many diverse minds as possible who were interested in using the market to make money, and give them the freedom to see what they would come up with.
What we discovered is a system that we think could make you even more money in the stock market than anything we've ever created before.
In short: it solves one of the most common problems every investor faces -- how to get bigger gains in a shorter amount of time.
I have to admit, I was a little skeptical when we first began the project. When we were given the task of creating an investing system that could deliver bigger gains in a shorter amount of time, my first thought was "this sounds an awful lot like trading."
You see, most people -- including myself at the time -- immediately equate trading with moving in and out of stocks in a matter of hours or days, racking up huge commissions and ignoring fundamentals. And in my experience, the vast majority of investors should NOT be doing this sort of "trading." It's a great way to lose your shirt.
And before I go any further, let me tell you what we ended up with has nothing to do with options, short-selling or anything complicated. The truth is a trading system can be as complicated or as simple as you want. And in my experience, simple is better.
So our team got to work and dug through academic journals... SEC filings... government data...
We hired a Chartered Market Technician -- one of only a few hundred in the world. He back tested our top trading strategies using market data from the past few decades. We wanted to make sure the strategy could work during bear markets, wars, inflation, deflation, bubbles, even a currency crisis. Everything.
If a particular strategy hadn't outperformed the market for at least 30 years, then we didn't bother with it.
We even brought in an accountant to get his perspective on which financial metrics actually matter... And what we found is something you'll rarely hear the mainstream media highlight in their coverage of companies.
All said and done, we discovered what we call the Maximum Profit system.
It's an elegant, yet simple system. We use two of the most reliable indicators in the investing universe -- one fundamental, one technical -- to identify when a stock is giving an important "tell" about its next move.
The result: bigger returns in a fraction of the time.
Not only that, but by using this simple market "Tell," you can survive market crashes relatively unscathed. In the 2008 financial crisis, for example, we found that this market "Tell" would have gotten you out five months before. And it would have gotten you back in just four days after the bottom.
What makes our system so different is that it's designed to give investors a simple set of rules with clear buy and sell signals.
That's what we call "The Tell."
The reason for this is clear. In baseball, when a pitcher sometimes inadvertently shows his grip on the ball before putting it in his glove for the next pitch, a seasoned batter can know exactly what kind of pitch is coming beforehand. And when a good hitter knows what pitch is coming, the chances of him knocking it out of the park for a home run are much, much higher.
The same principle is at work with the Maximum Profit system.
Now having said that, a system is worth nothing without rules -- and an investor who diligently follows them.
Think about it...
If a hitter is undisciplined and just swings away at any kind of pitch, he's not going to get very good results. But when you wait for the right moment and know what kind of pitch is coming, well, let's just say you have a major advantage over everyone else.
That's why having a set of rules -- whether you're trading or investing -- is paramount. As my colleague Jimmy Butts likes to say, rules take the emotion of out of investing. They provide discipline.
However, as exciting as "The Tell" is, the Maximum Profit system is not for everyone.
This isn't a crystal ball.
You'd be surprised by how many people learn about the system's results and expect the same kinds of gains without following this system to the letter.
But when you do follow along, here's an idea of what is possible...
Since we went live with the Maximum Profit system, the average holding period for a trade has been just over four months. Most people who claim to invest for the long-term have an average holding period of less than that.
And our results have been amazing.
We've been using "The Tell" to hit home runs for the past three years. We're talking about gains of 181% with Lannett... 90% with Electronic Arts... 72% with Alcoa... 135% with Westmoreland Coal... 242% with Bitauto Holdings, and countless others.
We usually find about 25 stocks that give away this "tell" each year. Right now, the Maximum Profit portfolio has 30 stocks. Of those 30, 27 are winners right now. Some have only recently started to take off, showing gains of 5% to 8%, while others are up 42% to 71% (all in less than 12 months) and still rising.
There's a lot more to say about Maximum Profit and how "The Tell" can lead to triple-digit gains in a matter of months, but I simply don't have the space for it in today's issue. (For more, check out this report.)
But I'll leave you with this...
There's a reason the Maximum Profit system is the best-performing systems-based service in StreetAuthority's 16-year history. At the end of the day, it's all because of "The Tell" signal that we're going to be discussing more in the coming weeks.
Bottom line, investors who find a proven strategy and stick to it with rigorous discipline stand a much better chance for booking huge gains than those that don't. So if you'd like to learn more about "The Tell" right now and how to put the Maximum Profit system to work for you, go here.
This article originally appeared on StreetAuthority.