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If we had to pick one George Carlin bit as our all-time favorite, it would have to be “A Place For My Stuff” -- it’s a great example of taking one singular idea and examining it from every possible angle.
He is so zoned in to “stuff” that -- intentionally or unintentionally -- he actually starts to think like an economist.
Why? Because economics is the study of the production, distribution, and consumption of “stuff.”
It’s a well-known strategy in cycling to win races.
Cyclists ride in a peloton formation to conserve energy by drafting behind lead riders.
The cyclists take turns being in the front and spending most of the energy. But for the riders behind the leaders, the resulting decrease in air resistance -- drag -- is incredible.
Have you ever wondered why the majority of Google’s products are free? Or why Facebook doesn’t charge you for a monthly subscription?
It’s simple: YOU are the product...
And your data is the valuable resource they’re after.
I’m sure you’re well aware, gold has been on a tear and has broken above $1,800 per ounce.
Every goldbug on the planet is excited and salivating at the mouth…
Except for a group of bankers who accidentally got caught up in the greatest modern-day gold racket. For them, their gold bars aren’t worth $1,800 per ounce, but more like $2.75 per pound.
Despite dismal earnings reports and anticipated GDP contraction of anywhere from 5 to 30 per cent (depending on who you believe), the stock market is on track to regain all that it has lost since March’s Coronavirus swoon, and continue back on its record run higher.
How is this possible?
For the first time since November 9, 2011, front month gold futures traded hands above $1,800 per ounce. It’s now knocking on the door of a major technical resistance level.
Naturally, this has every goldbug and self-proclaimed expert on YouTube shouting from the rooftops.
We’re no longer surprised by how misunderstood gold is in the historical monetary context.
Detractors like to point out its uselessness as a fungible unit of trade (you can’t buy a loaf of bread with a bar of gold) while wizened investors maintain a 10%-15% allocation to gold in the event of a systemic failure in monetary currencies.
The U.S. Federal Reserve and central banks around the world appear to have the printing presses going full tilt these days.
This has fueled the greatest “V recovery” any buy the dip investor could have asked for.
Tech stocks and precious metals stocks alike have been among the best performers and outperformers YTD.
Trying to predict price movements in the market has become a fool’s errand in this pandemic.
The primary cause of that is the explosion in liquidity that has occurred as a result of the Quantitative Easing reflex response of central bankers.
Lest we forget: understanding that for every dollar Quantitatively Eased into existence, at least 10 more are generated through the ephemeral magic of fractional banking.
Watching the cycle of protests in the United States has been difficult for all of us.
Whether you are in the street marching, at home social distancing, or trying to rebuild a life somewhere in the middle, we can all agree that the United States right now is a country in transition.
There’s not a whole lot of news coming through on the various Financial TV networks that we don’t see first somewhere else… usually on Twitter or on the Bloomberg Terminal.
That said, we usually have them on in the background when we’re sitting down at our desks in the morning, as they’re a decent gauge of daily sentiment, and occasionally have a moment where they lead some solid interviews that grab our attention.
Moments like… well, this.
The U.S. is currently sitting at all-time high storage levels as reopening continues to progress slowly and refiners continue to dump jet fuel (for which demand is still down roughly 80%) into their diesel cuts.
The release of EIA data showed total diesel inventories sitting at around 176 million barrels, more than 13% above historical norms for this time of year, and matching the all-time highs set in August 2010.
Diesel is primarily consumed by the transport sector – think trains, trucks, barges, and boats – which are of course used to ship products to consumers.
And while retail traffic is recovering as reopening progresses, there is still clearly a long way to go.
The Central Bank created cash around the world and has propped up major stock markets and indices like the NASDAQ, DJIA, and S&P 500.
This creates a stark distinction between a “V recovery” in the stock market and the harsh reality of the real economy.
Double-digit unemployment rates, negative GDP across the globe, interest rates near, at, or below zero…
None of the economic indicators point to the underlying economy being healthy, and here’s why...
If there’s one lesson that investors need to internalize, it’s that past performance is no guarantee of future returns… that is to say, history doesn’t repeat itself. But as many have pointed out over the years, it does often rhyme.
For instance, no two bear markets are the same, but they always follow bull markets… and vice versa.
Similarly, government response to each of those instances is never identical… but there is always a response.
We’ve been writing for a few weeks now about the genuine changes in consumer behavior that are taking place around the world as governments respond to the pandemic.
Basically, the thesis has been that because of massive layoffs and increased remote working, consumers are spending far less than they ever have been during this last bull market.
And presumably, they’re stockpiling cash – whether it be boosted unemployment compensation, stimulus checks or salary -- in case another outbreak/lockdown happens in the future.
Bernard Baruch was one of the wealthiest speculators in American history.
He started with nothing and worked his way up to becoming a war effort hero and a trusted advisor to many presidents during his lifetime. But he made his fortune speculating.
Today’s missive is about the biggest bet that Bernard Baruch ever made. But not only did the U.S. government take it from him, they tormented him for doing it.
We don’t think we’ve ever received as many emails in one day as we did when oil prices went negative last month.
We’re still catching up with all those folks, which is frankly a welcome task during our continued isolation.
By far, the most common question we received was “so, I should buy an oil ETF now and just hold it for a few years, right?”
Years ago, a smart guy told us that if we want to explain financial concepts to people, we should use house analogies.
A house is a tangible asset. You can see it and touch it. And most people can identify with buying or selling a house…or at least paying rent.
We’re glad this is the case, because a simple house story can teach you a strategy that can make you hundreds of thousands – even millions – of dollars in the natural resource business.
President Trump recently tweeted: “As long as other countries are receiving the benefit of Negative Rates, the USA should also accept the ‘GIFT’. Big numbers!”
Considering the President is a real estate marketing guru facing a ballooning national debt, it can’t come as a surprise he’d be in favor of Negative Interest Rate Policy (NIRP).
