Warren Buffet once famously said, “Only when the tide goes out do you discover who's been swimming naked.”
People interpret this a few different ways.
One of them involves retail traders getting in on trades in a bull market with almost zero knowledge, data, or research behind them. Everything’s going up, so who cares, right?
Then, when the market corrects, we see which companies are actually doing well vs. the ones that are simply flying up in price because people are buying it. The latter are the “naked” companies Buffet mentioned.
And we say RIP to many of those traders’ initial investments. They swam with that tide and lost.
However, swimming with this tide can actually work in your favor…
If you get into the water early on.
What do I mean?
See, retail traders rarely move the markets (except for in thin markets).
I’m well aware of this year’s “GameStop Rebellion,” but it’s still average Joes vs. giant institutions full of people with degrees and years of experience in this stuff…
Not to mention massive amounts of capital.
Occasionally, retail traders win. But in most cases, the institutions — the “Smart Money” — basically determine where prices are gonna go with all that capital.
The retail traders who pile onto trends later on might build the power of that tide…
But ultimately, they’re riding a huge tsunami started by someone else.
So Buffet is right in this interpretation. In many cases, you don’t want to jump into a big-time trend because the Smart Money will yank the carpet right out from under you when you least expect it.
Then, you might be left holding a bunch of stocks (or whatever you invest in) that aren’t worth what you thought they were.
But if you can identify when and where the big guys are getting into these trades — where the giant wave is starting — you could get in right alongside them…
And potentially get out with some nice gains.
That’s exactly what my Statistical Disruptive Flow method does.
With just 3 criteria, I can spot these massive moves building before they’ve crashed upon the shores of the markets.
And I’ve seen gains in the 100%, 400%, and even 900%+ ranges by doing so.
I built my Profit Flow Group alert service around Statistical Disruptive Flow — but you don’t have to understand the intricacies of my system at all. I do that part…
You just place the trades when you get the alerts and ride the wave of the Smart Money.