Trading Strategies

The Most Popular, Yet Useless, Market Tool

Monday, I shared a process for finding your edge. You’ll recall there were three steps: I noticed something about the markets that tracked with how I wanted to trade. I developed a system for predicting the moves I was looking for. I added a way to produce trading signals from this system. This might sound…

A Global Currency Reset Is Upon Us

With a hurricane bearing down on our video editing team, Amber and I skipped our usual video this week. (Check out the first two on our YouTube channel here.) Instead, we’ve put together a few charts we think are important. So important, in fact, that they’re likely the precursor of a global monetary reset on…

Changing Up the Playbook (First Put of the Year)

It’s been a rocky Q3 for the stock market… The S&P 500 hit a new YTD low this morning. Every chart looks like a child’s drawing of a mountain range. Up, down, up, down… So, what’s a trader to do? Well, just like in life, you always have choices when faced with unfortunate circumstances. You…

The Market Tested Me, and I Passed

I’d spent 20 years preparing for the day… It was February 1, 2005. My first day as an Air Force retiree. I woke up that morning and didn’t have anything to do. The first such morning in half my life. It was exactly what I’d planned for. My plan was to trade for a living….

Think Option Leverage is Simple? Think Again

My role in the Trade Room is a little different from Andrew’s. AK mans the scanners. He’s watching each signal that comes through, and giving his blessings to only the best. Meanwhile, I play the role of trading coach. I ensure that everyone who joins the room is getting the education they need to manage…

Why I Turned Down a Safe, Easy Life

Right after I was promoted to first lieutenant at the Pentagon in 1987, a contractor talked to me about a job. He was ready to hire me as soon as I got out. I politely listened. But I was terrified on the inside. Becoming a contractor was a fine career path. It was typical for…

How We Beat the House on Las Vegas Sands

Remember how last week I talked about the daily RSI on the S&P 500? If you’ll recall, when the RSI breaks the 30 level, that makes the market officially oversold… Well, this morning, it hit 29. We’re at our most oversold point since February. That doesn’t mean we can’t get MORE oversold. As an extra…

A New Idea to Trade the Recession

Today, I have a new connect-the-dots trade to profit from a recession. The dots, just like with Monday’s trade, start with the economic situation. Like it or not, a U.S. recession seems inevitable. Recessions historically destroy wealth. The last recession coincided with peak drops of 58% in the U.S. housing market index and a 54%…

The Worst Stock in the S&P 500

After Amber and I released our first video last week, we didn’t know what to expect in response. I’m happy to report that we wound up getting exactly what we hoped for… A lot of feedback on how we can make even better videos, and questions for us to answer. I want to thank you…

Fed Crashes, AK Cashes

Bit of a crazy week in the stock market to say the least. Over 260 stocks hit 52-week lows this week… The market proved as volatile as ever… And Powell’s speech and the Fed raising interest rates another 75 basis points didn’t help much. As expected, chaos ensued… And fear took hold. So much fear,…