But are they really a gift?
It seems that every week, we get round after round of economic data, and it’s all… well, it’s terrible.
This week is no exception, either, with initial unemployment claims clocking in at nearly 3 million people over the course of the week prior.
While that’s down by almost 50% since the late March peak, it wasn’t a significant decline from the previous week (~6.5%), and it remains more than 10x higher than pre-pandemic levels.
The resource market’s biggest winners come from companies with small market caps. We’re talking about companies with market caps of less than $1 billion.
The resource market’s extreme cyclicality also means the sector regularly produces 200%…500%…and 1,000%-plus winners.
But buying your stake in these potential winners isn’t like buying a stake in a giant company like Microsoft or ExxonMobil.
The last few months have been an interesting time for everyone…
Dealing with a global crisis while running a business and raising a couple of kids feels a lot like being deployed to a combat zone.
The work never ends. There are landmines and sniper shots all around you. Days blend together in a haze of repetition and exhaustion.
We read a great blog on Bloomberg this morning that talked about “fundamentals” versus “technicals.”
For those who might not be aware, “fundamental” metrics attempt to measure the actual value of a stock. For instance, how much revenue a company might generate, or what operating costs will be.
“Technicals” on the other hand, are only concerned with a stock’s price and volume… nothing else.
We’ve recently had a lot of frustration with the experts…
As the pandemic continues to dominate headlines around the world, dozens of ‘experts’ have thrown their ‘expertise’ into the conversation.
Whether they’re from Europe, Asia, or North America, these experts all seem to repeat the same worthless message..
With the price of gold holding steady over $1,700 per ounce, there are more and more reasons to own gold in a place of Treasuries or bonds…
One, gold is not subject to the wild swings in risk and nobody but nobody can print more of it. And two, rampant overproduction of currency (including cryptocurrencies) is probably the single biggest reason to own gold.
The problem is getting your hands on it.
Questions put you one step ahead of everyone else, give you control, and allow you to predict the future.
If you know us, then you know that we use questions as a tool. And so does Andrew Bustamante.
But you have to know the right questions to ask...
The next leg down in the “us-versus-them” mentality of polarized global politicization has us divided into two camps:
Those who think the best way halt the spread of a new virus is to stay home and those who think the best approach is to ignore it.
Both approaches have merit.
Interest in gold and gold stocks has skyrocketed in the last few weeks, and for a good reason…
Gold surged from $1,470 during the peak of the March Meltdown to over $1,750 last week.
Stockbrokers that were all cannabis and blockchain oriented the last few years are now calling their clients about the next “hot” junior gold stock.
“Get in now before the exploration this spring and summer.”
But our red flags are going up, and here’s why…
We compiled a list of 23 rules that are an absolute must if you want to make it as a trader.
Let’s face it, the market likes it rough.
Don’t stare at the market from across the room and wait for it to make a move. Look the market in the eye. Get up out of your seat, go over there and say, “I’d like euro to come home with me.”
Yes, we said euro.
And that’s just rule No. 1…
“Stay home.”
That’s the mantra from Prime Minister Justin Trudeau, President Donald Trump, Prime Minister Boris Johnson, and the full gamut of world “leaders” who think that the world should do as they say, not as they do.
But who can possibly stay home?
We keep seeing this quote from the movie ‘Jaws’ pop up frequently in financial circles this year.
We’ve read it in articles, chuckled at Twitter gifs, and we’re even starting to see it on mainstream social media networks.
It makes some sense, too.
The analogy perfectly describes the Federal Reserve’s $2 trillion reaction to the recent market turndown. It’s certainly appropriate for the “helicopter money” that Congress just authorized…
There’s no denying that the current crisis has accomplished in three months what a lifetime of Extinction Rebellion and Greenpeace protests have not…
Global emissions reductions are substantially down since the pandemic has curbed air and sea travel by 90%.
The health crisis is nothing more or less than Earth’s own immune system waking up and going to war against the human virus that is undermining all of its natural systems.
The ratio of human beings to the rest of Earth’s flora and fauna is woefully disproportionate, when one considers the average ratio of non-human in nature relative to one another.
In many respects, that is a good thing...
In the past few weeks, stocks have lost about a third of their value…
And while the Dow Jones logged its biggest single-day gain since 1933 last week thanks to the stimulus package, many analysts and investors say the worst is yet to come.
And if they’re right, that means stocks have roughly another 20% downside from current levels.
But that doesn’t mean you have to be along for the ride.
This pandemic is the most contagious outbreak we’ve ever seen.
It is ravaging health care systems and economies around the globe, and we are very likely only in the beginning stages.
The World Health Organization has warned that without a new vaccine, up to 60% of the planet’s population could be infected by coronavirus.
And with its current fatality rate, that could mean over 100 million deaths...
So, the race to find a cure is on. And while your physical health is paramount in this time of crisis, there is no reason to neglect your financial health.
Every time there is an outbreak of a new disease, certain companies see their stocks explode.
If you’re like us, you’ve had your fill of crisis status updates and next-best-guess news reporting.
We’re a fan of reason, not reaction. And so is Andrew Bustamante. He’s dedicated EverydaySpy to being a voice of facts since the beginning of the outbreak.
His mission remains the same -- teach everyday people elite CIA solutions to beat this pandemic. Social media scavengers and clueless pundits will keep recycling bad info.
Because that is their business model… but he’s on a mission to share solutions.
We wanted to take a moment to talk about the current situation we find ourselves in…
The markets are falling. You’re hearing a lot about the “r” word (recession} or even the “d” word…
We’re not supposed to go anywhere. We’re fearing an invisible threat. And through it all we’re watching our money drip away…
Have we made it sound bad enough yet?
There’s no denying that things stink right now (we’re not going to pretend that they don’t), but there’s still hope…
It’s been a dizzying few weeks for traders as we went from the longest bull market in history into the fastest bear market in history….
