Editor’s Note: Today, we’re sharing an insight from colleague and master trader Jeff Clark. As Jeff shares, it takes a certain mindset to be a successful options trader. But Jeff believes—if we can master our emotions—the next few months could be very profitable for traders. Jeff’s advice for mastering the options market? Imagine you’re on a game show… And if you enjoy Jeff’s research, we encourage you to join him on November 2 at 8 p.m. ET. On that night, Jeff will reveal what he’s calling a market “snap.” Many investors will be caught unaware. But for those who prepare, he believes it represents a “rapid-fire barrage of profit opportunities.” Learn more right here. Imagine the Stock Market is a Game show By Jeff Clark, Editor, Jeff Clark Trader It was back in March… and I really liked the trading setup on PayPal Holdings (PYPL). The stock had recently collapsed with the broader market. But as I shared at the time, PYPL was due for a snapback. The stock was trading well below its moving averages and was showing signs of a resurgence. I recommended my subscribers place a short-term trade on PYPL on March 15. And we didn’t have to wait long… Just two days later, we closed out the trade for a 130% return. That’s not too shabby. But here’s the thing. The stock continued to climb over the next week. Had we held on a little longer, the return on the trade would have been even better. Whenever this happens, I usually see readers write in asking why we didn’t hold on a bit longer to get more “juice” out of the trade. And I always answer the same way. Recommended Link | Musk Says Tesla’s Future Is This… Elon Musk calls this the key to “Tesla’s future.” And no, it’s not a new electric car. It’s a giant factory called a “Gigafactory.” Musk spent over ten billion dollars building multiple Gigafactories around the world. All to profit from an emerging trend Forbes reports will be worth over $130 trillion dollars. But after visiting the Gigafactory in Austin, Texas… Former Goldman Sachs executive Dr. Nomi Prins says the real story is NOT these huge factories. Because she’s discovered five billionaires are betting against Elon Musk… By backing a tiny $4 company that’s set to dominate this $130 trillion dollar trend. And she’s put together a short, 30-second demonstration to show you why. |
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Let’s Make a Deal Imagine you're a contestant on the game show Let's Make a Deal. Monty Hall pulls you out of the audience. He waves $2,000 in your face and says, “This is your money. You can take it and keep it right now, or you can trade it for what's behind the curtain.” Of course, you know from a lifetime of watching daytime television that there's a 50% chance that what's behind the curtain is an all-expenses-paid trip to Mazatlán – valued at $5,000 – and a 50% chance that it's something virtually worthless, like a farm animal. What do you do? If it's me… I'm taking the cash. I'm thinking, “I came here with nothing. There's a 100% chance I'll leave here better off if I take the money. There's only a 50% chance I'll leave here happy if I take what's behind the curtain. New Battery Tech to “Eat Lithium’s Lunch”? Either way… my life isn't going to change dramatically. So, I'll take the $2,000 and be happy no matter what.” Here's another line of thought… “I came here with nothing. The worst case is I'll leave here with nothing. But there's a 50% chance to increase the return on my prize by 150%. The odds justify that trade. So, I'll pick what's behind the curtain.” Here's the thing… there's nothing wrong with either decision. All that matters is how you view the consequences of the trade. I’ll Take Happy I'm going to be happy if I get a $2,000 profit. I might be slightly more ecstatic if I win a trip valued at $5,000. But I'll feel like an idiot if I give up the $2,000 and go home with a goat. So, I'll pass on “ecstatic.” I'll take “happy.” Not everyone thinks that way – which is why we love watching game shows. Let's apply this thought process to the stock market… Every time I close a trade, in the back of my mind, a little voice asks, “What happens if it moves even higher?” This is the equivalent of Monty Hall asking if I want to keep the $2,000 or trade it for what's behind the curtain. I know for sure that I'm happy if I close the trade right now. I don't know if I'll be happier or feel like an idiot later. So, I almost always choose to err on the side of happiness. Market Wizard Reveals: The One Ticker Retirement Plan Now… if this is your only time on a game show… if it's your only chance to make a trade in front of Monty Hall, it's understandable if you choose what's behind the curtain. After all, it's your only shot to maximize your gains. I get it. But the stock market isn't a game show. We have trading opportunities almost every single day. The secret to longevity as a trader is to consistently take the money when it's flashed in front of you. You might feel a tinge of disappointment if a trip to Mazatlán is behind the curtain. But you're still heading home with more money than you had before. Be happy. At least you're not going home with a goat. And if we can accept this mindset, then I believe 2022 could be very profitable for us as traders. Recommended Link | 4X Better than the S&P Since this stock went public… It’s delivered 4X the gains of the S&P 500. And one small-town millionaire believes it could still double from here. It’s all thanks to a secret he discovered in this list of the 500 fastest-growing companies in North America. The companies on this list are growing at an insane pace. 212%...500%...1,000%... 10,000%... The biggest is, well, I won’t ruin the surprise… you’ll have to watch his interview to find out. But it’s because these companies generate so much wealth… so fast… that it’s possible for you to collect substantial wealth from them every single month with just this one ticker. |
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A Looming Market “Snap” Here’s what I want to put on your radar now… There’s a $4 trillion event right around the corner that could cause dozens of popular stocks to freefall overnight, causing a market “snap.” The result? A rapid-fire barrage of profit opportunities on some of the biggest stocks in the market. In my entire 40-year career in the markets, I’ve seen this kind of setup only a few times before. Unfortunately, because most folks are glued to the television watching the financial talking heads, they’ll miss it. Failure to prepare for this snap could be devastating, especially if you’re a buy and hold investor. So for folks managing their own money, this may be the most important event you need to pay attention to right now… Make sure to attend my special briefing on November 2, at 8 p.m. ET so that you’re prepared to fall on the right side of this market “snap.” This could be your chance to recoup your losses this year, and potentially reap decades’ worth of gains. Click here to reserve spot now. Best regards and good trading, Jeff Clark Editor, Jeff Clark Trader Like what you’re reading? Send your thoughts to feedback@brownstoneresearch.com. |