We like to think we invest and make decisions based on being rational, unbiased and making money.
But in real time that’s not how we behave.
Extensive research over the past few decades shows that investors make decisions that are irrational, biased and unpredictable.
It’s called behavioral economics.
Behavioral economics combines psychology and economics to understand how and why people behave the way they do.
This field of study is being taken very seriously.
In fact, Daniel Kahneman received the Nobel Prize in Economics in 2002 for his work on behavioral economics. Richard Thaler, another behavioral economist, also received the Nobel Prize in 2017.
Kahneman shares all the research in his book Thinking, Fast and Slow — which I highly recommend.
I read countless books and studies as I was building my new system — the Profit Accelerator. It takes advantage of what behavioral economists call the “disposition effect.”
Don’t Cut the Flowers!
The disposition effect is when investors sell their winners and hang on to their losers.
Legendary investor Peter Lynch framed it like “cutting the flowers and watering the weeds.”
Investors sell their winning trades in order to book a profit, which gives them a great feeling.
Here’s an example…
This is from DryShips. The stock goes up 134%. Most people think it’s as high as it can go, right?
People look at that gain and say I doubled my money. Now is the time to take profits.
So what do they do instead of letting it grow? They cut the flowers! They sell.
They are pessimistic in the face of strong, short-term performance.
But my new system — Profit Accelerator — doesn’t have feelings. It doesn’t have emotions. And that means it doesn’t have the urge to sell a stock too soon.
Here’s how DryShips would have performed by using the Profit Accelerator:
The system saw that there was more to gain.
Here’s another — my favorite example!
This is from Sea Limited. It goes up 132%. Investors cut the flowers and sold.
But they were leaving money on the table! Here’s what the stock went on to do…
The Profit Accelerator identifies stocks that are moving higher, and still have more to go … but investors are selling them in order to lock in a profit.
By doing so they are leaving huge amounts of money on the table.
And I’m showing you how to pick up that money.
Profit Accelerator Outperforms Since Inception
Since we started Profit Accelerator, more than one month ago, our system is doing better than expected.
Every one of the stocks in the portfolio are outperforming the S&P 500.
Profit Accelerator is up more than 4X the market!
Although the period we are looking at is short, it’s always great to start on the right foot.
Wall Street traders love to claim that they have a “secret.”
It’s largely because they want you to think they’re smarter than you and you could never be successful on your own.
It’s baloney.
If you’re looking for the best investing strategies… We know what works.
There’s a study that goes all the way back to 1927 that proves that the absolute highest returns are from following a momentum strategy.
If you want to boil the strategy down to its most basic premise — it says that stocks that are going up are the most likely to keep going up.
Now, in order to profit from momentum, you need a strategy.
Not just any strategy. A well-tested and proven strategy for ONLY buying the best momentum stocks.
And that’s what I’ve just developed with Profit Accelerator.
In fact, after running it through 20 years of data, backtesting and analysis, I was able to prove this system has the power to grow any investor’s net worth by 3,514%.
You don’t have to take my word for it. Click here to see this in action for yourself.
Regards,
Charles Mizrahi
Founder, Alpha Investor