After an 11-year bull run, it took just three weeks for the S&P 500 to enter bear market territory.
As the coronavirus has spread rapidly throughout the globe, economists have slashed growth estimates, with a number predicting the U.S. economy will contract in the second quarter.
There’s plenty to be worried about right now… but even more opportunity.
One trader is using skills the CIA taught him everyday to win business, influence and stay safe…
And survive…
Every spy skill is useful, even though you might use some more than others. But sometimes it’s the skills you use the least that have the greatest impact.
That’s a great mindset to have in today’s volatile market, and here’s why…
It’s time like these when many investors want to head for the hills. And who can blame them?
In less than a month, more than $9 trillion in value was erased from the global markets. It happened as swiftly as the coronavirus appears to be spreading across the globe.
We’ve gone from all-time highs into a bear market at record speed.
Today we want to share with you how we’re trading this market… the type of stocks we expect to rebound the fastest… and how to potentially protect your portfolio in the meantime.
Gold surged higher last week as the U.S. Federal Reserve once again had to step up the rate of capital and credit fabrication from thin air that we have been trained to call “stimulus”…
Which is really just another count of fraud against future generations.
This time, it’s a $100 billion injection into the overnight repo market, where funds and banks can’t manage a checkbook to save their lives and are bailed out every night.
You’re probably indifferent to it: there’s nothing you can do about it, and it doesn’t perceptibly affect you in any meaningful way, so who cares?
Gold investors, apparently…
After the strongest bull run in the history of the markets, it took just six trading sessions for stocks to move from all-time highs into correction territory.
As the coronavirus began to pop up across the globe with the number of cases spiking and death toll steadily rising, stocks quickly reversed course and went screaming lower.
Now that stocks have swung from being overbought to oversold, we’re sure there are some brave souls out there who are itching to go long.
But there might be a better way to take advantage of current market conditions with less risk…
There is one stock on the verge of becoming a “Dividend Aristocrat”.
You know, the elite group of stocks that have raised their dividend at least 25 years in a row and beat the overall market by more than 2-1 over the long-term.
Holding one of these stocks is perhaps the most powerful and greatest thing you can do to potentially guarantee income in the stock market…
Today we’re discussing one of the oldest questions in the book: “should I trade options or stocks?”
It’s a very simple question… but there is no simple answer.
You see, we believe that you should be able to trade both -- or at least know how to take advantage of both...
There’s one big enemy every trader has…
It’s not the Wizard of Oz turning the gears of the market in secret -- that guy doesn’t exist. And it’s definitely not something smaller, like your system.
The number one enemy of traders is greed...
It’s a killer in this line or work and it could wreck a system faster than anything else.
If you want to become a better trader, the best and first thing you should do is battle your greed.
More and more individual traders are using options exclusively...
You see, it's much easier for individuals to trade options these days than it was 20 years ago.
Plus, options have the advantage of being cheaper and providing leverage.
And most traders like using stock options -- both selling and buying -- depending on market conditions…
But with markets near record-highs, what’s the best strategy to use?
One of the best and most proven methods to build long-term wealth is through owning real estate…
Of course, that’s easier said than done since owning property can be a hassle…
But most investors don’t realize that there’s an easier way to build a large, consistent income without any of the headaches.
And you can access it with one click of the mouse…
In these uncertain economic times, we get a lot of questions on how to best manage a 401K.
We would like to start the discussion with a short intro on what a 401K is for the most part and then cover some techniques on how one can manage it.
There’s only 57 of them in the world.
They are the most elite dividend-paying stocks in the market.
To make the cut, they must have increased their dividend payout every year for at least 25 years. This group of stocks are known as the Dividend Aristocrats.
The stock market has a way of pulling the rug out from under investors' feet when they least expect it…
And in most cases, traders aren’t prepared and even worse… lose money when the market gets volatile and isn’t moving upwards.
But that doesn’t have to be you…
Today we’re giving you one of the easiest ways to pull money out of the markets…
It all starts with one basic asset… the stock.
And the beauty of it is that you don’t have to know where the stock is headed to profit from it.
Emotions; volumes of books are written about them, and they’re one of the toughest obstacles traders face.
As a matter of fact, the fear of trading, or the fear of losing, can hinder even the most experienced of traders...
So, we’re left with one profound question… how do we overcome the emotions involved in trading?
Today we’re going to introduce you to the Moving Average Convergence Divergence (MACD) trading indicator.
It’s a trend momentum indicator that measures the distance between the simple and exponential moving average lines...
And despite the fact that this trading method was developed over 30 years ago -- it’s still among the most popular technical analysis indicators.
Breakout strategies are among the world’s most popular and favorite short-term trading tactics...
But as many of you know, it’s far too easy to get lured into trading false breakouts.
That being said… what if we told you that there’s a simple way to avoid these faulty signals?
Today we’re talking about one of our favorite day trading techniques...
It’s called the 2X Insider Strategy.
This approach uses short-term trading tactics to spot and take advantage of low volatility periods when markets are consolidating and preparing for the next big move.
The majority of beginner traders believe that each stock trades completely independent of other stocks…
Because each company is a separate unit and doesn’t have anything to do with other enterprises, right?
Wrong… you see, individual stocks tend to follow other stocks within the same sector over 70% of the time.
We see it all the time… traders believe that they can control the market and begin to execute trades with gigantic position sizes.
It can be an exhilarating experience, but this feeling of invincibility is also very dangerous…
Which is why you should stick to trading systems. They remove the emotion involved in trading and are proven to work over the long-term.
It’s one of the questions I get most often: “How do I grow a small account?”
This is something I have a bit of experience with — I originally started with a $2,500 account and was eventually able to turn it into an $8 million managed fund thanks to the success I had.
I definitely don’t say that to brag. In fact, I made a lot of expensive mistakes along the way.
