We’ve all heard the old saying “experience is the best teacher.”
I know I heard it a lot growing up. My mom believed that any chore was an “experience” — meaning I heard the phrase every time I was asked to set the table or do the dishes.
I may have grumbled then, but as I’ve grown older I’ve realized the truth of these words.
Today, I live on a ranch in Wyoming. And let me tell you… You can’t learn how to rope cattle or pull barbed wire from YouTube. Only firsthand experience can teach things like that.
You also can’t become a successful trader without personal experience.
Unfortunately, when it comes to the stock market, experience is the most expensive teacher. You risk losing a lot of money when you’re first getting started.
Luckily, there’s a loophole to the phrase I heard so many times as a kid…
It’s a little thing I like to call “OPE.”
The “OPE” Loophole
“OPE” is a term I coined for “other people’s experience.” Instead of risking my own money and learning from expensive mistakes, I talked to other traders.
See, when I started my trading career, I had a unique opportunity to talk to the best of the best.
Shortly after joining the Market Technicians Association, I began a monthly series where I interviewed market pros for the newsletter.
Much to my surprise, these professionals were more than willing to talk all day long about their trade secrets — if you could manage to get a meeting scheduled, that is.
I talked to old-timers like Ralph Acampora and Jeff Weiss. They both worked for decades as analysts at traditional Wall Street firms.
I also met rising stars like Katie Stockton and Paul Ciena. Katie had just launched her own ETF. And Paul is currently the lead technical analyst at Bank of America Merrill Lynch.
I learned something in every interview.
Floor traders explained liquidity to me. They taught me how to sell. They all laughed about stop-loss orders — which are practically an invitation for them to give you a bad fill, costing you more money.
One trader told me all that mattered was making money. He didn’t care about being right, and he didn’t pay attention to prices. He simply took the other side of everyone else’s trades to make a profit.
Thanks to that interview, I never worry about being right. I take my losses in stride, and keep trading — because I know that frequent small gains add up to large fortunes.
These floor traders were brilliant. They thought fast. They did math in their head that today’s traders rely on computers for.
See, the job of a floor trader was to make a market. Floor traders existed so that everyone else could trade.
But these days, computers handle order flow. Market floors are mostly closed. And traders with this valuable experience are becoming more and more rare.
Lucky for you, one of the last bona fide floor traders has just joined the True Options Masters team…
Trade With One of the Greats
Andrew Keene was a floor trader at the Chicago Board of Exchange for 10 years. He became known around the world for making his fortune during the 2008 financial crisis, and being one of the world’s biggest market makers for Apple (AAPL).
When the floors started closing, Andrew took his experience and pioneered one of the first live trading rooms.
Its track record is unreal. From when he started in February until now, members of his trade room have reported gains as high as 100%, 200%, even 1,000% in a matter of hours, if not minutes.
And in that same time, his official portfolio is UP 11.2% while the market is down 20%.
After speaking to him, I’m not surprised by how successful his Trade Room has been…
Like all great floor traders I talked to, Andrew has a sense of the market. He also has an eye for spotting unusual activity in the order flow.
This is something you can’t learn from books. Like pulling barbed wire or roping cattle, you have to learn from experience.
Andrew has the experience. Decades of it, to be exact.
And now’s your chance to learn from him…
Soon, Andrew will open the doors to his Trade Room for the first time in years. But space is limited — only 1,000 members can join to start.
If you haven’t already, put your name down here for priority access to Trade Kings.
Andrew’s one of the last great floor traders of our time. You’ll never see another opportunity like this.
Regards,Amber Hestla Senior Analyst, True Options Masters
Chart of the Day:A Groundbreaking Innovation in Price Action
By Mike Merson, Managing Editor, True Options Masters
(Click here to view larger image.)
The ARKK Innovation ETF is back at its pandemic lows. Rough stuff.
But the question now becomes, will it go lower? Or is this the right place to start buying into wickedly depressed companies at bottom-dollar valuations?
If you listen to Chad Shoop, you know there’s a possibility that ARKK and its ilk go MUCH lower. He thinks the S&P 500 could plumb the pandemic lows. If that happens, ARKK would basically be cut in half.
Whether or not that happens in the long term, I like ARKK here in the short term. It bounced pretty hard off that yellow line, which represents the lowest closing price in March of 2020.
And it’s currently even more oversold now than it was then, while making slightly higher lows on the RSI.
All this suggests to me we have a short-term bottom. I wouldn’t call it a safe trade, but if the broad stock market is going to have another bear market rally, ARKK is very likely to experience at least some relief.
Regards,Mike Merson Managing Editor, True Options Masters