Most investors approach the market with a simple game plan: Buy low and sell high.

Not a bad way to make your bones at all.

In fact, the “value” investment strategy — buying undervalued stocks relative to a company’s industry or the broad market — is based on this idea.

But thanks to record-low interest rates and weak economic growth over much of the last decade, value stocks have underperformed the market.

At the same time, growth stocks — the issues priced at a premium to the market — have soared.

In fact, as valuations climb, many financial talking heads are telling investors to stay out of the market and wait for a crash to buy up stocks.

That’s a perfectly good way to miss out on a rally in stocks — one that could last a lot longer than people think.

There’s better way to play the action: Flip the script.

Make Friends With the Trend

Believe it or not, the stock market behaves very much like the real, “physical” world.

For instance, Sir Isaac Newton’s first law of physics most certainly applies to stocks: An object at rest will remain at rest unless acted on by an unbalanced force.

Let me explain…

Stocks have a tendency to continue moving in the direction they have been travelling. This is especially true over one-year periods. And the “gravitational” phenomenon applies to both stocks in uptrends and downtrends.

And as stocks approach new highs and lows, this phenomenon becomes even more pronounced.

What’s behind the gravity of market trends?

It’s simple, really…

Human investors are emotional beings and have difficulty in objectively valuing stocks at highs or lows, both on near-term and long-term bases.

New information about a stock at either level is slow to be digested by the market, and that delay causes its price to dislocate from its underlying fundamentals.

Simple enough, right?

Well, here’s how you could trade the action…