Which analysis tools and settings do you recommend? It’s one of the most frequent questions beginner traders ask...
And after receiving almost 300 similar questions, we’ve finally decided to put a short tutorial together.
Do you ever find yourself on the opposite side of a trade -- like shorting a stock that you should be long or vice versa?
And then wondering what you should do next? Trust your gut or ignore it?
Throughout the years, we’ve seen many traders make mistakes by simply ignoring their gut…
Over the years, we’ve noticed that the vast majority of traders have become indicator junkies…
And this has led them into spending tens of thousands of dollars on every imaginable indicator and trading system available.
However, the problem is that almost none of these indicators are actually helping traders make money.
One of my favorite technical analysis strategies and one I often recommend traders start off with is the 4×4 strategy.
During the last several months I have received many questions from traders who are now using this method to trade stocks and other financial markets.
The 4×4 is one of the simplest technical analysis strategies that measures pullbacks. The premise of the strategy is to wait for a market to make a 1 month high, retrace for a few days and then resume the original trend. I will demonstrate the method on a recent trade so you can see exactly step by step the entire process.
While we’re all about keeping options trading simple, there’s one concept that you must learn to fully understand the options market.
We’re referring to the Greeks… But don’t worry, we’ve made it very simple.
Understanding this one key can take most of the guesswork out of the various factors that influence the price of options.
What’s the most common mistake traders make?
It’s not placing the wrong trade. Traders do that all the time and they live to recover. Heck, I’ve even done it.
It’s not ignoring your stops, although you absolutely should follow your stops.
Today we’re going to give you one principle that could make you more successful than 99% of all the traders out there.
Here’s the best part: it’s not some fancy software, a new trading technique, or even some explosive stock you’ve never heard of.
So much about trading sounds a lot more complicated than it is.
For the most part, it’s all about buying as asset at a lower price than you sell it. But knowing when to do both of those things is where it gets tricky.
Momentum trading can help in that regard, as it can point you toward when to buy and sell according to the strength of recent price trends. Price momentum is similar to momentum in physics, where mass multiplied by velocity determines the likelihood that an object will continue on its path.
One of the biggest pitfalls that beginners make is not looking at the big picture and only focusing strongly on certain pieces of the puzzle.
Unfortunately, learning how to analyze stocks involves looking at several different pieces of the puzzle and putting them all together the right way.
There are hundreds of stock chart patterns traders use to enter as well as exit the market.
One of the most if not the most popular entry method is the breakout.
Today I'm going to continue our series about basic stock chart analysis; more specifically I'm going to go through a great chart pattern that works with trending markets that are temporarily pausing, before continuing the trend. The pattern is called the wedge and although it has a strange sounding name, I can assure you that it's one of the best continuation patterns out there.
Today I'm going to show you how to use one of my favorite short term trading indicators to determine market conditions and market direction. The Bollinger Band was invented by John Bollinger in the early 80's. It is mostly widely used as an indicator to locate overbought and oversold market conditions. It quickly became one of the most popular short term trading indicators.
One of our favorite indicators is waving a huge red flag…
It’s telling us that one major U.S. market index is way too stretched out, which means that traders need to be extra cautious right now.
But don’t worry… we’ve got you covered.
As I type this, the market is hitting 52-week highs…
I’m sure you’ve seen few headlines about it… there’s just something about new highs that gets trades excited
But there’s more to it than the buzz it creates. Market action changes and volatility tends to increase.
There’s a large variety of market entry and exit indicators that swing traders can use…
And as a result, it’s no surprise that traders have a difficult time deciding which one to use when maximizing their portfolio.
Which is why we’re going to show you the top three performing ETF swing trading indicators and the most effective method to utilize each.
So, which ETF swing trading indicator is the most ideal for your trading portfolio?
New traders are always asking me what types of trading—day or swing—they should focus on to make the highest returns.
It’s a complicated question and there’s no perfect answer. There are pros and cons to each, and every trader has his or her preference.
Let’s break down each of these types of trading…
Most traders tend to base their trades on whether they believe an asset will go up or down.
I get it. It makes sense—after all, profits (or losses) are determined by the asset’s price movement. Ideally in the direction of the trade, since that’s the whole point.
But there’s another way to bet on an asset’s price movement—without taking on a stance on which direction it’ll go.
When you first started trading did you have any idea what you were doing? Of course you knew about stocks, investing, and a little bit on how to play the market...
But did you know how to spot an explosive stock before the big move?
Probably not… however, we do.
Most traders are familiar with simple trading advice such as cut your losers quickly and let your profits ride. At one point or another, most traders heard or read such advice or something that sounds similar to it.
Many traders focus so much on being profitable, that they completely ignore the most basic and important principles such as making sure both positions have equal risk and reward profile. Regardless of the stock swing trading techniques you pick, you need to make sure your trading apples to apples and not apples to oranges.
The Cup And Handle pattern is often used by traders for long term stock trading analysis. However, this pattern is also effective for short term trading strategies that set up over the course of a several weeks instead of years. The pattern also works surprisingly well with other financial markets such as futures, commodities and currencies.
I'm always on the lookout for simple strategies that my students can apply to day trading with short term price patterns and indicators.
One of the easiest patterns to learn and one of the first ones I teach traders is the U turn strategy.
What’s the best indicator for trading technical analysis strategies? And If traders could only use one, what should it be?
The answer is rather tricky since the best indicators are the ones that suit the current market environment we’re trading in…
Day trading gets a lot of hype.
Everyone loves the idea of sitting down in front of their computers, staring at the monitor (or, in my case, monitors) for a few hours and pocketing a few thousand dollars by the end of the day.
Rinse and repeat.
Today I'm going to cover the 10 million dollar question, the most frequently thought and just as frequently asked question about swing trading: "Is Swing Trading For A Living Possible?"
