Editor's note: To succeed in this market, you must wait for the right opportunity to strike...

With out-of-control inflation throwing stocks into disarray, investors have been hiding their money on the sidelines to escape this heightened volatility. And while some stubborn investors have refused to flee the market, Enrique Abeyta – an editor at our corporate affiliate Empire Financial Research – believes they could be at risk of ruining their portfolios. According to Enrique, one wrong investment could lead to catastrophic losses...

That's why he says it's critical for investors to be patient in their decision-making as volatility continues to fill up the market.

In today's Masters Series, originally from the October 13 issue of Empire Financial Daily, Enrique reveals his strategy for identifying the most profitable investment opportunities... explains how he has adjusted his game plan amid today's bear market... and details why having patience is key in order to survive this ongoing chaos...

Finding the 'Rubber Balls' in the Stock Market

By Enrique Abeyta, editor, Empire Financial Research

In my Empire Elite Trader service, our main focus is identifying deeply "oversold" situations in high-quality stocks...

At times, stocks sell off so badly that we can begin to have confidence that the selling is likely to cool off relatively soon.

We're able to have that confidence because certain technical indicators give us readings on the statistical significance of the selling relative to whatever has happened in the past.

As long as a company isn't going bankrupt, think of the high-quality stocks we recommend as balls falling to the ground: In theory, the faster they fall, the higher they will bounce back.

We say "in theory" because this isn't physics we're dealing with – but the analogy still holds.

It's easy to identify the balls that are falling fast, but not all of them will bounce high. Rubber balls, for example, will bounce a lot... steel balls, not so much.

Our focus is on identifying the rubber balls – stocks that will bounce the furthest...

We do that through our fundamental analysis of the companies and understanding the drivers of the stock, especially what the shareholders are most focused on...

Using this method, we try to find "rubber balls" where you can make a nice amount of money in a relatively short time.

At the risk of mixing too many analogies, there are times when a lot of balls are falling from the sky and times when there aren't many at all...

During a bull market, you don't see a lot of balls drop that fast.

The lack of opportunities actually improves the quality of the ones available. Because in a bull market, everything goes up! No matter if you were right or wrong about a stock's underlying company, as long as the overall stock market is going up a lot, the stock will likely bounce back.

But as we all know, we are not in that kind of market right now.

Instead, we're in a bear market, where there are tons of balls falling and often very fast.

Instead of presenting more opportunities, this actually presents more risks. And opposite from bull markets, you can still lose a lot of money even if you're right about a stock's underlying company.

But there's a quirk to these kinds of markets...

Since almost all stocks are falling fast, you get many companies that you would never see fall this fast in almost any other type of stock market environment. They also fall faster than what you might see at any other time.

What this means for our strategy is that it's important to be more patient.

Wait until the opportunities are the most extreme for the very best companies. Then, it's time to pick up the bat and take a swing.

Regards,

Enrique Abeyta

Editor's note: Identifying the right time to strike is easier when you have access to the best information available. And Enrique has helped his Empire Elite Trader readers book an 87% success rate with his unique "quick cash" system that pulls data ahead of the general public...

It's a must-see in today's bear market. That's why he recently held a presentation to discuss the ins and outs of this powerful new system. Get the full details here...