Even Most Pros Lose the Investing Game, But You Don’t Have To

Who doesn’t love a good game?

You may even have played a few at your July Fourth holiday gatherings.

My favorite game to watch is hockey. My favorite game to play is chess.

I’m a numbers guy… and a strategy guy. And I love the idea that there’s so many different moves in chess that it’s too large to even calculate an exact number – though I’ve tried.

They’re fun. They’re funny. And they get our innate competitive juices flowing.

They can help us make money, too.

Believe it or not, games date back about 7,000 years – or at least that’s the oldest archaeological remains we have. It’s believed that Mancala is among the oldest games in the world, dating as far back as 6000 BCE in Jordan. That was a favorite of mine as a kid.

Source: Flickr

Beyond enjoyment, games make learning easier and more fun. According to research, using games in the classroom can help increase participation, foster social and emotional learning, and motivate students to take risks. Multiple choice games have also been found to improve attitudes towards learning and boosted academic scores.

Some popular games reportedly help teach important math skills: Go Fish improves memory, Battleship teaches spatial awareness, Uno teaches counting, and Monopoly teaches arithmetic – and turns us into ruthless capitalists.

Games can help people better understand hard things. Like making money in stocks.

Odds Are Against Most Investors

If investing were a game, it would be an incredibly difficult one. If it were easy, everyone would succeed.

In fact, most people don’t… including the “pros.” It is nearly statistically as probable – or I should say improbable – as winning the lottery.

S&P Global (of the S&P 500) published a scorecard on professional money managers and how they did relative to their respective benchmark indexes. Here’s what they found:

  • After one year, nearly 73% of active fund managers underperformed their indexes (across 22 equity categories).
  • After five years, 95.5% of active stock fund managers underperformed their indexes.
  • After 15 years, there were “no categories in which the majority of active managers outperformed” across domestic and international equities.

Ouch!

If professionals fail the majority of the time, how the heck does anyone succeed?

It may be rare, but it’s possible. And I figured out how.

It took me a long time, but eventually I figured out how to beat the market. And not just for a year or three, but data shows that my method beat the market consistently since 1990.

And not just beat it, but trounced it. In fact, one model strategy outperformed the S&P 500 by 7-to-1.

I beat the very index that the creators themselves said is impossible to beat over 15 years.

So how did I do it?

I Gamified It

Yes, I turned something as difficult as investing into a game.

I turned it into a puzzle and developed a way to predictably solve it over and over again. To consistently pick the best performing stocks out there.

And the best part? I boiled it down to one simple number – the Quantum Score.

No more guessing, hoping, and ultimately disappointment in losing your hard-earned money.

Here are the rules to succeeding at this game:

  1. Find the highest-quality businesses whose fundamentals line up, like Dominos. Invest in companies that are growing, have low debt, consistently beat sales and earnings forecasts, and more.
  2. Avoid the Old Maid. You want stocks that are trending higher, not stuck in the mud. Look for price spikes, trading highs, volume, and solid institutional support.
  3. Focus on the companies being bought by the Big Money that moves stocks. Like Monopoly, you’ll want to pay attention to who owns what and where that money is flowing.
  4. Your odds of winning go way up when you find a stock with a Quantum Score between 70 and 85. This is the optimal buy zone.

I took these rules of the game and created a system to find those monster stocks with the highest probability of making good money. The ones with superior fundamentals, strong technicals, and Big Money flowing in.

That’s not easy with roughly 6,000 stocks to analyze, so I automated the data retrieval and analysis to rank those thousands of stocks every single day. My Quantum Edge system ultimately boiling it down to that one simple number: The Quantum Score.

Winning the Stock Game

Once the game is set up, it actually gets pretty simple: Follow the rules above to buy stocks with Quantum Scores between 70 and 85. Manage the portfolio accordingly. Rinse and repeat.

That is what my Quantum Edge system is all about.

Here’s a great example from one of my Quantum Edge Pro recommendations. Check out the nearly perfect Quantum Score, along with superior fundamentals and technicals. And it just hit all-time highs this week!

Source: TradeSmith Finance

When I turned stock investing into a winnable game, I flipped the odds in my – and your – favor. If you win more than lose with bigger wins than losses, that’s a game you can play forever. And a path to building wealth.

I play it every day because I win, because it’s fun to win, and because I make money.

And now it’s a game you can play, too.

By becoming a Quantum Edge Pro subscriber, you gain immediate access to my Quantum Score tool right on TradeSmith Finance. With just a click of a button, you can score thousands of stocks to find those winners. Plus, you’ll receive my handpicked stock recommendations backed by this powerful system.

Let’s play!

Talk soon,

Jason Bodner
Editor, Jason Bodner’s Power Trends