There are several factors that need to be examined to determine if swing trading for a living is possible. Many people read how to get rich books and think that swing trading for a living is an easy process. I will be the first person to tell you that if someone gives you the impression that trading is easy, you should run the other way as fast as you possibly can.
One of the easiest patterns to learn and one of the first that I started using is the U-turn strategy. It’s a very fast reversal pattern that works wonders with volatile stocks, futures, currencies and commodities.
The reason I’m focusing on simple strategies is because so many times I see beginning traders who believe that complex strategies equate to profitable strategies and that is not the case.
In reality, the more complex the strategy, the more difficult it is to interpret, execute and manage, therefore; more often than not complex strategies do not equate with accuracy or profitability as often believed to be the case.
Without getting into advanced theory or trading principles, the majority of all stock market trading action is divided into two primary trends. The main trend and the minor or the short term trend.
The main trend drives the predominant cycle of trading action and guides the overall direction of the movement of the asset. If you know how to identify the main trend you will know the direction in which to initiate your position.
Finding breakout stocks is both an art and a science. Traders rely on visual analysis as well as technical indicators to help them find high probability setups that produce less false breakout signals.
Today I’m going to show you a few patterns that are currently setting up in today’s market environment so that you can see by way of example the type of set ups that we are looking to trade in the coming weeks. Keep in mind that these are not trade recommendations but a visual analysis of setups so you can see how we visually analyze stocks when they are setting up.
When you examine an options chain, there will be a column that's titled open interest, which can be a very useful tool for options traders.
Unlike most futures or stocks, currencies are open around the clock and trend substantially more than stocks, commodities and interest rates. The best type of indicators to apply to currency markets are trend following and momentum indicators.
There are hundreds if not thousands of swing trading stocks strategies that are available to traders today. Unfortunately, the majority of these strategies or techniques don't provide the results traders are looking for.
While I always advocate keeping options trading simple, there are a few concepts that are necessary to comprehend in order to fully understand the variables that influence the price of an option.
These variables are commonly referred to as the “Greeks” and their purpose is to describe the main characteristics that influence risk and consequently the price of an option at any given time.
What if we told you that you could control a $10,000 position with $1,000?
Or better yet… that you could use a small trading account to capture an even larger position size and perhaps more money?
Both of these questions might sound unusual, but it’s all possible by utilizing margins and leverage…
Many traders believe that receiving premium for the covered call is the most important part in the process. But there are many things that can happen between the time the covered call position is opened and closed, and that's what I want to discuss with you today.
Today, we want to show you one of our favorite ways to make money in the markets…
It all begins with one basic asset… the stock.
And the best part is that you don’t need to know where the stock is headed to achieve massive gains.
The key? Learning how to place credit spreads but don’t worry, it’s easy with this formula…
In many cases, investors often begin trading without any proper knowledge or grasp of the various order types.
Or even worse… traders end up in a faulty position or enter the stock market in the wrong direction without realizing it.
And the craziest part is that this occurs more often than you think!
A good options trade can bank 100% in profit from a 10% gain in stock price. But it can be tricky getting started.
So we wanted to share our guide with you, "Options Trading for Beginners: How to Get Started and Make Money with Options."
But there's also one small piece of advice we want to share, something even experts forget often. It can make or break an investor, so stay tuned…
It’s finally here!
Rob Booker has revealed the fastest and most profitable trades happening in the markets right now and on assets that you’ve probably never even heard of...
He’s trading exotic currencies and they’re one of the most remarkable opportunities for the average investor.
It's hard to beat the excitement that comes from angel investing.
But the truth is, you don't even need $50,000 to become an angel investor yourself.
In fact, we'll show you how you get can a piece of the next Amazon for about the price of one of its Echo Dot smart speakers.
Eighty percent of the market's annual movement happens when earnings reports are released. And it's earnings season once again.
That means more than 400% gains for one of the best penny stocks to buy in August 2019.
From July 29 to August 5, the Dow Jones Industrial Average and S&P 500 took their biggest weekly losses of 2019 so far – 5.8% and 6.2%, respectively.
Despite this, one of the best small-cap stocks to buy now could still pop for a 130% gain.
This is a stock that can carry investors through thick and thin – in fact, it already has.
The stock market just had its worst day of the year (Aug. 5) when the Dow plunged 767.27 points.
Investors looking for safety in bonds are out of luck, too. The current yield on a 10-year Treasury fell from an already-low 2% to just 1.6% after the U.S. Federal Reserve cut rates last week.
That's why the best dividend stock to buy could help you weather the storm no matter what happens next.
Understanding basic economics can lead to huge profits in the markets.
At the same time, not understanding them can lead to huge losses.
You see, the Federal Reserve announced this week that they would lower interest rates. And not knowing how this rate cut will move the market could lead to some serious financial damage…
Elon Musk's latest tech rollout is straight out of science fiction. It could also mean $100 billion growth for the cybersecurity industry.
And our best cybersecurity stock is going to ride this wave. In fact, it's grown its profits by 198% over the last three years, with no signs of slowing down.
One of the hottest industries in history was the “dot-coms.” The late ’90s was the era of internet adoption, and it was huge. Many of today’s millionaires have the dot-com era to thank for their fortune.
Now, there’s a new industry on the scene that’s making headlines and minting millionaires – and it’s even more ripe with opportunity than the dot-coms were.
You can make big money fast in this veritable feeding frenzy…
By 2050, clean energy investments will total $10 trillion.
And one of our top renewable energy stocks to watch has gained 64% over the last six months. But, that's just the beginning.
This industry still has much further to grow. It's a bull market in the making.
Options were originally invented for one main reason – to minimize risk. And they still do this today by making money no matter which way the market goes.
To make sure their risk is as low as possible, successful option traders use a variety of strategies -and one of them offers the highest probability possible.
Done right, this strategy starts you out with a 67% probability of success.
Since last year's cryptocurrency crash, blockchain isn't getting nearly as much attention from investors.
But make no mistake. Blockchain is now a billion-dollar industry, and it's on the cusp of a massive expansion. And now that many of the pretenders have been killed off, it's time for the real-deal blockchain stocks to shine.
We've got a pick in this space that might surprise you.
On July 10, everyone’s eyes and ears were on one thing – the Fed. And there’s a good reason why.
You see, after the U.S.-China trade war heated up last May, the market fell further than it had all year. And the Fed was the only thing that was able to pull it back up.
Fed Chairman Jerome Powell delivered his long-awaited testimony before the House Financial Services Committee. And the market was listening for one very important catalyst…
The best 5G chip stocks stand to benefit the most as cell phones transition from 4G to 5G over the next two years.
TechCrunch says mobile device giant Apple Inc. (NASDAQ: AAPL) is launching its first line of premium 5G iPhones in 2020. But by 2021, all of the company's iPhones will run on 5G.
That means it's still early in 5G's rollout, and there's a windfall of money coming for investors who know how to play it.
It's been said that "we can't have nice things."
A day after markets cheered the U.S.-China trade truce, U.S. President Donald Trump threatened to slap $4 billion in tariffs on goods flowing out of the European Union.
That news overshadowed OPEC's major decision to extend crude production caps through March 2020.
Oil prices plunged Tuesday.
The other day, I was talking to a student of mine about her stock portfolio. And let me tell you – it was looking pretty good.
I mean, why wouldn’t it? All three indices are approaching record highs. We’re in the middle of the biggest and longest bull market in history at 10 years, and my student is among many others who have been enjoying the healthy ride.
But here’s the thing – historically, bull markets only last about five years. So we’re overdue for a major correction…
Since the start of April, stocks have only gained 1%, but it's times like these when the best high-yield dividend stocks to buy now help investors the most.
The best dividend stocks are safe havens with strong, consistent yields. Plus, the top high-yield dividend stocks have great upside potential too.
And our three best dividend stocks are doing just what we expect them to do: outperforming the stock market.
After a bleak May, stocks are finally rallying again. But with the bull market creaking well past its 10th year – the longest bull market ever – investors are reluctant to put more money in the market. And that's exactly why this is the best time to invest…
Since the start of June, the Dow Jones has climbed nearly 7%, while the S&P 500 hit an all-time high earlier this week.
Things couldn't be better for investors. However, you wouldn't know it from looking at Wall Street's largest investment firms.
The S&P 500 just hit a record high of 2,954 following the Fed's latest hint that it will cut interest rates.
That surge makes now the perfect time to invest in penny stocks. And that's why we're bringing you our top penny stocks to buy in June.
In early May, the Volatility Index (VIX) shot up as high as 20.55. Now, it's dropped down to 14.75. That's thanks to the U.S. Federal Reserve's interest rate cuts announcement on Wednesday (June 19).
With the war drums beating in the Middle East, investors are looking for the best defense stocks to buy right now. Last night, leaders of the Iranian Revolutionary Guard announced their military had shot down a U.S. drone and proclaimed that the nation is "ready for war."
While the Islamic Republic's media arm IRNA claims that the American drone passed into the nation's air space, the U.S. military claims a surface-to-air missile hit the drone over international air space and the Strait of Hormuz, a critical seaway for global oil shipments.
Investors recognize that in times of geopolitical threats and uncertainty, defense stocks provide appreciation upside and reliable dividend streams. They also operate in a "must have" industry that is virtually recession-proof due to the United States' commitment to a strong military.
While there are always stories about traders lucking into a winning stock on a hot tip, most of the time making money requires thoughtful work. And like any tradesman, a good set of tools is invaluable in getting that job done.
You might be able to drive a nail by banging it with a rock, but the result is so much better when you swing a nicely weighted hammer. The same applies to your trading tools. That's what we are going to bring to you here – a set of finely balanced tools to help you create great wealth.
Picture this – you’re walking down the street and then suddenly grind to a halt. Standing in front of you is one giant mass of people.
You might wonder… “what the heck are they waiting for?”
Because typically, a large crowd means there’s some big event that’s about to happen.
Well, that’s also true in the stock market. Bullish and bearish sentiments can actually predict any stock’s next move.
There's no other way to say it – the legal marijuana industry is booming. And while investors around the world have been riding this wave, many are not leveraging the industry's full potential.
Today, we'll show you exactly how to boost your returns on pot stocks with options.
It's an industry that could easily reach $50 billion in revenue by Jan. 1, 2020, and that is only about six months from today. The growth curve is spectacular. Grand View Research expects the global legal marijuana market to grow to $146 billion by 2025.
Investing rules are made to be broken. It's not that we want to be rebels for the sake of disagreeing with the big shots on Wall Street, but when the market changes, we have to change with it.
We've all heard about the two most popular investing strategies: growth and value investing. Growth stocks, with their potential for revenue increases, offer investors the chance at huge gains as these hyped-up companies soar. Then there are value stocks, which are trading for less than what they're really worth. When the market catches up, their share prices can surge.
But now, new research shows that both of these groups actually cheat investors out of returns in the current market. A third, less hyped-up strategy is beating both value and growth investing.
Turn on CNBC, FOX Business Network, or any other financial news channel in the morning before the market opens at 9:30 a.m., and you'll be treated to a whole lineup of people predicting what the markets will do that day, or why such and such a stock will rise or fall.
You'll never really hear how or why they say what they do, though. And you'll never hear them admit when they got it wrong.
And when the Dow is jumping all over the map, plummeting 400 points one day and swinging to 600 the next, they're wrong a lot.
But today, I'm going to give you a little set of "secret weapons" the cable crowd can only dream of.
We all know why trading options is the only way to make any real money in the stock market.
It doesn’t even matter if the market tanks 70 points, bounces 1,000 points, or does nothing at all.
You can quickly and easily double your money in any conditions.
American cannabis markets get a lot of attention from investors, and deservedly so. As far as legal markets go, the various U.S. states constitute the largest in the world, and they'll continue to for years.
After all, the legal marijuana market in California alone is far bigger than the even the vast Canadian market will ever be. Multi-state operators (MSOs) are learning how to build operations and brands across the United States, despite patchwork legalization.
These ingenious pioneers will define the American cannabis market of tomorrow; they'll make millionaires of U.S. cannabis investors, too.
We’ve seen some wild price swings lately, with the biggest swing - 617 drop on Monday - left investors frustrated wondering what could possibly come next.
And that’s why today, I’m going to dig into the six best ways to trade volatility - no matter which way the market moves.
Let’s get started…
I’m going to be blunt here – flipping stocks is the best way to make money in the market.
Really, it’s just like making money off of a house that you already own – but in the case of flipping stocks, you’re making money off of a stock you already own.
There’s just one issue – owning a stock can cost hundreds of dollars a share, and that’s a price I’m just not willing to risk.
We all saw what happened in the market on Monday, unless of course you’ve been living under a rock,
Maybe just like, and this 617-point drop continues to wreak havoc on investors’ confidence, with everyone now making bets on what the next big move will be…
Let them.
Because I’m going to take the guesswork out of it for you and show you exactly how to secure your next profit - whether the market’s up, down, or sideways.
This week, at least 15 companies have priced for IPOs – but there’s only one that I care about…
And that’s Uber Technologies Inc. (NYSE: UBER).
Investors have been readying their wallets since the ride-sharing platform filed for its IPO last month. But Friday morning, the company officially started trading publicly, and it’s expected to be one of the biggest technology IPOs in history.
Wall Street came out of the gate this week hard on news that President Trump is taking a tough stance with Chinese tariffs ahead of the May 10 deadline, set last Sunday. Predictably, US-centric headlines are focused almost exclusively on whether that’s the “right” move or not.
That’s little more than metal-floss, and if you fall for it, potentially a very expensive mistake.
Every quarter, like clockwork, the talking heads eagerly wait for the gross domestic product (GDP) report to be released.
Now, you can think of GDP like the report card for the country’s economy’s very own “report card” in that it shows the current growth of the economy.
The first quarter GDP report was released, beating economists’ expectations by nearly a whole percent - marking 10 year of economic expansion in July.
In trading, probability of profits and potential profitability are inversely correlated.
In less scientific terms though, it means that the probability of your profits and how much profits you can make are connected more than you might think.
Higher probability trades offer lower profit potential while lower probability trades offer higher profit potential.
Roger Scott is at it again.
He just released a challenge for aspiring options traders to become his next success story.
Here at Investing Breakout we love free information from gurus and this workshop is 100% free.
Dividend investing for income is a super popular strategy, but there are many misconceptions that take most dividend investors by surprise.
However, there’s a program to help you achieve significant income with super dividend training in a short amount of time.
The idea is to buy and hold stocks that consistently payout solid dividends in order to get the dividends, plus the stock growth.
Roger Scott has done it again.
Last week, in his webinar, he challenged subscribers to his 10x challenge.
He guaranteed subscribers that his winning alerts would have a total aggregate return of 1,000% or more in the next three years or he’ll cut members a check for $10,000 with no questions asked.
There’s a trading system so simple that anyone with any account size can astronomically grow their accounts over the next five years.
When I use the word “astronomical”, you probably think that I’m talking about how to pick the next Amazon (AMZN) or Netflix (NFLX) stock.
While this may be true if you managed to buy AMZN or NFLX near their low, you could have amassed a 700% return over 5-7 years.
Weekly Covered Calls are one of the most consistent growth investment strategies out there, with average expected returns of between 8-12% annually.
However, almost no one associates Covered Calls with explosive growth potential... and they’re wrong.
One thing you’ll notice when you start to learn about options and option trading strategies is that there is a lot of them.
That said, the bull call spread is one of the best bullish options strategies.
It consists of two call options, and the trade is done for a debit.
Most traders aren’t even aware of what I’m about to tell you…
Stock indexes were up about 20% in 1999 and those major stocks moves can be attributed to just 25 different stocks.
These microbursts have an 85%, 90%, and even 95% accuracy rate.
When I first started trading, I had the fortune of doing well… until I didn’t.
I doubled one of my first trading accounts in a short amount of time, but several months later that account dwindled to almost nothing.
I did that twice before I realized that the real money was in selling options.
Ask any trader if they would rather have $10 million or 10 more years on the earth.
Most would say 10 more years because the one thing traders value more than generating a return is time.
However, time is not something we can increase. We only have 24 hours in day, seven days a week.
Most traders aren’t maximizing their profit potential.
They place a trade, it sits, and then they wait for some miracle to happen.
In most cases, nothing happens because traders repeat the same procedures over and over again that lead them back to the same starting point.
Trading itself can be difficult, but deciding which stock to actually buy is even more overwhelming.
Wouldn’t it be nice to find “Super Stock” opportunities before they make their explosive moves?
The obvious answer to that question is yes.
For most traders, the goal is to make money in the market.
A few days ago, I watched Ryan Jones's Video on Weekly Options, which explained how to reach that specific goal.
Ryan is the creator of PayDay Stocks and has been an active trader since 1987.
Ryan Jones, CEO of Quantum Trading, held a LIVE webinar a few days ago.
I truly believe he pointed out a concept that many traders overlook.
Seasonal influences.
The cannabis boom is just in the early stages of major growth.
Thanks to growing acceptance, including Canada’s legalization in 2018, further U.S. state approval, and growing interest from corporate America the global cannabis market could reach $194 billion global market, according to the Bank of Montreal, as noted by Business Insider.
By now, you’re well aware of how to find trends using simple moving averages, such as the 50- and 200-day moving averages. But you should also know how to potentially spot when a trend could stop dead in its tracks, or birth a new trend.
All we have to do is wait for a crossover to do so.
“Explosive growth with minimum risk!” Does that sound too good to be true?
Covered calls are typically portrayed as a conservative strategy. A way for investors to generate additional income based on stocks they have in their portfolio without taking on significant risks.
When it comes to trading, nothing is ever a guarantee.
Markets can hit all-time highs one day, only to plummet the next.
2018 was quite a year for IPOs.
There were 188 of them, raising up to $45.7 billion.
Support and resistance are two of the most powerful technical indicators on the market.
One of the worst things an investor can do is to get caught up in the glitz of an IPO.
Not All Stock Chart Patterns Are Created Equal There are hundreds of stock chart patterns traders use to enter as well as exit the market.
In this video, I am going to show you how to deploy an easy to use strategy that works in any market, and in any time frame.
2018 was quite a year for IPOs.
In fact, there were 188 of them, raising up to $45.7 billion. By the way, that’s about 47% greater than 2017. Unbelievably, 2019 could be even more impressive.
2018 will go down in history as one of the most volatile on record.
But believe it or not, one of the most consistent ways to make money on the market is by trading excessive fear, as dictated by the Volatility Index.
Many traders, who are starting out, have a strong believe that swing trading stocks techniques have to be complex to be profitable.
When bungee jumpers plummet off a bridge, what happens?
They pop back up, right?
The very same thing happens with stocks when they become too overbought or oversold. And if we can position ourselves for the exact moment the “snap back” happens, we can make money. And it’s actually quite easy to spot.
Markets were clobbered in the last few months of the year.
The Dow Jones Industrial Average plummeted from nearly 27,000 to less than 24,500. The tech-heavy NASDAQ slipped from 8,000 to less than 7,000.
The U.S. economy is one of the best on record.
U.S. GDP came in at a better-than-expected rate of 3.5% for the third quarter.
Today I’m going to discuss one of the most popular indicators for short term trading strategies. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements.
Most of us are well aware of the seasonal trading patterns around the holidays.
Most of us are also well aware that companies whose sales and profits ramp up in the holiday season are great stocks to buy for a short-term run-up.
Today I’m going to you one of my all-time favorite indicators to help you identify high probability trading opportunities in different market conditions.
One of the best ways to become a great trader is to try new things.
Unfortunately, there’s no such thing as a perfect strategy. But if you’re willing to trade outside of the box, you can become a better trader.
The focus of this video is solely based on how to trade safely, which simply put, means keeping the odds of success in your favor. One of the strategies that does that for us is my Winning Momentum Strategy.
When it comes to technical analysis, moving averages are essential.
For example, for more than 20 years, I’ve relied on two specifically – the 50-day and the 200-day simply moving average. Not only am I looking for crossovers for golden and death crosses, I want to see if a stock is holding its own above them.
By any metric, the markets continue to power higher…
The Dow just broke a new all-time high, with the S&P 500 and NASDAQ following suit. But despite this record-setting run, the financial pundits are out there warning that the next major crash is right around the corner.
If you’re reading this, then you’ve heard me talk about the secret way that I earn income – thousands of dollars – in just seconds. And today, I’m going to show you exactly how I do it. But first, I want to start with the basics.
Selling puts is a short-term strategy you can use to generate some monthly income. Ideally, you’ll want to sell “out-of-the-money” puts on stocks you want to own that are trading higher than the strike price of the put option you sold. A put option is out-of-the-money when the strike price is lower than the current stock price.
The Parabolic Stop and Reverse (SAR), is a trend following indicator that uses colored dots to visually signal current price direction.
It can also use the dotted lines to highlight entry and exit signals.
In 2005, a flock of 1,500 sheep began jumping off a cliff for no real reason.
In the middle of a clear blue day, they just started jumping. All shepherds could do was watch.
And as insanely ridiculous as this sounds, some of us are those sheep.
Fear and greed are the ultimate telltale signs of a potential reversal.
When traders get far too greedy, they send stock prices ridiculously higher. When traders get too fearful, they tend to overreact and send stocks too low, too fast.
t’s not about having the perfect strategy.
It’s about the rule you abide by with each trade.
One of the biggest issues facing all walks of traders is a severe lack of discipline and structure in stock buying habits. Many fail to use stop losses, or even protect gains with a simple trailing stop loss strategy. Others risk far too much.
To the average trader, candlestick patterns are a bunch of crosses and odd shapes with bizarre names, like the three black crows, or the abandoned baby bottom.
But as odd as they may sound, they can provide powerful insight into direction.
Tesla Inc. has been a slow-motion train wreck.
All thanks to un-CEO behavior from Elon Musk.
Shares of the stock plunged after video surfaced of him smoking pot on a podcast, capping a volatile month for the CEO. That was in addition to resurfaced conflict with a British cave explorer, and Musk’s tweet that he was “considering taking Tesla private.”
Any time you use technical analysis, confirmation is essential.
If you’re not willing to confirm, you’re doing yourself a great disservice. In fact, at no time will I ever just use Bollinger Bands (2,20), MACD, relative strength, or Williams’ R% alone.
Canada is going to pot. On October 17, 2018 recreational and medicinal marijuana will be officially legal throughout the entire nation of Canada.
With an adult population roughly 6 times larger than the adult population of Colorado, Canada is poised to raise billions of dollars in revenues in the months and years to come.
Whenever you enter a trade, the more confirmation you get for a potential breakout or reversal, the better.
In this discussion, we will look at 4 indicators that can fire a powerful signal if they all line up in agreement.
Achieving consistency doesn't have to be a guessing game. If you're a savvy, investor, you're always looking for an edge that puts the odds in your favor.
Bollinger bands, MACD, RSI, WIlliams' %R are all indicators that cn help you identify potential reversals with 80 percent accuracy.
There are also some chart patterns that can help you identify possible breakourt and reversal setups.
